Seven in ten CEOs say AI is already changing their core business, but only 10% say it's driving growth

A recent study by the IBM Institute for Business Value reveals that nearly 70% of CEOs acknowledge that artificial intelligence is reshaping their core business operations. However, despite this optimism, only 10% of these leaders believe that AI is significantly driving growth within their organizations. Conducted between February and April 2023 and involving 2,000 CEOs across various industries and regions, the survey shows a stark contrast between expectations and reality. Two years prior, 49% of executives had anticipated that generative AI would be a primary growth driver by 2026. The sharp decline to just 10% today highlights a troubling disparity in perceived benefits versus actual impact. Consequently, productivity and profitability have surged to the forefront of CEO priorities, overtaking AI and technology modernization, which have dropped to second place. One of the most notable shifts in the landscape is the rise of Chief AI Officers (CAIOs). The 2026 report indicates that 76% of organizations now have a CAIO, a significant increase from just 26% the previous year. These leaders are expected to play a crucial role in guiding AI initiatives and decision-making processes by 2030, emphasizing their influence in steering AI priorities rather than merely reporting on outcomes. The study also reveals that AI is taking a more autonomous role in business decision-making. Currently, AI is responsible for 25% of operational decisions without human involvement, particularly in areas such as pricing and inventory management. This figure is expected to nearly double to 48% by 2030, indicating a trend toward greater reliance on AI for critical business functions. Moreover, confidence in AI's capability to inform strategic decisions is rising, with 64% of CEOs now willing to base major decisions on AI-generated insights. This marks a shift from 2025, when a majority of leaders expressed concerns about the risks associated with using generative AI for core business functions. The report underscores that competitive advantage in the AI era will derive not simply from which models firms adopt but from how effectively they integrate proprietary data and customizations into their AI systems. Currently, 39% of CEOs report using pre-trained models, but this is expected to decline significantly as companies pivot towards hybrid strategies that incorporate both custom and foundation models. Despite the enthusiasm surrounding AI, a deployment gap persists. CEOs estimate that only 25% of employees regularly use AI in their roles, although 86% believe their workforce possesses the necessary skills to collaborate with AI. The report suggests that addressing this gap is more about organizational design than skill deficits. The findings also reveal a positive sentiment among employees regarding AI, with many believing it enhances their roles by reducing repetitive tasks. As companies work to redefine the integration of human and machine intelligence, those who have strategically redesigned their core business functions are significantly more likely to achieve their desired outcomes.