CEOs are eagerly embracing generative AI, but they’re encountering hurdles related to their workforce, culture, and governance, which could potentially impede progress, as per a report from IBM’s Institute for Business Value released on May 16.
A survey revealed that over half of CEOs are pushing for generative AI adoption at a pace that some employees find discomforting. Furthermore, half of the CEOs are recruiting for generative AI-related positions that didn’t exist just a year ago. However, despite this enthusiasm, more than half of CEOs haven’t evaluated the impact of generative AI on their workforce.
Matt Candy, IBM Consulting’s global managing partner, emphasized the importance of having the right people and culture to drive progress in generative AI adoption. He stressed the need for a cultural mindset conducive to adoption and change leadership as companies integrate generative AI into their business strategies.
In a global survey of 3,000 CEOs, 64% highlighted the critical role of people’s adoption in the success of generative AI, surpassing the importance of the technology itself. While 63% of CEOs expressed confidence in their teams’ ability to integrate generative AI, few understand its potential impact on workforce and culture. Moreover, half of the CEOs anticipate reducing or redeploying their workforce within the next year due to generative AI adoption.
Inspiring teams with a common vision is considered crucial by 81% of CEOs for achieving better outcomes. However, 37% acknowledged that their employees don’t fully grasp how strategic decisions affect them. Additionally, 35% anticipate the need for workforce retraining and reskilling in the next three years, a significant increase from 6% in 2021.
As companies navigate AI adoption, organizational structures are already evolving, with leaders focusing on change management strategies and communication plans to keep employees informed. Despite 80% of companies investing in AI, half remain uncertain about its business impact and implementation strategies, citing barriers such as organizational expertise, employee skepticism, and regulatory constraints.
Tech leaders anticipate a mix of layoffs and new hires in 2024 due to AI adoption, with over 60% finding it increasingly difficult to recruit top tech talent. Internal development programs have been instituted by two-thirds of companies to help employees adapt to emerging AI tools.
