- CEO confidence in the effectiveness of basic IT services
nearly halves over 10 years
- 43% of surveyed tech CxOs say concerns about their
technology infrastructure have increased because of generative
AI
ARMONK,
N.Y., Aug. 21, 2024 /PRNewswire/ -- A new IBM
(NYSE: IBM) Institute for Business Value study found that
while IT leaders are preparing organizations for accelerated
generative AI adoption, C-suite executives' confidence in their IT
team's ability to deliver basic services is declining.
The global study* of 2,500 of C-level technology executives
(tech CxOs) from 34 countries revealed that less than half (47%) of
those surveyed think their IT organization is effective in basic
services compared to 69% surveyed in 2013. Today, only 36% of
surveyed CEOs and 50% of surveyed CFOs believe IT is effective at
basic services, down from 64% and 60%, respectively since 2013.
At the same time, 43% of surveyed tech CxOs say their concerns
about their technology infrastructure have increased over the past
six months because of generative AI, and they are now focused on
optimizing their infrastructure for scaling generative AI.
Respondents report they are currently spending 29% more on hybrid
cloud than AI, and, over the next two years, they expect to spend
half (50%) their budget on hybrid cloud and AI combined.
As tech CxOs prioritize generativeAI-ready infrastructure
investments, two-thirds of surveyed CEOs cite that a strong tech
CxO and CFO collaboration is critical to their organization's
success. However, a disconnect exists: only 39% of surveyed tech
CxOs say they collaborate with finance to embed tech metrics into
business cases, and just 35% of surveyed CFOs report being engaged
early in IT planning to set strategic expectations. Among the
high-performing tech CxO respondents, the study found that
organizations that connect technology investments to measurable
business outcomes report 12% higher revenue growth.
"Tech leaders today are grappling with multiple business
demands, made even more complicated by the rise of generative AI.
They must navigate the challenges of modernizing their IT
infrastructure and scaling generative AI to support the business'
core competitive advantage, " said Mohamad
Ali, Senior Vice President, IBM Consulting. "In this
evolving AI landscape, the relationship between tech CxOs and their
finance counterparts has never been more important, aligning
technology spend with business outcomes to drive real value from AI
investments."
Responsible AI is top of mind for tech CxOs, but there is
a gap between intention and actions
- For the majority (80%) of CEOs surveyed, transparency in their
organization's use of next-generation technologies, such as
generative AI, is critical for fostering trust.
- Yet, most tech CxOs acknowledge their organizations are falling
short on delivering core responsible AI practices at scale:
- Only half (50%) of respondents say they are delivering on key
responsible AI capabilities for explainability, and even fewer
say they are delivering capabilities for privacy (46%),
transparency (45%) and fairness (37%).
- 41% of tech CxOs surveyed reported an increase in their
concerns about regulation and compliance as a barrier to generative
AI over the last six months.
- However, most (70%) tech CxO respondents see regulatory
change as an opportunity versus only 50% of CEOs.
Tech CxOs are driving their organizations to rethink their
talent strategy to meet the needs of the generative AI
era
- 63% of tech CxOs surveyed agree that their competitiveness will
hinge on their ability to attract, develop and retain top
talent.
- However, 58% of tech CxOs surveyed say they are having
difficulty filling key technology roles, and only 27% of
respondents identify talent as a top priority.
- Over the next 3 years, tech executives anticipate a surge in
skill scarcities over key areas, including cloud (+36%), AI (+29%),
security (+25%) and privacy (+39%).
- 40% of respondents report an increase in their concern over the
past six months.
- More than half (54%) of tech CxOs surveyed blame financial
pressures for hindering their ability to invest in technology
talent.
- Many tech CxOs surveyed (69%) say they are turning to business
partners as a source for specialized skills
To view the full study, including recommendations for technology
leaders, visit:
https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/cxo
*Study Methodology
The IBM Institute for Business
Value (IBV), in cooperation with Oxford Economics, surveyed 2,500
C-suite technology leaders, including Chief Technology Officers
(CTOs), Chief Information Officers (CIOs), and Chief Data Officers
(CDOs) from 34 countries and 26 industries during Q1 2024. The IBM
IBV data analytics team performed a series of in-depth analyses and
data transformations to indentify a group of high-performing
technology organizations corresponding to clear outperformance on a
variety of financial and operational measures. The study also
includes data from the 2024 CEO Study and upcoming 2024 CFO
Study.
The IBM Institute for Business Value, IBM's thought leadership
think tank, combines global research and performance data with
expertise from industry thinkers and leading academics to deliver
insights that make business leaders smarter. For more world-class
thought leadership, visit: www.ibm.com/ibv.
About IBM
IBM is a leading provider of global hybrid
cloud and AI, and consulting expertise. We help clients in more
than 175 countries capitalize on insights from their data,
streamline business processes, reduce costs and gain the
competitive edge in their industries. Thousands of government and
corporate entities in critical infrastructure areas such as
financial services, telecommunications and healthcare rely on IBM's
hybrid cloud platform and Red Hat OpenShift to affect their digital
transformations quickly, efficiently and securely. IBM's
breakthrough innovations in AI, quantum computing,
industry-specific cloud solutions and consulting deliver open and
flexible options to our clients. All of this is backed by IBM's
long-standing commitment to trust, transparency, responsibility,
inclusivity and service. Visit www.ibm.com for more
information.
Media Contact
Marisa
Conway
IBM Communications
conwaym@us.ibm.com
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SOURCE IBM