Welcome to the Cloud Wars Minute — your daily news and commentary show, guest-hosted today by Acceleration Economy practitioner analyst Kenny Mullican. Each episode provides insights and perspectives around the “reimagination machine” that is the cloud.
This episode is sponsored by Acceleration Economy’s “Cloud Wars Top 10 Course,” which explains how Bob Evans builds and updates the Cloud Wars Top 10 ranking, as well as how C-suite executives use the list to inform strategic cloud purchase decisions. The course is available today.
In this episode, Kenny discusses findings from a recent IBM Institute for Business Value study on the state of the generative artificial intelligence (AI) market. The study evaluates the evolving priorities and challenges CEOs face in the age of artificial intelligence.
01:11 — Productivity is now CEOs’ top priority, and they recognize the importance of technology modernization in achieving their productivity goals. However, they face barriers as they race to modernize and adopt generative AI and other new technologies. In the IBM study, 75% of CEOs say generative AI is required for competitive advantage but they’re concerned about its potential risks and barriers.
01:59 — CEOs and their teams have different views of AI readiness. While 50% of CEOs say generative AI is already being integrated into their products and services, only 29% of their executive teams believe they have sufficient in-house expertise to handle it.
02:32 — To address this disconnect between CEOs and technology leaders, Kenny says CIOs and CTOs must do a better job educating top leaders on important tech topics. He also thinks generative AI advances have happened so fast that companies are scrambling to show they are on top of this fast-moving tech. But this isn’t realistic, as there are still too many factors to consider and hurdles to overcome before diving headlong into generative AI.
03:56 — The study also addresses what AI means for the job market. While 43% of CEOs have reduced their workforce or redeployed people due to generative AI, 46% have hired additional workers because of it. This indicates generative AI is fueling workforce changes, but not always negatively.
04:45 — In summary, CEOs recognize the critical role of technology — particularly generative AI — in driving productivity and gaining a competitive edge. However, lingering challenges include data security, bias, and expertise within organizations. Kenny says the IBM study highlights the need for thoughtful planning and assessment to unleash the full potential of generative AI.