Nearly one in four (39%) UK chief information officers (CIOs) is concerned about the growing gap between board expectations and the practical capabilities of AI within their organisations, a new survey has found. According to the poll by Expereo, a third of technology leaders globally also believe that their boards hold unrealistic expectations or demands about the impact of new technologies such as AI on business performance. This survey, conducted by IDC and encompassing 650 technology leaders from Europe, the US, and APAC, reveals significant obstacles in realising AI’s full potential in the business landscape.

“As global businesses embrace AI to transform employee and customer experience, setting realistic goals and aligning expectations will be critical to ensuring that AI delivers long-term value, rather than being viewed as a quick fix,” said Expereo CEO Ben Elms. “While the potential of AI is immense, its successful integration requires careful planning.”

The survey indicates that AI is increasingly viewed as a cornerstone of business strategy, with 88% of UK CIOs believing it will be essential to meeting business priorities within the next 12 months. However, this confidence is offset by concerns among 39% of CIOs who argue that board-level expectations of AI’s impact are not viable and may not align with current technological capabilities.

Although enthusiasm for AI is growing, just 14% of UK businesses report that AI has underperformed expectations so far. However, infrastructure inadequacies pose a formidable barrier to effective AI implementation. Almost half of UK organisations, 47%, acknowledge that their existing network and connectivity infrastructure is ill-prepared to support AI and other future tech initiatives. Further complicating matters are network performance issues, cited by 49% of respondents as a limitation to executing large-scale data and AI projects effectively.

Governance, ethics, and workforce concerns

In addition to technical challenges, AI faces other hurdles such as governance and ethical considerations. These are significant barriers for 41% of UK businesses, reflecting the broader concerns around AI ethics and data privacy. Employee resistance also plays a role, with 30% of businesses observing pushback from staff concerned about AI’s impact on jobs, while 32% struggle to keep pace with the rapid technological advancements AI brings.

External partnerships are another critical area of concern, as 29% of UK CIOs indicate that their current technology partners lack the necessary expertise to support effective AI initiatives. This shortfall in external capabilities forces organisations to rethink their strategies to ensure successful AI adoption.

Despite these myriad challenges, the focus on AI has positively elevated the status of technology leaders within organisations. The survey shows that 76% of UK tech executives report an increased profile at the board level, up from 60% in the previous year, due to the emphasis on AI. This suggests a commitment to overcoming these obstacles, underscoring the strategic importance of AI in the future business landscape.

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