2024-04-25 03:03:48
AI is a top priority for CIOs, according to findings from Lenovo’s third annual global CIO report. “Inside the Tornado: How AI is Reshaping Corporate IT Today” reveals that while CIOs urgently need to adopt and expand AI, their ambitions are threatened by speed , security, and other organizational functions that are lagging in AI readiness.
In a marked contrast to previous years, CIOs are moving away from non-traditional responsibilities to focus even more on core IT functions. Just over half (51%) of CIOs feel AI/ML is an urgent priority to address, matched only by cybersecurity. This urgency is directly related to the pressure on CIOs to drive business impact rather than operational maintenance and preservation. 84% of CIOs revealed that they are being evaluated based on business outcome metrics more than ever before.
“Today’s CIOs are working in a hurricane of innovation. After years of IT expanding its responsibilities into non-traditional areas, we are now seeing how AI is forcing CIOs to return to their core mandate,” said Ken Wong, president of Lenovo’s Solutions and Services Group. “This is driven by the clear promise of AI adoption combined with the pressure IT leaders face to prove the value of these investments and deliver measurable business results.”
CIOs are optimistic regarding the impact of AI: 80% believe advances and developments in AI will have a significant impact on their business. At the same time, CIOs see speed of adoption and security as the most significant barriers to scaling AI. Large parts of their organizations are not ready for AI, which directly impacts IT’s ability to scale AI quickly. In particular, they highlighted: new product lines (78%), corporate policies/ethical use (76%), supply chain (74%), IT technical skills (51%).
What remains consistent with previous years is IT’s continued challenge in measuring impact. Sixty-one percent of CIOs said they find it very or extremely challenging to demonstrate return on investment (ROI) from technology investments. While 96% of CIOs anticipate an increase in investments over the next 12 months, 42% of respondents admit they do not expect to see positive ROI from AI investments for at least two to three years.
AI as a net positive impact for sustainability
Sustainability remains an important component of the CIO role, but this is complicated by the fact that 38% of respondents admit that sustainability is being relegated to the background as a result of resources being directed towards AI adoption. Ultimately, CIOs see AI as a net positive impact for sustainability: 78% say leveraging AI will make it easier to meet their organizations’ IT sustainability goals.
Questions regarding human capital and financial resources still remain
While CIOs share an optimistic view of IT readiness for AI, continued investment in AI might create additional human and financial resource gaps. 89% of CIOs warn that, with the continued expansion of AI technologies, the role of human capital will become even more important. With budget constraints expected, increasing headcount to match these AI ambitions might be challenging.
Similarly, while 96% of CIOs say they expect increases in AI investments in the next year, only 20% expect overall IT budgets to grow by more than 10%. CIOs admit that AI exploration and adoption is diverting resources and attention from other important areas of IT, including cloud adoption/digital transformation (48%), sustainability (38%), and employee compensation (38%).
“There is a clear opportunity for us to help companies understand AI, accelerate their scale, and advise on how the impact of these investments can be effectively measured,” Wong added. “Our customers are already using AI to advance sustainability, security and digital transformation initiatives. We can help them deliver more results by developing cohesive deployment strategies that address CIOs’ challenges.”
The Lenovo Global CIO Study is available at https://www.lenovo.com/ai-reshaping-it.
About Lenovo
Lenovo is a global technology powerhouse with revenue of $62 billion, ranked 217th on the Fortune Global 500, employing 77,000 people around the world and serving millions of customers every day in 180 markets. Dedicated to a bold vision of delivering Smarter Technology for Everyone, Lenovo has built on its success as the world’s largest PC company by further expanding into growth areas that drive the advancement of ‘New IT’ technologies (client, edge, cloud, networking and intelligence), including server, storage, mobile, software, solutions and services. This transformation, along with Lenovo’s game-changing innovation, is building a more inclusive, trustworthy and intelligent future for everyone, everywhere. Lenovo is listed on the Hong Kong stock exchange under the name Lenovo Group Limited (HKSE: 992) (ADR: LNVGY). To find out more, visit https://www.lenovo.comand read regarding the latest news in our StoryHub.
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Source: BUSINESS WIRE
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