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1、iCEO decision-making in the age of AIGlobal C-suite Series 28th Edition The CEO StudyIBM Institute for Business ValueAct with intentionCEO decision-making in the age of AIKey takeaways3Introduction5Part One:How CEOs make decisions11Part Two:Applying decisions across the organization23Part Three:What
2、 decisions matter most?31Part Four:Better decisions for a better world39Action guide42Research and analysis methodology44Notes and sources461Table of contentsAbout the studyThe IBM Institute for Business Value,in cooperation with Oxford Economics,interviewed 3,000 CEOs from 30+countries and 24 indus
3、tries as part of the 28th edition of the IBM C-suite Study series.These conversations,completed from February through April 2023,focused on executives perspectives on leadership and business;their changing roles and responsibilities;and CEO decision-making today,including key challenges and opportun
4、ities,their use of technology,data,and metrics,and their visions for the future.Insights were also drawn from numerous client conversations including more than a dozen deep-dive interviews with CEOs conducted explicitly for this study from March through May 2023.30+Countries3,000+CEOs24Industries3CE
5、Os are weighing unprecedented urgency and risk.With a host of new decision-making inputsfrom a growing amount of data to a widening pool of increasingly involved stakeholdersits no wonder 44%of CEOs regret a public stand theyve taken over the last three years.Generative AI changeswell,everything.Thr
6、ee out of four(75%)CEOs believe the organization with the most advanced generative AI wins.Already,43%of CEOs are using generative AI to inform strategic decisions.CEOs feel their organizations are ready for generative AI.Other executives are not as confident.69%of CEOs see broad benefits of generat
7、ive AI across the organization but only 29%of their executive teams feel they have the in-house expertise to adopt generative AI.2 out of 3 CEOs are acting without a clear view of how to help their workforce with the disruption and inevitable transitions AI will bring.Fewer than one in three CEOs sa
8、y they have conducted an assessment on the potential impact of generative AI on their workforce,yet are using it already.A lack of clarity is impeding decision-making and investments.More than half(56%)of CEOs say they are delaying at least one major investment due to a lack of consistent standards.
9、CEOs face a lack of consistent standards,particularly in emerging areas such as sustainability and data and privacy.Key takeaways3254Any decision that makes its way to the CEO is one that involves high degrees of uncertainty,nuance,or outsize impact.If it was simple,someone elseor something elsewoul
10、d do it.As the world grows more complex,so does the nature of the decisions landing on a CEOs desk.It used to be easier:CEOs relied on primarily financial results and operational reports,combined with intuition and experience,to make decisions about the next best move for their organization.Thats no
11、t enough anymore.Ask CEOs about their most challenging issues now and top-of-list items move far beyond financials into complex issues that require a host of inputsAI;sustainability;cybersecurity;diversity,equity,and inclusion;stakeholder management.CEOs tell us its almost crushing.It is an epic cha
12、llengeIntroduction“Generative AI models surprise,impress,and scare us,all at the same time.”Gonzalo GortzarCEO,CaixaBank76Enter generative AI And now,generative AI has burst into the scene a technological tool that promises,potentially,to deliver answers to even the most vexing questions,instantaneo
13、usly.With advanced analytics and deep data,CEOs can now turn to artificial intelligence to gather insights and direction.It may be tempting for enterprise leaders to see generative AI as their magic wandenter a few prompts and seconds later have a compelling rationale that supports any decision.Exce
14、pt of course it doesnt work that way.But thats not stopping stakeholders from pressuring executives to use it.Investors are still the most heavily biased toward acceleration,but a slightly higher percentage of board members are pressuring CEOs to accelerate adoption(see Figure 1).As CEOs respond to
15、the pressure to accelerate AI adoption,their teams are more hesitant.CEOs firmly believe in the benefits of generative AI across their organizations but other executives cite a lack of in-house skills.CEOs(74%)agree or strongly agree that their team has the knowledge and skills to incorporate new te
16、chnologies such as generative AI.Just 29%of other executives,though,agree that their organization already has the expertise in-house to adopt generative AI and only 30%agree that their organization is ready to adopt generative AI responsibly.Q:To what extent are the following stakeholder groups appl
17、ying pressure to slow or accelerate adoption of generative AI?Note:Respondents were not asked to indicate the direction of pressure if they identified a stakeholder group as applying little to no pressure around generative AI.Figure 1 Pressure to accelerate AI adoption runs highPressure to accelerat
18、ePressure to slow7Decision-making has become an epic challenge in an environment where nuance and compromise are seen as weaknesses.Todays stakeholders show no tolerance for missteps.Seemingly everyone from shareholders,employees,and the media hurl“Why that?”assaults no matter what decision a leader
19、 makes.Yet,77%of CEOs say they feel compelled to take a stand on potentially controversial issues;61%say the same even when they dont see clear financial gain for their organization.And its no wonder 44%of CEOs say they regret a public stand theyve taken in the last three years.1 Leading can feel li
20、ke a no-win situation.Intentionality matters more than ever.In this environment,advancing a strategic roadmap is also more essential than ever.Its not action that matters most,but output.And the right outputs depend on the right decisions.Investors/creditors/lendersEmployeesMedia or pressBoard membe
21、rsNGOs/advocacy groupsGovernment/regulatorsCustomersBusiness partners66%10%64%1%55%28%55%16%53%15%49%18%49%16%48%26%As CEOs respond to the pressure to accelerate AI adoption,their teams are more hesitant.98To address this pivotal inflection point,the IBM Institute for Business Value(IBM IBV)has unde
22、rtaken its most complex and far-reaching CEO study.We have surveyed more than 3,000 CEOs and public sector leaders globally about their key decisions and processes,what matters most now,and what they see ahead in the next three years.We determined what separates CEOs who are making decisions most ef
23、fectively from those who are becoming increasingly bogged down by uncertainty.We also explored,with a select group of CEOs,how generative AI is impacting decision-making not only in the C-suite but throughout their organizations.We talked in depth with CEOs across multiple industries about what its
24、really like to lead in this environment,as the situation unfolds.What follows is a roadmap for leaders,based on conditions right now,on how their decision-making must evolve and adapt.Our analysis explores a few key themes:Across this analysis we delve into executive-level strategies,as well as orga
25、nization-wide adjustments impacted by AI and other data-fueled tools.None of us has a crystal ball,but its not simply knowing the future that makes you successful.Its what you do with what you know.2 High-performing CEOs are navigating not only what is possible to know,but how to laser-focus on sepa
26、rating the signal from the noise.3,000 CEOs from around the globe share their thoughts and experienceBetter decisions for a better worldHow CEOs make decisionsApplying decisions across the organizationWhat decisions matter most?“The biggest feature of turbulent times is the increase in uncertainty.A
27、 large part of growth comes from dealing with that uncertainty.”Company Chairman,Asia Pacific10How CEOs make decisionsThe decision-making burden on CEOs has always been heavy.Broader digital accessibility and new tech tools have unleashed a wave of innovation,forcing leaders to make decisions and ac
28、t more quickly than ever to stay ahead of the tide.An explosion of real-time data supplements traditional financial and operational metrics and provides an ever-broadening array of information.While often useful and occasionally instructive,the swell of continuous inputs from so many sources can bec
29、ome overwhelming.Yet,top CEOs consistently use a range of decision-making inputs and are more than 13x as likely as their peers to rank their enterprise dashboard as excellent at providing insight.Part One111312External conditions have made CEO challenges even more complex.From the COVID-19 pandemic
30、 to climate change,increasing cyberattacks to shifting workforce expectations,CEOs face decision-making that goes well beyond traditional shareholder value models and their own personal experience.Unpredictable,asymmetrical situations are arising more frequently,involving more factors and more stake
31、holders.In Greek mythology,Hercules slayed Hydra,the many-headed serpent,but each head he removed was replaced by two others.3 In similar fashion,CEO decisions center on increasingly complex and fast-changing topics that frequently involve an ethical or moral componentand deciding on one topic can c
32、ause other issues to rise to the fore.Adding to these challenges,CEOs face a lack of standards around decision-making,particularly in emerging areas such as sustainability and data and privacy.CEOs tell us common standards could help smooth the way,speeding decision-making throughout the organizatio
33、n.Its no surprise that CEOs are drawn to inputs that promise to simplify or accelerate decision-making,such as data-driven,AI-backed toolsand yet here,too,the complications intensify.Generative AI,in particular,when asked a question,often expresses itself with certainty,but sometimes“hallucinates”it
34、s answer.AI trained on generic datasetsAI that lacks transparency in its logiccould function as an opaque engine of mistakes and misinformation,hampering rather than helping CEO decision-making.Because generative AI amplifies both the good and the less-than-ideal that exists in any organization,it n
35、eeds to be applied in line with a cohesive strategy rather than as a fix for a multitude of ad hoc situations.The majority of CEOs believe the most advanced generative AI winsIn many ways,one of the most critical decisions CEOs face right now is whether and how to use AI in their own decision-making
36、 and throughout their enterprises.With the public explosion of generative AI tools,the phrase“AI”has become dominant in press accounts as well as quarterly earnings calls,in a way no CEO can afford to ignore.Some companies have seen billions in valuations evaporate after mentioning the threat of AI;
37、others have pointed to AI as the holy grail for their future.4The rush to action is understandable.Three-quarters of CEOs(75%)believe that the enterprise with the most advanced generative AI will win and they say competitive advantage depends upon it.As they race toward AI superiority,43%of CEOs say
38、 their enterprises are already using generative AI to inform strategic decisions,36%for operational decisions,and 50%are integrating it into their products and services.Yet CEOs must also weigh this“act-now”pressure against potential dangers such as bias,ethics,and safety.More than half(57%)of CEOs
39、are concerned about the security of data and 48%worry about bias or data accuracy.CEOs wrestle with charging boldly into a still emerging space or acting with greater caution and risk being left behind.There is nothing simple about this conundrum:how to address AI in all its manifestationsfrom gener
40、ative AI to intelligent automationeven as the tradeoff of benefits versus drawbacks is still unfolding.As President and CEO of American Honda Motor Co.,Inc.,Noriya Kaihara,puts it,“So,the question we ask is:can we use the technology to help people get things done?Can we use the technology to help pe
41、ople achieve their potential?Thats what we are trying to do.Technology should help make our business simpler and easier.But,we are always thinking about the consequences of using each technology.”of CEOs lack consistent standards in one or more areas of strategic focus61%56%while12are currently dela
42、ying a major investment pending greater clarity around standards and regulations151415How CEOs decide what inputs matter CEOs draw from a variety of inputs when making strategic decisions.An increase in the amount of data they must consider from newer areas like ESG,added to a growing number of exte
43、rnal inputs,means there is just more to consider than ever before.In our global survey,most of the CEOs report that they still rely prominently on operational data(76%)and financial data(75%).Yet more than three out of four CEOs stress that the most important decisions cannot be made on data alone.I
44、n fact,63%of the CEOs turn to input from their people,and over half(54%)include personal experience and intuition in the mix(see Figure 2).Figure 2 What inputs do CEOs use to make decisions?Q:How often do you rely on each of the following sources of information when you make strategic decisions?(%re
45、flects responses for“Most of the time”or“Always”).76%Operational data75%Financial data63%Internal input54%Personal experience50%Thought leadership42%Other enterprise data38%External input34%ESG data“So,the question is:can we use the technology to help people get things done?”Noriya Kaihara President
46、&CEO,American Honda Motor Co.,Inc.1475%of CEOs believe that competitive advantage will depend on who has the most advanced generative AI43%are using generative AI to inform strategy decisions50%of CEOs are integrating generative AI into products and servicesAlready,And141716“Sometimes you must reali
47、ze that a situation cannot wait for more relevant data and take action with what you have at hand.With the data that exists,you have to decide at that moment because you cant wait six months to have the right data set,or the right tools,or the right process.”Fabin Hernndez CEO,Movistar ColombiaThrou
48、gh our research and interviews,we sought to understand what sets apart the CEOs who are most successfully navigating todays complex decisions.When we looked at our high-performing group through a financial lens,they deliver far better results than their peers,with 2023-2025 projected annual revenue
49、growth 21%higher than the average respondent and annual operating margins 24%higher.But two other key elements also rose to the top.First,these CEOs have high confidence in their digital infrastructure and data,and they believe those capabilities enable better investments and higher efficiency in de
50、livering value.But they also express a strong conviction that the most important decisions a CEO makes cant be made on data alone.This group of decision-makers is more than twice as likely as their peers(65%versus 28%)to strongly agree that metrics are driving organizational behaviors,and they say m
51、etrics give them a full understanding of organizational performance and health.They have effective lines of communication with key stakeholders and are confident they are well-positioned going forward.“Decision-making based on intuition,common sense,and knowledge is very good and should never be los
52、t.But the more analytic support we have,the better.”Gonzalo Gortzar CEO,CaixaBank171918Pushing smart decision-making into the organization United Arab Emirates-based Majid Al Futtaim Retail is a franchisee for French grocery retailer Carrefour,operating some 450 Carrefour locations in 16 countries a
53、cross the Middle East,Africa,and Asia,serving 750,000 customers daily and employing 37,000 team members.Shopping patterns and purchasing behaviors are very different across Majid Al Futtaims store footprint.With a mix of consumers representing many nationalities,the company struggled to match demand
54、 and store-item assortments.For analytics,Majid Al Futtaim relied on an on-premises data warehouse solution that required significant manual intervention.SQL script coding was too slow to stay ahead of growing data demands and market complexity.Majid Al Futtaims leadership committed to more sophisti
55、cated data-driven decision-making to enable faster real-time adjustments.They implemented a hybrid cloud data and analytics platform architecture,a unified data hub for advanced analytics,and data-model development with built-in governance capabilities.Majid Al Futtaim is now able to make in-store c
56、hanges faster and more precisely.With more advanced analytics and less time spent managing data,the company can test scenarios with a fail-fast mechanism,use data science tools to evaluate models,and ultimately get to market more quickly.The turnaround time for responding to business requests has im
57、proved by 100%.Case study19Challenge:Solution:Results:Whats perhaps most telling is how CEOs make strategic decisions amidst uncertainty.Its not that data doesnt matter.These CEOs emphasize that clear metrics drive outcomes from investor confidence to regulatory compliance to employee recruitment.Bu
58、t they are not looking solely at the numbers.In fact,they are far more likely than CEOs overall to use a broad range of planning approaches,including forecasting and modeling,scenario-based planning,benchmarking,and data mining.Lawrence Lam,CEO of Prudential Hong Kong,describes his approach:“We make
59、 data work for us,not vice versa.Our corporate focus is customer centricity so the right mindset about data is built on customer centricityknowing what customer pain points we want to solve,what data is relevant to drive that transformation,and where that data is available or not.”CEO Fernando Gonzl
60、ez of Mexico-based building materials giant Cemex explains how he approaches different types of decision-making:“The orthodox response is that decisions should be data-driven.In many situations,this works.You adjust plant operations based on datafor example,an oven temperature should be based on dat
61、a,not opinion.But in other situations,it is not as clear-cut.For example,deciding on an investment requires data but also other variables.How much do I trust the source of the information?Is the criteria behind the data correct?There are other reasons besides data behind some of my decisionsand I ne
62、ed to know when enough data is enough.”CEO Dirk Adelmann of German-based mobility firm smart Europe GmbH says he uses data but balances that approach by tapping into human experience and wisdom frequently:“If you start asking the right questions,you will see that the ideas are coming quite naturally
63、 from your teams.When I ask one person a question,two others are listening in and also have an answer.That is much more effective than me always giving choices for the direction we should go.”“The orthodox response is that decisions should be data-driven.In many situations,this works.in other situat
64、ions,it is not as clear-cut.”Fernando Gonzlez CEO,Cemex2120What is the top barrier to AI adoption?When CEOs struggle over adopting generative AI,their first concern is data.Without trusted,reliable data,even the best AI will deliver faulty,biased,or dangerous results.Yet getting your data house in o
65、rder is no small task,and for many enterprises one that is far from complete.The top barriers:data lineage and provenance,a lack of proprietary data to customize,and security concerns.Data concerns,however,reach beyond generative AI.Organizations have faced data challenges for years.In our research,
66、top-performing companies in revenue,growth,and tech maturity focus on data standards and quality in ways that lagging peers fail to.The best CEOs know that,while not glamorous,fixing data shortcomings is an essential priority for competitive advantage.PerspectiveBiggest barriers to generative AI ado
67、ptionConcerns around data lineage or provenance61%Constrained by regulation/compliance53%Concerns about security of data57%Overall data challenges for the organization2120Unclear data calculation and reporting across suppliers/partnersUnclear data calculation and reporting in your organizationDiffic
68、ulty identifying meaningful insightsPoor visibility into data sources and qualityQ:To what extent do you face the following data challenges today?(%reflects responses of a“great”or“very great”extent).Inconsistent standards/formats/frequencies across datasets41%40%40%37%36%The external forces impacti
69、ng CEOs over timePerspectiveThe most important external forces impacting CEOs and their organizations have varied since 2004,when the IBM IBV conducted its first CEO study.Technology steadily rose,peaking in 2012,and has remained fairly steady ever since as a top factor.Workforce and skills have bee
70、n more variable,but appear to be rebounding as an issue of growing importance.And regulatory factors have been on a fairly steady climb since the studys inception,clocking into second place this year.48%|Technology factors44%|Regulatory factors43%|Market factors36%|Workforce and skills31%|Environmen
71、tal issues30%|Socio-economic factors29%|Globalization22%|Geopolitical factors20%|Macro-economic factors20 04 20 05 20 08 20 10 20 12 20 13 20 15 20 17 20 19 20 21 20 22 Q:Which of the following external forces will most impact your enterprise over the next 3 years?20 23 Technology and regulation con
72、tinue to significantly impact organizations,while workforce and skills are rebounding2322Applying decisions across the organization CEOs cannot just focus on the way they make their own decisions.Good Deciders-in-Chief also guide decision-making across the organization.They set a framework for how d
73、ecisions are made up and down the line,and how information about those decisions flows.“If there are too many levels from the CEO to the grassroots employees,”observes a chemicals company chairman,“all the information that should be transmitted to the upper level will be lost.”The same intentionalit
74、y that CEOs apply to their own decision-making must be baked into the decision-making systems across an enterprise.“It is ultimately up to me to make sure that the organization adopts analytics in the way that is appropriate,”says CaixaBank CEO Gortzar.Part Two232524Managing AI from the bottom upOur
75、 research shows that employees are already using generative AI platforms in their workwhether thats approved by executive leadership or not.5 Done within a well-designed system,this can dramatically accelerate speed to insight and how quickly organizations can act on those insights.But it requires A
76、I that“shows its work”to avoid misinformationmeaning AI that allows transparency into how it generated its insightsas well as a platform that enables secure use of proprietary information.Koichi Kameda,CEO of retail business Trial Holdings,Inc.,explains:“The companys basic premise is to solve custom
77、ers problems,and it intends to explore what technologies can be used for what purposes in order to achieve this goal.”In all functional areas,generative AI use cases are ahead of formal business plans for generative AI.This trend indicates many companies are still in exploration mode.We asked CEOs a
78、bout more than a dozen corporate functions and in every category,at least three-quarters of CEOs expect to have at least one use case complete and ready to deploy within the next 12 months.Creating rules around generative AI can optimize the benefits while protecting ethics,avoiding bias,protecting
79、intellectual property,and so on.Yet just one in four CEOs in our survey say they have issued any guidance on the use of generative AI within their organization.Some CEOs are now issuing moratoriums or bans on its internal use,particularly in industries such as financial services,technology,and commu
80、nications.6 What remains to be seen is where they go from herewhether or not this is just a temporary pause while they determine appropriate security,guardrails for use,and foundational models.Meanwhile,teams are developing specific use caseswithout an overarching organizational plan.In manufacturin
81、g,for instance,34%of organizations have generative AI use cases ready,versus just 19%with formal plans.25of CEOs have generative AI use cases completed or under development in critical functions 84%To get ahead of this wave,top CEOs are initiating and deepening conversations with their teams about t
82、he use of AIto both remove roadblocks to progress and to ensure safety measures are in place and promote responsible AI.They need guardrails that align with the organizations values and standards.They also need team members who have AI skills.“Acquiring digital experts is one of our biggest challeng
83、es,and Im sure this is a challenge for all industries,”says Tomoyuki Takaya,CEO,Cardif Assurances Risques Divers Japan/Chief Marketing and Transformation Officer,BNP Paribas Cardif Japan.“We need to be more flexible to secure digital talents,for example,through collaboration with our ecosystem partn
84、ers and other industry players.”CaixaBanks Gortzar was frank about the mixed emotions AI exploration is causing:“Generative AI models surprise,impress,and scare us,all at the same time.”70%of CEOs have formal business plans for generative AI completed or under development in critical functions2726 2
85、7“Effective decision-making is a combination of data,human judgment,and peoples opinion.The best decisions are those where collaboration informs the process.So,we take input from diverse groupssubject matter experts,data analysts,business leaders,and frontline employees who interact with customers.W
86、e take input from all these categories before making a decision.”Baby GeorgeCEO,JoyalukkasWorkforce planning in the hotseatAs AI invades the workplace,both consciously and surreptitiously,it is also fueling workforce disruption.Our research shows 43%of CEOs say they have reduced/redeployed their wor
87、kforce due to generative AI,with an additional 28%saying they plan to do so in the next 12 months.Yet a similar proportion of CEOs report having hired additional people due to AI,with plans for more hiring ahead.The picture is muddled.Answering the question“what kind of workforce will I need”seems t
88、o be a decision that is largely unresolved.Yet fewer than one in three CEOs have assessed the potential impact of generative AI on their workforce.This is among the most disquieting findings from our analysis.It means two out of three CEOs are acting without a clear view of how to help their workfor
89、ce with the disruption and inevitable transitions AI will bring.Whether this is an oversight or a process that is lagging,it is something to watchparticularly as there appear to be significant gaps between CEOs and other senior executives when it comes to their sense of the organizations skills and
90、readiness.Q:Which of the following actions have you already taken/will you take in next 12 months with respect to generative AI?Figure 3 CEOs make workforce decisions due to generative AIActions already takenActions planned in the next 12 monthsReduce/redeploy workforceAssess potential impact on wor
91、kforceHire additional workforce46%26%43%28%28%36%262928 29Big questions also linger about the organizational readiness to embrace and implement AI in decision-making.Seven in 10 CEOs see broad benefits from AI across the organization but their executive teams are far more wary about AI and workforce
92、 readiness(see Figure 4).Only 29%of teams feel their organization already has the in-house expertise to adopt AI.Teams are also worried about ensuring responsible AI.Only 30%of non-CEO senior executives say their organization is ready to adopt generative AI responsibily.“You need people who can comb
93、ine data,IT,and business process understanding,”says Matti Lehmus,President and CEO,Neste,referring to AI adoption.“Then you can leverage your value opportunities.”Without more pointed organization-wide decisions about AIand greater matching of CEO goals with workforce characteristics and planningto
94、o many enterprises will likely miss their window of opportunity to lead in the AI transition.Figure 4 CEOs are eager to act on AI,but their teams are less confident.while executives cite a lack of organizational readiness Q:To what extent do you agree with the following statements?(%reflects respons
95、es for“Agree”or“Strongly agree”).297 in 10 CEOs say generative AI brings broad benefits.My organization already has in-house expertise to adopt generative AI69%“Try to engage your team.Before making an important decision,I try to confirm if my view is correct.And I try to share what is going into th
96、e decision in case my team has doubts or some different ideas.”Roberto TomasiAutostrade per lItaliaCEOs29%ExecsI see broad benefits from generative AI across the organization283130What decisions matter most?The IBM IBV CEO Study has consistently asked leaders about their most pressing priorities.Com
97、pared with a year ago,productivity/profitability has moved to the top of the list,pushing customer experience from the top position to third(see Figure 5).Given the global economic environment,the focus on the bottom-line may be unsurprising.But the areas that most bedevil CEOs are those that are mo
98、re ambiguous.As a company chairman notes,“The biggest feature of turbulent times is the increase in uncertainty.A large part of growth comes from dealing with that uncertainty.”Part Three313332 What are the CEOs most challenging issues?While CEOs identify productivity and profitability as their top
99、priority,they pinpoint sustainability and cybersecurity as their biggest challenges (see Figure 6).SustainabilityRoughly 50%of CEOs and their executive teams now have compensation tied to sustainability goals,a significant jump from a year ago,when the figure was just 15%.“For us at smart,sustainabi
100、lity always has been and still is a hygiene factor:If you are not credible there as an EV-only brand,customers will not pick you,”Adelmann of smart Europe tells us.And in fact,our 2022 CEO study revealed that chief executives who align their sustainability strategy with their digital transformation
101、reported revenue growth of up to 41%higher than those who did not align their efforts.7Yet while 95%of companies have operational ESG goals,only 10%have made significant progress toward meeting them.8 This is a significant decision-making disconnect.“I dont think theres any organization that will te
102、ll you sustainability isnt important,”says CaixaBanks Gortzar.“The first thing to differentiate is who is just talking and who really believes that.The CEO may be saying a whole series of things that look good,but the reality is that often it is not embedded in the operation.”Q:Which of the followin
103、g represent your organizations highest priorities over the next 3 years?Figure 5 Shifting CEO priorities 32Figure 6 CEOs top challenges over the next 3 years 42%Environmental sustainability32%Cybersecurity/data privacy27%Tech modernization25%Talent recruiting/retention24%Diversity and inclusion22%Fo
104、recast accuracy21%Ecosystems and partnershipsQ:Which of the following represent your organizations greatest challenges over the next 3 years?2023Productivity or profitabilityTech modernizationCustomer experienceCybersecurity and data privacyEnvironmental sustainabilityProduct and service innovationM
105、arket share growth202248%45%44%43%39%38%30%Customer experienceProduct and service innovationEnvironmental sustainabilityCustomer relationshipsMore accurate forecastsProductivity or profitabilityImprove marketing and sales58%50%48%45%45%45%40%3534 Trial Holdings Inc.is promoting efforts to reduce ene
106、rgy use and decarbonization.For example,the company is utilizing abandoned educational facilities for its R&D site rather than renovating buildings.The company emphasizes the importance of utilizing existing assets as much as possible.Complicating the issue is sustainabilitys expanding definition an
107、d organizational uncertainty around appropriate metrics.Theres also doubt about the trustworthiness of sustainability reporting.Only about 45%of CEOs reported confidence in the ability to report on ESG strategy and initiatives,as well as data security and privacy,with accuracy.9 In addition,public t
108、rust has fallen in what is being reported.10 Matti Lehmus,President and CEO,Neste,explains the challenge:“Decision-making is not just taking data and trying to model accurately but spending time also on the uncertainties and working around those.For instance,the sustainability lens continues to broa
109、den into topics like biodiversity.We are just now as an industry and as society developing good metricshow to measure,what type of data to use.”Tracking and measurement in the sustainability space is a huge issue,according to the CEOs we interviewed.Cybersecurity Three out of four CEOs(76%)say that
110、effective cybersecurity across their business ecosystems requires consistent standards and governance.Thats a tough issue for large national organizations but an almost impossible one for global ones,who must deal with different sets of standards and regulations.Generative AI and quantum computing(d
111、ue to the need for quantum encryption)are poised to dramatically complicate an already very challenging space.CEOs need to rely increasingly on their Chief Data Officers(CDOs),as decisions about data and cybersecurity multiply.Six out of 10(61%)CDOs said their organizational data is secure and prote
112、cted,but they also shared that they struggle with data management issues such as reliability(47%),regulatory barriers(37%),unclear data ownership(36%),and data siloes/lack of data integration(33%)further complicating protecting data and privacy.11“Cybersecurity is one of those races where you can ne
113、ver winyou just need to know if youre ready,”says CEO and President Javier Tamargo of Canadian transportation firm 407 ETR.“Were transforming our systems and migrating to the cloud because we recognize that as a safer environment.”“Decision-making is not just taking data and trying to model accurate
114、ly but spending time also on the uncertainties and working around those.”Matti LehmusPresident and CEO,Neste34of government/regulators are demanding more data transparency and accountability around data security and privacy54%of CEOs are confident their organization has the ability to accurately and
115、 completely report the information stakeholders demand around data security and privacySecurity-related data concerns keep CEOs up at night55%35WhileOnly3736 Identifying a single source of truthMelbourne Water is a government authority that protects and manages water resources for the City of Melbou
116、rne,in Victoria,Australia.“We treat about 90%of Melbournes sewage at our Eastern and Western Treatment Plants,”says Daniel Bradshaw,Energy Accountant at Melbourne Water.“Energy use is a primary expense across the organization and accounts for about half the Victorian water sectors total carbon emiss
117、ions.”Melbourne Water pledged to help lead the states water sector in climate change mitigation.To reduce energy consumption and leverage renewable alternatives would require a detailed tracking tool that the organization did not possess.“We were using a legacy data management system that was cumber
118、some,limited,and difficult to use,”Bradshaw recalls.The system relied on manual data entry and file uploads,which often led to poor data quality.“A single misplaced comma could send the entire data set askew,”Bradshaw says.Whats more,users needed specific knowledge of the systems functionality,limit
119、ing who could access and analyze the data.Melbourne Water decided to create a single source of truth for its energy use,using cloud-based data and analytics software.Teams can now generate sustainability reports in hours,versus days,and analyze historical activity to permit the targeted replacement
120、of many non-renewable energy sources in its treatment and transfer system with renewable resources such as solar panels,hydroelectric power stations,and sewage gas combustion engines.Melbourne Water can also track the performance of its renewable projects.Case studyChallenge:Solution:Results:“I dont
121、 think theres any organization that will tell you sustainability isnt important.The first thing to differentiate is who is just talking and who really believes that.The CEO may be saying a whole series of things that look good,but the reality is that often it is not embedded in the operation.”Gonzal
122、o GortzarCEO,CaixaBank37363938Better decisions for a better world Leading an organization has never been harder than it is right nowand in all likelihood,the challenges will only escalate from here.CEOs need to expect and embrace uncertainty,and they also need to embrace new tools that enhance outco
123、mes.The emergence of generative AI as a business and decision-making tool is a defining moment.The choice?To be a passive consumer or a wise AI value creator.CEOs need to define a clear plan and charge ahead,have the right capabilities in place,and handle disruptions of all shapes and sizes without
124、slowing down or losing focus on strategic vision.Leaders cant be distracted by shiny objects,lured down dark alleys,tempted by easy fixes,or lulled into complacency.Part Four4140“Sometimes the CEO has to make a decision without a clear view to the final result.Thats when you say,I think this is the
125、direction.I dont know how to achieve this result,but I have to move.And I will try to better understand the situation.Today,you cant be certain about the future.Sometimes you have to make the decision to head in one direction and rely on your ability to try to change direction midstream if you need
126、to.”Roberto TomasiCEO,Autostrade per lItaliaReady for what is coming?“Sometimes the CEO has to make a decision without a clear view,”says Autostrade per lItalia CEO Roberto Tomasi.“You cant be certain about the future,and sometimes you have to rely on your ability to change direction midstream.We ne
127、ed stakeholders to allow that we can make a mistake.This is extremely important in situations where the future is very uncertain.”With humans and AI working together,a new wave of competitiveness has arrived.No single decision-making model will suffice for all situations.CEOs must bet on the communi
128、ty of talent within their team and invest in that team to enable higher performance.“Definitely,it helps to have information to make better decisions,”says President Carlos Zenteno of telecommunications firm Claro Colombia.“For me,artificial intelligence helps identify processes or patterns and comp
129、arisons with others in the industry.There is also a lot of intuition and a lot of human experience that goes into decisions,but always supported by numbers and analysis.”In what ways are CEOs waiting to respond,and how do CEOs turn those impulses and areas forward:to prepare,pre-empt,think forward?F
130、arsighted CEOs have generally built a vision of the world to come thats positiveand AI for good must be prioritized,to make that vision a reality.Use the action guide that follows to assess your own decision-making and how best to take it to the next level.434243Action guideCEO leadershipHeres what
131、top CEOs should prioritize to elevate decision-making in the age of AI.Get everyone smart on tech and data.Provide targeted training specifically designed for an AI world.Elevate those,such as your CDO,who have the expertise and insight to bring together business strategy,technology strategy,and dat
132、a strategy.Make“outcomes over activity”a mantra.Be prepared to terminate projects that are not delivering the intended value,supporting strategic goals,or following ethical guidelines.Make the data work for you,not vice versa.Use a broad range of planning approaches,including forecasting and modelin
133、g,scenario-based planning,benchmarking,and data mining.Recognize that no single decision-making model will suffice for all situations.Metrics and decision-making Eliminate layers between the data source and the decision maker while prioritizing flexibility over control.Guide decision-making across t
134、he organization,setting a framework for how decisions are made up and down the line,and how information about those decisions flows.Rely on your Chief Data Officer(CDO)for decisions about data and cybersecurity,including data management,data reliability,regulatory factors,data ownership,and data int
135、egration.Ask the Chief Sustainability Officer(CSO)and Chief Financial Officer(CFO)to create a balanced sustainability/profitability roadmap.Set the rules.Look for opportunities to define standards around sustainability,data security and privacy,and all forms of AI.Talent and workforces Assess the po
136、tential impact of generative AI on your workforce.Act with a clear view of how to help your workforce with the disruption and inevitable transitions AI will bring.Implement“digital-first”solutions to increase efficiency,engage talent,and develop new skills.Empower those with complementary skillsets
137、to co-develop AI and reimagine workflows.Know where your talent is coming from.Recognize potential skills shortages and align top talent to areas most critical to competitive advantage.Technology and data Change the enterprise mindset from“adding AI”to“starting with AI.”Initiate and deepen conversat
138、ions with your teams about the use of AI,to remove roadblocks to progress and to ensure safety measures are in place.Promote responsible AI through guardrails that align with the organizations values and standards.Check the dash.Use a digital dashboard to provide real-time integrated insights across
139、 the organization.Fix data shortcomings.In an era of generative AI,prioritizing data lineage and provenance,customizable proprietary data,and data security is crucial.Identify AI use cases that align with your organizations principles,broader technical guidelines,and architecture.Prioritize applicat
140、ions where AI can boost competitiveness,innovation,and unique business value.Accelerate transition to zero-trust security across the enterprise and partner network to power secure interactions,workflows,and innovation.Ensure consistent standards and governance for effective cybersecurity,including t
141、he areas around generative AI and quantum computing.Ecosystem and partners Simplify,digitize,and partner to build a resilient enterprise.Leverage open innovation and create new opportunities by connecting external and open data.Build a common platform using open hybrid technology that is consistent,
142、scalable,and optimized for the organization and partner ecosystem.Align targets with ecosystem partners,encouraging and reinforcing the use of consistent metrics and incentivizing collective action.Increase security at every point in the ecosystem by adopting zero trust security practices.Select key
143、 ecosystem partners and double down.Evaluate the strength of current and potential partners and invest in those that will make a difference and help form a winning team going forward.4544Research and analysis methodologyThe IBM Institute for Business Value,in cooperation with Oxford Economics,interv
144、iewed 3,000 CEOs from over 30 countries and 24 industries as part of the 28th edition of the IBM C-suite Study series.These conversations,completed from February through April 2023,focused on executives perspectives on leadership and business;their changing roles and responsibilities;and CEO decisio
145、n-making today,including key challenges and opportunities,their use of technology,data,and metrics,and their visions for the future.Insights were also drawn from numerous client conversations including more than a dozen deep-dive interviews with CEOs conducted explicitly for this study from March th
146、rough May 2023.Respondents in our study represent the most senior executives in their organizations:CEOs,Public Leaders,General Managers,and Managing Directors.The IBM IBV designed data collection by geographic location and industry,with representatives across organizations of various sizes as defin
147、ed by annual revenue or,in the case of public sector organizations,annual budgets.For this study,IBM IBV used a series of analytical methods to identify a group of respondents whose performance across a variety of factors in our 2023 IBM CEO study survey instrument differentiated them from the overa
148、ll respondent population.Those in this group expressed strong confidence in both their existing digital infrastructure and the breadth of their decision-making capability.IBM IBV,in cooperation with Oxford Economics,also conducted a survey of 200 CEOs in the United States on their response to genera
149、tive AI.These additional responses were collected in April through May 2023.Many thanks to the many people whose invaluable insights,expertise,and support helped make this report possible:Cindy Anderson,Steve Ballou,Madhuri Banda,Santiago Baquero,Christian Bieck,Kristin Biron,Andrea Bocotti,Christop
150、her Bontempo,Jrgen Braun,Jamie Cattell,Annette Celio,Bill Chamberlin,Marisa Conway,Haynes Cooney,Wei Ding,Darko Djapic,Mandy Drouin,Brian Goehring,Guilia Gotti,Prashant Gupta,Victoria Hyndman,Jayme Johnson,Vivek Kapur,Christian Kick,Peter Korsten,Stewart Lacey,Rachel Larkin,Kris Lawas,Salima Lin,Jes
151、us Mantas,Anthony Marshall,Kathy Martin,Michelle Mattelson,Dave McCann,Antoine Michaux,David Miller,Rakesh Mistry,Yu Muraoka,Hebatallah Nashaat,Masahiro Numata,Florencia Paradeda,Talita Cristina Paro Fabene,Daritza Perez,Roger Premo,Kristine Rodriguez,Wendy Roth,Thiago Sartori,Seiji Sera,Christine S
152、elph,Barbara Sheedy,Sherihan Sherif,Yan Xia Shi,Juha Sipola,Ai Jun Sun,Noriko Suzuki,Yuta Torisu,Vanessa van de Vliet,Li Wang,Andrew Womack,and Valquiria Zuntini.Contributors4746Notes and sources1 All data cited in this report is from the IBM Institute for Business Value 2023 CEO Study dataset,unles
153、s otherwise noted.2 Granger,John,Jesus Mantas,and Salima Lin.“Seven bets.”IBM Institute for Business Value.May 2023.https:/ May 26,2023.https:/ Dorsey,Dustin.“What are the benefits and concerns of artificial intelligence?”abc7 News.April 4,2023.https:/ Granger,John,Jesus Mantas,and Salima Lin.“Seven
154、 bets.”IBM Institute for Business Value.May 2023.https:/ DeRose,Adam.“These companies have banned or limited ChatGPT at work.”HR Brew.May 19,2023.https:/www.hr- The 2022 CEO Study.“Own your impact:Practical pathways to transformational sustainability.”IBM Institute for Business Value.May 2022.https:
155、/ Biswas,Arun,Elisabeth Goos,and Jacob Dencik,PhD.“The ESG data conundrum.”IBM Institute for Business Value.May 2023.https:/ibm.co/esg-data-conundrum9 Ibid.10 Ibid.11“Turning data into value:How top Chief Data Officers deliver outsize results while spending less.”IBM Institute for Business Value.Apr
156、il 2023.https:/ibm.co/c-suite-study-cdoAt IBM,we collaborate with our clients,bringing together business insight,advanced research,and technology to give them a distinct advantage in todays rapidly changing environment.The right partner for a changing worldIBM Institute for Business ValueFor two dec
157、ades,the IBM Institute for Business Value has served as the thought leadership think tank for IBM.What inspires us is producing research-backed,technology-informed strategic insights that help leaders make smarter business decisions.From our unique position at the intersection of business,technology
158、,and society,we survey,interview,and engage with thousands of executives,consumers,and experts each year,synthesizing their perspectives into credible,inspiring,and actionable insights.To stay connected and informed,sign up to receive IBM IBVs email newsletter at can also follow IBMIBV on Twitter or
159、 find us on LinkedIn at https:/ibm.co/ibv-linkedin.48 Copyright IBM Corporation 2023IBM Corporation New Orchard Road Armonk,NY 10504Produced in the United States of America|June 2023IBM,the IBM logo,and are trademarks of International Business Machines Corp.,registered in many jurisdictions worldwid
160、e.Other product and service names might be trademarks of IBM or other companies.A current list of IBM trademarks is available on the web at“Copyright and trademark information”at: document is current as of the initial date of publication and may be changed by IBM at any time.Not all offerings are av
161、ailable in every country in which IBM operates.THE INFORMATION IN THIS DOCUMENT IS PROVIDED“AS IS”WITHOUT ANY WARRANTY,EXPRESS OR IMPLIED,INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY,FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT.IBM products are warranted
162、according to the terms and conditions of the agreements under which they are provided.This report is intended for general guidance only.It is not intended to be a substitute for detailed research or the exercise of professional judgment.IBM shall not be responsible for any loss whatsoever sustained
163、by any organization or person who relies on this publication.The data used in this report may be derived from third-party sources and IBM does not independently verify,validate or audit such data.The results from the use of such data are provided on an“as is”basis and IBM makes no representations or warranties,express or implied.1V2XKXYJ-USEN-04