Executives Aren’t Happy About AI Progress

A recent survey suggests that a majority of C-suite executives are waiting for the generative AI hype to cool down before integrating it into company workflows, but hesitating could be costly.

AI advances have experts weighing in on how advancements in the technology will impact everything from human resources to professional career development. It’s a murky topic that has employees and employers locked in a trust gap due to an unclear path forward at their respective companies.

A recent survey published by The Boston Consulting Group (BCG) of over 1,400 C-suite executives across 50 markets adds credence to these concerns. The survey reveals that 66% of executives are either ambivalent or dissatisfied with the progress their companies have made regarding AI and generative AI technology.

According to BCG’s report, the top three most compelling factors that are contributing to this dissatisfaction in AI progress among company leaders are:

A lack of talent and skills (62%).
Unclear AI and GenAI roadmaps and investment priorities (47%).
The absence of responsible AI strategies (42%).

The dissatisfaction among executives points to a growing need for employee upskilling in AI technologies. It’s reported by BCG that only 6% of companies in the survey have trained more than a quarter of their workforce in these tools — revealing a vast skills gap in the workforce that still needs addressing.

The data also reveals that while generative AI has the potential to completely change businesses and alter the nature of work, realizing this potential requires that professionals overcome major hurdles. A recent paper published by leading AI experts further suggest that the implications for the global workforce related to new skills training and automating work tasks are also profound.

The executives and companies showing hesitancy are perhaps waiting for more specific guidelines and guardrails from official policy makers. According to BCG, “More than 60% of executives surveyed say their firms are still waiting to see how AI-specific regulations develop.”

On the other hand, companies that are investing heavily in AI and GenAI are already reported to be seeing tangible benefits — with those planning to invest over $50 million in 2024 being 1.3 times more likely to witness cost savings, according to BCG. These “winning” companies are not only investing but also actively upskilling their workforce. They are also reported to be focusing on “productivity and top-line growth” by implementing responsible AI principles.