CEOs Find AI as the Most Disruptive Technology Impacting Industries

A recent survey conducted by Gartner, Inc. among CEOs and senior executives has revealed that artificial intelligence (AI) is considered the top technology that will significantly impact industries in the next three years, with 21% of survey respondents citing it as such.

According to Mark Raskino, Distinguished VP Analyst at Gartner, “Generative AI will profoundly impact business and operating models.” He further explains that the fear of missing out drives technology markets, and AI is reaching a tipping point where CEOs who haven’t invested in it yet become concerned about missing out on something competitively important.

The 2023 Gartner CEO and Senior Business Executive Survey, conducted between July and December 2022, gathered responses from over 400 CEOs and senior business executives across various industries, revenue ranges, and company sizes in North America, Europe, Asia/Pacific, Latin America, the Middle East, and South Africa.

The survey revealed that despite potential economic downturns and recessions in 2023, half of the CEOs still prioritize growth as their top strategic business objective for the next two years. Technology also remains a focal point for CEOs, closely followed by workforce issues. Kristin Moyer, Distinguished VP Analyst at Gartner, notes that after three years of volatility, CEO priorities are stabilizing, with a shift towards talent, sustainability, and next-level digital change as the drivers of competitive performance.

Environmental sustainability has gained significance among CEOs, with a 25% increase in mentions compared to the previous year’s survey. Gartner predicts that by 2026, environmental sustainability will become a higher strategic priority for CEOs than technology-related concerns.

Inflation emerged as the most damaging business risk, as stated by 22% of CEOs, and nearly a quarter anticipated a greater shift in customer expectations towards price sensitivity. CEOs responded to inflation by prioritizing price increases (44%), cost optimization (36%), and productivity, efficiency, and automation (21%) as the top actions to counter its impact. However, Kristin Moyer expressed concern that CEOs seem less focused on productivity in an inflationary period, emphasizing the need for automation to drive efficiency instead of passing cost increases onto customers.

The talent shortage was identified as the most damaging risk for organizations by 26% of CEOs, with attracting and retaining talent being their top workforce priority. Employee behavior shifts related to compensation and the desire for greater flexibility and remote or hybrid work were identified as key challenges in talent management.

Raskino concludes by highlighting the significance of these findings, indicating that while pay is a major concern in an inflationary environment, CEOs should not overlook the importance of productivity enhancement through automation, as unemployment dynamics alone may not be sufficient to sustain labor market power.

The survey results provide valuable insights into the perspectives of CEOs and senior executives, offering a comprehensive view of their priorities, concerns, and strategies for navigating the evolving business landscape.