IBM: AI Challenges and Opportunities for Business Leaders

Inspiring a shared vision and facilitating collaboration between departments like finance and technology are critical for a smooth transition. Overall, CEOs say 35% of their workforce will require retraining and reskilling over the next three years – up from just 6% in 2021.

Workforce transformation on the horizon 

While 58% of CEOs are hiring for generative AI roles that didn’t exist last year, over half haven’t assessed the workforce impact yet. 35% anticipate reskilling or redeployment needs within three years. Attracting AI talent is challenging, with 50% struggling to fill key tech positions.

Governance gaps raise risks 

Although 75% agree governance should be built-in during design rather than after deployment, only 35% currently have robust generative AI governance. 71% say trusted AI requires effective governance, yet 64% are willing to take bigger risks than competitors to stay ahead. Balancing risks and rewards will be imperative.

Short-term focus hinders long-term innovation

While CEOs prioritise productivity and innovation, 44% would sacrifice operational efficiency for greater innovation. However, short-term performance pressures remain the top barrier. Finding the right balance between immediate goals and future transformation will be key.

As generative AI rapidly evolves, businesses face a profound shift in workforce needs, cultural mindsets, governance frameworks, and innovation strategies. Navigating these challenges proactively while capitalising on AI’s potential will separate leaders from laggards in the emerging generative AI-powered economy.

“Our report features six hard truths for the CEOs who recognise they cannot run the business of tomorrow with the skills, processes or mindsets of today,” says Rahul Kalia, UK & Ireland Managing Partner at IBM Consulting. “For technology to transform the business, first the business must evolve. Success with Gen AI will depend more on employee engagement and a culture of innovation than the technology itself.”