A worldwide survey of 2,500 C-level technology executives (tech CxOs) from 34 countries found that, in contrast to 69% in 2013, less than half (47%) of those questioned believed their IT organization was effective at providing fundamental services. Only 36% of CEOs and 50% of CFOs surveyed in 2019 think IT is effective for basic services, compared to 64% and 60% in 2013 and 50% and 50%, respectively.
“C-Suite Confidence in Delivering Basic IT Services Wanes,” according to a study conducted by IBM, while technology chief executive officers are concentrating on meeting the demands of the next generation of artificial intelligence.
C-suite executives’ faith in their IT team’s capacity to provide fundamental services is eroding, according to a new IBM Institute for Business Value survey, even as IT leaders are preparing their firms for an accelerated deployment of generative AI.
Simultaneously, according to 43% of IT CxOs polled, generative AI has enhanced their worries over the last six months regarding their IT infrastructure, and as a result, they are now concentrating on optimizing it for scalability. The hybrid cloud is presently costing respondents 29% more than AI, and in the next two years, they anticipate devoting half of their money (or 50%) to both.
According to two-thirds of CEOs surveyed, a solid relationship between the CFO and tech CxO is crucial to the success of their firm, with CxOs prioritizing infrastructure investments that are suitable for generative AI. There’s a disconnect, though: according to a survey, only 39% of tech CxOs and 35% of CFOs say they work together to integrate tech measurements into business cases and set strategic goals early in the IT planning process. The survey discovered that among high-performing tech CxO respondents, companies that link technology investments to quantifiable business outcomes enjoy a 12% boost in revenue growth.
Technology executives nowadays are juggling a number of demanding business requirements, which are made more difficult by the emergence of generative AI. According to Mohamad Ali, Senior Vice President, IBM Consulting, “They need to overcome the obstacles of advancing their generative AI capabilities and updating their IT infrastructure in order to maintain the company’s primary competitive edge.” “In this evolving AI landscape, the relationship between tech CxOs and their finance counterparts has never been more important, aligning technology spend with business results to ensure that AI investments yield true benefit.”
While tech CxOs prioritize responsible AI, there is a discrepancy between goal and implementation
- Most CEOs (80%) who responded to the study said that building trust depends on being transparent about how their company uses next-generation technologies like generative AI.
- However, the majority of CxOs in the IT industry admit that their companies are not doing enough to implement fundamentally sound AI processes at scale:
- Of those surveyed, only half (50%) believe they are providing explainability, and even fewer claim they are providing privacy (46%), openness (45%), and fairness (37%). AI is supposed to be responsible.
- Concerns about regulation and compliance as a roadblock to generative AI have grown, according to a poll of IT CxOs, which found 41% of them.
- But unlike CEOs, who view regulatory reform as a threat, most IT CxO respondents (70%) see it as an opportunity.
The demands of the generative AI era are forcing IT CxOs to reevaluate their firms’ talent strategies
- Recruiting, nurturing, and retaining exceptional personnel is critical to a company’s competitive advantage, according to 63% of tech CxOs questioned.
- But just 27% of respondents rank talent as their top priority, and 58% of IT CxOs cited problems filling critical technology roles in their poll.
- Tech leaders predict a sharp increase in talent shortages in the next three years in several critical areas, such as cloud(+36%), AI(+29%), security(+25%), and privacy (+39%).
- Among those surveyed, 40% said that within the previous six months, their concerns have grown.
- When asked what prevents them from investing in technical talent, more than half (54%) of the tech CxOs cited budgetary constraints.
- Many CxOs in the tech industry who were surveyed (69%) stated that they are looking to business partners for specialized talents.
What is artificial intelligence?
Computers and other devices may now mimic human learning, comprehension, problem-solving, decision-making, creativity, and autonomy thanks to a technology known as artificial intelligence (AI).
Object recognition and vision are capabilities of AI-enabled apps and gadgets. They have linguistic comprehension and reactivity. From fresh knowledge and experience, they can gain knowledge. To both specialists and users, they can offer thorough advice. Self-driving automobiles demonstrate how they can operate without human input.
However, in 2024, most AI headlines and academics and practitioners will focus on generative AI (gen AI) advances, which create original text, photographs, videos, and other content. In order to comprehend generative AI completely, one must first grasp machine learning (ML) and deep learning, the two technologies that form the foundation of generative AI tools.
