NTT: How Global CEOs Are Planning For an AI Investment Surge
Enterprise adoption of AI reached critical mass in 2024 as organisations progressed beyond proof-of-concept trials to full deployment.
Technology leaders now face demands to demonstrate measurable returns while navigating concerns about data security, environmental impact and emerging regulations.
Yet market volatility and economic uncertainty have not dampened enthusiasm for AI investment.
Technology budgets continue to expand as companies seek competitive advantages through automation, improved customer experience and operational efficiency.
The shift coincides with widespread deployment of Gen AI tools, forcing executives to adapt technology strategies.
Now, companies move from experimental AI projects to enterprise-wide implementation as pressure mounts to demonstrate returns on technology investments, according to research from NTT and conducted by WSJ Intelligence.
The survey of 351 chief executives, reveals that 89% of global CEOs consider AI technology central to maintaining profitability.
The research targeted organisations with revenues exceeding US$1bn in the US and US$500m in other markets.
NTT research shows regional AI implementation differences
NTT reports that US executives prioritise revenue growth over operational efficiency in AI deployment compared to global counterparts.
- 89% of surveyed CEOs rank AI as their most vital technology for future competitiveness
- 77% planning to increase AI budgets in 2025
- 87% of CEOs identify an urgent need for AI governance frameworks, with data privacy and cybersecurity emerging as primary concerns
- 85% of respondents express concerns about AI's energy consumption
- 90% of CEOs report familiarity with photonic computing networks, which promise to reduce power consumption by 100 times while increasing transmission capacity by 125 times
The survey found 8% of global respondents expect AI to enhance IT operations, while 87% anticipate improvements in customer experience.
LLMs will become more personalised according to 84% of respondents and this increases requirements for accountability measures and governance frameworks.
Additionally, investment projections for 2025 indicate 70% of respondents anticipate net increases in technology investments.
Among these leaders, 48% forecast an increase of 1-10% in Gen AI investments, while 29% expect growth exceeding 10%.
Technology investment priorities shift towards AI systems
The study also found that Gen AI leads enterprise technology priorities, with 44% of respondents naming it among their top three technologies.
Meanwhile, AI-augmented software development, which uses AI to assist programmers, received 22% of responses.
Furthermore, the Internet of Things (IoT), networks of internet-connected devices that collect and share data, ranked second at 25% of priorities, while industry cloud computing followed at 23%.
Vito Mabrucco, Global Chief Marketing Officer at NTT, says: "These results make it clear that AI is poised to receive increased investment commensurate with its outstanding potential."
Global technology leaders focus on AI governance
The study discovered that cybersecurity has emerged as the primary driver of new technology adoption, with data privacy, regulatory compliance and environmental impact as central concerns for technology leaders.
The research indicates 87% of respondents require AI governance and risk management frameworks.
Among CEOs who consider AI crucial to operations, 70% prioritise data privacy, while 38% emphasise cybersecurity risks.
Furthermore, regulatory compliance concerns are more pronounced in the US, where 46% of CEOs identify it as a challenge, compared to 33% globally.
Muneki Nemoto, Chief of AI Governance at NTT, says: "The long-term consequences and impacts of AI's actions are still uncertain, raising both expectations and anxiety."
Environmental considerations also remain significant, with 85% of respondents expressing concern about AI's energy requirements, with more than 80% expecting regulations to address AI's energy consumption.
NTT reports progress in photonic computing development
NTT also indicates interest in photonic computing infrastructure, which uses light rather than electricity to process and transmit data.
This technology addresses performance and environmental concerns in computing infrastructure, with 90% of surveyed CEOs reporting familiarity with photonic networks.
NTT's IOWN initiative aims to develop networks that consume one-hundredth of the power of conventional systems while increasing transmission capacity by 125 times and reducing latency by 200 times.
Additionally, half of the surveyed executives believe businesses should initiate sustainable technology development, which aligns with industry movements toward circular economy principles and responsible technology deployment.
Wendy Collins, Chief AI Officer at NTT Data North America, says: "The hype around automation and cost savings has led to unrealistic expectations. The way forward is to focus on higher-order value, like customer engagement and competitive advantage."
Abhijit Dubey, President and CEO at NTT Data, adds: "The impact of these technologies extends beyond automation - they're reshaping business models and workflows at every level. Leaders must guide their organisations through this transformation with clear vision, urgency and responsibility."
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