How can they measure the returns-on-investments of AI/ML projects while also apportioning budgets for sustainability and cybersecurity priorities, asks one survey
In a Feb 2024 quantitative survey of 750 Chief Information Officers* and IT leaders across 10 global markets on their views on navigating the complexities of today’s digital landscape and unlocking the full potential of their IT investments, some trends were observed.
First, 51% of CIO respondents indicated that AI/ML was “an urgent priority to address”, matched only by cybersecurity. Some 84% indicated they were being evaluated on business outcome metrics more than ever before.
Second, 80% of respondents were optimistic about AI’s impact: citing sentiments that “breakthroughs and developments in AI will have a significant impact on their business”. In addition, this group ranked new product lines (78%); corporate policy/ethical use (76%); supply chain (74%); IT teams’ technical skills (51%) as the most significant barriers to scale AI.
Third, 61% of respondents indicated they found it “very” or “extremely challenging” to demonstrate returns on investment (ROI) with tech investments. Also, 96% cited anticipating increased investment over the next 12 months; 42% indicated they did not expect to see positive ROI from AI investments for at least two to three years.
Sustainability and talent shortage factors
Respondents found sustainability to be a major component of their role. Some 38% indicated that was being de-prioritized as a result of the resources being pulled toward AI adoption. Ultimately, 78% of respondents indicated that “leveraging AI will make it easier to meet their organization’s IT sustainability goals.”
Also, 89% of respondents indicated concerns that, with the continued scaling of AI technologies, the role of human capital will become even more important. This group was expecting budget constraints, so increasing headcount to match AI ambitions could prove challenging.
Finally, 96% of respondents indicated they expected increased AI investments over the coming year. Some 20% expected overall IT budgets to grow by more than 10%. Overall,, respondents indicated that AI exploration and adoption was pulling resources and attention away from other key IT areas, including cloud adoption/digital transformation (48%), sustainability (38%), and employee compensation (38%).
According to Ken Wong, President, Solutions and Services Group, Lenovo, which commissioned the survey: “Today’s CIOs are working in a tornado of innovation. After years of IT expanding into non-traditional responsibilities, we’re now seeing how AI is forcing CIOs back to their core mandate” due to the promises of AI adoption and the pressure to “prove the value of these investments and deliver measurable business outcomes.”
*Comprising “a nearly equal number of respondents from each market”: Brazil, China, France, Germany, Hong Kong, India, Japan, Singapore, the United Kingdom, and the United States from organizations with at least 250 employees.
