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Kearney, Futurum: Big enterprise CEOs make AI core to future

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Kearney, Futurum: Big enterprise CEOs make AI core to future

Research conducted by management consultancy Kearney and analyst The Futurum Group reveals that CEOs at high-revenue companies are increasingly prioritizing artificial intelligence (AI) in their business strategies. The study shows that European and North American CEOs believe they have a solid foundation for implementing AI programs.

The report emphasizes the importance of maintaining a focus on return on investment (ROI) and establishing robust data foundations for AI initiatives, cautioning against inflated optimism. The authors, comprised of three members from Futurum and seven from Kearney, advocate for a measured approach to AI roll-outs over large-scale, all-or-nothing implementations.

According to the study, titled Are CEOs ready to seize AI’s potential?, successful companies are led by CEOs who take a strategic, rather than hands-on, approach to AI strategy.

The research highlights a significant disparity between CEOs who have not seen tangible AI results and those who have achieved measurable success. The data shows that 92% of CEOs without AI results insist on leading the strategy themselves, compared to only 59% of CEOs in successful organizations. This suggests that centralized, top-down control may impede domain-level expertise and hinder cross-functional collaboration.

Interviews conducted as part of the study further revealed that when CEOs act as strategic guides rather than hands-on managers, resource allocation and ROI measurement become more effectively integrated into everyday business practices.

In 2024, the researchers surveyed 213 CEOs from companies with annual revenues exceeding $1 billion. Additionally, they interviewed 20 CEOs in November and December to gather insights on AI governance, change management, integration, and talent acquisition.

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Of the survey respondents, 28% were from Europe, 32% from North America, 16% from Asia Pacific, 12% from Latin America, 6% from the Middle East, and 6% from Africa.

AI investment a ‘necessity’

The study indicates that CEOs recognize the necessity of investing in AI, even in the absence of significant pressure from customers. While only 24% of CEOs cite explicit client requests for AI-based solutions, over half of them feel a strong internal drive to prepare for AI-driven disruption.

One CEO, representing a global staffing firm with a European headquarters, expressed a belief that AI will significantly impact the workforce in the coming years. They stated, “In three years’ time, things will drastically change when it comes to the impact of AI. We know that in a few years, we won’t need people to do the job. It will be AI-driven.”

The majority of CEOs surveyed agree on the strategic importance of leveraging AI for business transformation, yet only a quarter of them feel fully prepared to integrate AI across their organizations.

Pedestrian applications

The report notes that companies are taking incremental steps this year as they experiment with integrating AI into their business processes. For example, a CEO of a North American financial services company mentioned starting with basic applications like customer statement generation and regulatory processes.

Another CEO, from a global retail refrigeration solutions company, highlighted the importance of learning from small-scale experiences to inform broader AI applications, with a target year of 2025 for significant AI investments.

Similarly, a CEO from a clothing manufacturing company in Europe outlined a long-term plan for AI, focusing on innovation in fabric and machine development over a five-year period.

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While most leaders see AI as a catalyst for operational efficiencies and cost reduction, the report points out that few have fully mapped out how to leverage advanced capabilities for higher-impact use cases.

In the report’s foreword, Bill McDermott, chairman and CEO of ServiceNow, emphasizes the transformative potential of AI in enhancing human productivity.

Despite the push for AI adoption, the report underscores the value of a cautious and methodical approach. Organizations that adopt a measured, “fast-follower” strategy tend to achieve more consistent AI outcomes compared to those pursuing immediate, large-scale roll-outs.

The report also highlights regional differences in AI adoption strategies, with European CEOs showing a strong interest in specialized AI hiring and project management advice. North American organizations are making sustained progress in AI investments, focusing on workforce upskilling and talent availability.

Overall, the study reveals a shift towards AI-driven innovation in established business goals, with older firms prioritizing customer satisfaction and supply chain resilience, while younger companies concentrate on revenue growth and cost reduction.

Ethical risks

CEOs recognize ethical risks as significant barriers to AI adoption, including biased decision-making, privacy violations, and accountability gaps. However, fewer than half of the CEOs surveyed report having a formal AI governance framework in place.

One CEO, representing a food, beverage, and pharmaceutical equipment supplier in Europe, expressed concerns about the organization’s readiness to address AI failures and ethical issues.

While financial institutions prioritize security reviews in AI deployment, industries like consumer packaged goods and media may be more vulnerable. The report suggests that incorporating robust cybersecurity frameworks into AI roll-outs is crucial to address potential vulnerabilities as AI becomes more pervasive.

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Agentic AI on the CEO agenda

The report highlights the emergence of “agentic AI” as the next frontier in enterprise automation, with AI systems capable of autonomous action and decision-making.

Most CEOs surveyed anticipate agentic AI reshaping business decision-making processes rather than solely automating tasks. Some CEOs believe that AI will eventually replace their core business operations.

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