INTERNATIONAL: A new report highlights a growing sense of urgency among global CEOs regarding artificial intelligence (AI) adoption, revealing that nearly three in four executives fear for their positions if they fail to deliver measurable business gains from AI technologies. The findings underscore the heightened stakes as companies grapple with the complexities of integrating AI into their operations.
CEOs fear AI-driven job losses
Featured in the latest HRD Asia story, the survey, conducted by Dataiku and involving over 500 CEOs across the United States, United Kingdom, France, and Germany, paints a stark picture of leadership anxiety. A staggering 74% of executives expressed concerns about losing their jobs within two years if they don’t demonstrate tangible AI-driven business outcomes. The fear is not unfounded; nearly 70% of those surveyed believe that a failed AI strategy or an AI-related crisis could lead to a CEO’s ousting by the end of 2025.
These worries come at a time when reports suggest that AI’s immediate benefits may not be as easily realised as many had hoped. Gartner’s 2024 report revealed that many executives are struggling to unlock the value of generative AI, with at least 30% of AI initiatives expected to be abandoned by 2025. Gartner’s Aaron McEwan noted that organisations have entered a “trough of disillusionment,” where early enthusiasm about AI is giving way to the reality of its complex, costly, and sometimes disappointing implementation.
A gamble on AI decisions
The pressure on CEOs isn’t only about securing their jobs—it also reflects a growing unease over AI’s potential to harm employees or customers. According to the report, 80% of CEOs are concerned that poorly executed AI strategies could lead to negative outcomes, further exacerbating the high-risk nature of these technologies.
Florian Douetteau, co-founder and CEO of Dataiku, emphasised that CEOs are now viewing AI decisions as “high-stakes gambles.” He argued that turning AI into a lasting competitive advantage requires enhanced control and governance, not only to safeguard their companies but also to protect their roles in an increasingly AI-dominated economy.
The report reveals that 68% of CEOs are actively involved in making AI-related decisions within their organisations, reflecting the growing importance of AI in strategic leadership. Despite this, many leaders remain cautious, acknowledging that AI’s potential to drive significant value must be carefully managed.
Trust in AI grows, but governance remains critical
Despite the risks, there is a growing trust among CEOs in AI’s capabilities. An impressive 91% of executives believe that AI could provide equal or better counsel on business decisions compared to human board members. Additionally, 89% of CEOs feel that AI can devise strategic plans that match or exceed those developed by their executive teams.
This evolving confidence in AI comes alongside a notable shift in decision-making dynamics. A recent SAP poll found that 44% of US C-suite executives would override their initial decisions based on insights from AI. Furthermore, 38% admitted to trusting AI to make business decisions on their behalf.
However, as reliance on AI deepens, so too does the importance of governance. The report highlights that 80% of CEOs are confident in their company’s AI governance framework, particularly regarding data access and privacy controls. Experts suggest that establishing a robust governance framework is essential to regulate AI’s development and application effectively.
Key components of this framework include data security, transparency in AI decision-making, accountability in case of AI failures, and ongoing monitoring and adaptation to evolving technologies.
As AI continues to reshape the business landscape, CEOs are faced with the dual challenge of harnessing its potential while managing the risks associated with its adoption. The stakes are higher than ever, and for many leaders, the pressure to succeed with AI has never been more intense.