EY Survey: Global CEOs Confront Challenges and Uncertainties of Generative AI

A recent EY survey reveals that more than two-thirds of CEOs globally recognize the urgent need to embrace generative AI. Despite this urgency, a similar proportion of these leaders feel "stymied" by the uncertainties surrounding this technology. Many are grappling with the overwhelming array of potential use cases and are struggling to formulate a cohesive strategy tailored to their organizations' needs.

The survey, which included responses from 1,200 CEOs, highlights a significant gap in clarity regarding investment priorities and potential partnerships. However, there is a consensus: 70% believe immediate action is essential to remain competitive, and an equal percentage acknowledges that generative AI will soon disrupt their existing business models.

In a separate analysis focused on U.S. CEOs, similar trends emerged. While 62% recognize the necessity of deploying generative AI to remain competitive, a significant 61% express feeling trapped in a "quandary" due to the uncertainties surrounding the technology. These uncertainties encompass various factors including rapidly evolving capabilities, potential costs, ethical considerations, and forthcoming regulations.

U.S. CEOs are particularly challenged by the decision-making process regarding generative AI implementation. Key questions arise: Should they adopt open-source or proprietary models? Is it better to buy, build, or partner with existing AI providers? Adding to the complexity, 55% of CEOs report difficulties in assessing the credibility of AI companies as potential partners or acquisition targets.

Despite these challenges, the majority are nevertheless planning to make substantial investments in generative AI. The survey indicates that 37% of executives will reallocate funds from other investment budgets, while 34% plan to raise new capital. Additionally, 26% are set to divert resources from technology budgets to support their generative AI initiatives.

As the landscape of generative AI continues to evolve, CEOs are urged to carefully navigate these uncertainties, build robust strategies, and invest wisely to harness the transformative potential of this technology. The pressing need for clarity and direction in the generative AI realm could determine which organizations thrive in the next wave of innovation.