Are CIOs at the Helm of Leading Generative AI Agenda?
2024 EY CIO Sentiment Survey Highlights CIOs’ Involvement in Gen AI Execution
The growing integration of generative AI into corporate technology and information infrastructures is likely to bring a notable shift to the role of CIOs. While many technology leaders are already spearheading gen AI adoption, their role goes beyond technology management. It now includes driving strategic growth and maintaining a competitive edge in an AI-driven landscape.
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The 2024 EY CIO Sentiment Survey, conducted in partnership with Oxford Economics, emphasizes the critical challenge for CIOs: whether to take the lead in shaping the gen AI agenda or risk falling behind. While some forward-thinking CIOs are spearheading this new frontier, nearly half of the survey respondents remain cautious, with many yet to fully embrace the gen AI movement.
The CIO role has evolved significantly over recent decades. Once focused primarily on maintaining system uptime and availability, CIOs now serve as key business enablers. As technology advances rapidly and organizations increasingly rely on IT, the CIO's influence on enterprise success continues to grow.
CIOs Lead the Gen AI Agenda
According to the EY survey, CIOs who report directly to the CEO and co-lead the AI agenda are the most effective in driving strategic change. Sixty-three percent of CIOs are leading the gen AI agenda in their organizations, with CEOs close behind at 55%. Eighty-four percent of organizations where the gen AI agenda is co-led by the CIO and CEO achieve or anticipate achieving a 2x return on investment from gen AI, compared to only 56% of organizations where the agenda is led solely by CIOs.
The survey also found that CIOs acknowledge the need to adapt their roles as new technologies emerge and are gaining greater organizational support to drive change. While many CIOs are eager to use gen AI and other emerging technologies for growth, only 34% see technology as the primary driver of growth, innovation and resilience. This gap suggests that many CIOs may be overlooking an opportunity to take on a more strategic role - one that redefines how organizations perceive and utilize technology.
For CIOs who fully embrace digital initiatives, the results are compelling. Organizations where CIOs lead the development of new digital businesses report a 24% higher success rate than others. The likelihood of success increases by up to 79% when CIOs have full responsibility, compared to those with a more limited or no role.
Balancing Hype With Reality
The survey also found that only 49% of CIOs believe that gen AI will significantly boost their organization’s value. This restrained optimism might be attributed to the underdelivery of previous technological breakthroughs such as metaverse, blockchain and quantum computing.
CIOs are taking a measured approach to gen AI, considering factors like data availability, cybersecurity and skill gaps.
Doubling Gen AI ROI
The survey recommends a decentralized approach with a center of excellence to advance the gen AI agenda, potentially co-led by the CIO. This model provides centralized support, expertise and executive decision-making, while ensuring consistent gen AI adoption with unified guidelines. The CoE also helps secure partnerships to further develop the gen AI platform. Forty-two percent of organizations expecting a 2x ROI from gen AI are using this decentralized model with a CoE.
The gen AI market is projected to grow from $36.06 billion in 2024 to $356.10 billion by 2030. This presents a critical juncture for organizations - those that proactively integrate the technology into their operations and those that remain hesitant, risking falling behind as the AI landscape evolves.
