Study Reveals Businesses' Failures in Providing Essential IT Services

As generative AI gains traction in the corporate world, a new study reveals a decline in IT departments' ability to deliver basic services to enterprises. The research, conducted by IBM and Oxford Economics, surveyed 2,500 C-suite executives across 34 countries, including technology officers and data leaders. Surprisingly, less than half (47%) of these leaders reported their IT teams as effective in providing basic services - a notable drop from 69% in 2023.

A separate IBM study highlighted that 80% of CEOs emphasized the importance of transparency in utilizing next-generation technologies like generative AI to build trust. Despite this, only half of technology leaders acknowledged delivering essential responsible AI capabilities such as explainability, privacy, transparency, and fairness.

Mohamad Ali, Senior Vice President of IBM Consulting, emphasized the complex landscape tech leaders face today due to the proliferation of generative AI. He stressed the significance of modernizing IT infrastructure and effectively scaling AI to boost the organization's competitive edge. Ali underscored the vital collaboration between tech CxOs and finance counterparts to align technology spending with business objectives for optimal ROI on AI investments.

Concerns around technology infrastructure have magnified in recent months with the rise of generative AI, prompting technology leaders to prioritize infrastructure optimization for scaling purposes. Regulatory and compliance issues have emerged as a prominent barrier for over a third of tech executives, but many view regulatory changes as opportunities. Nonetheless, only half of CEOs perceive regulatory shifts in a positive light.

Looking ahead, most tech leaders acknowledge that their competitiveness hinges on attracting, nurturing, and retaining top talent, despite facing challenges in recruiting for key technology roles. To bridge this skills gap, a significant number of business technology leaders are leaning towards business partnerships as a valuable talent source, as indicated by the study's findings.