IBM: How CEOs Can Turn AI Challenges Into Growth

AI has been integrated into business operations for some time now, but how it is adopted, navigated and used depends on CEOs.

When AI was newer and evolving, adoption and navigation was clunky and uncertain for leaders.

Now, according to new research from IBM’s Institute for Business Value, CEOs are turning economic disruption and regulatory uncertainty into growth opportunities by embracing AI as a strategic differentiator.

The IBM Institute for Business Value’s 2025 CEO Study, part of IBM’s Global C-suite series, surveyed 2,000 CEOs from 33 countries and 24 industries to understand how leaders navigate turbulence in business environments where AI technology evolves faster than organisations can adapt. 

The research reveals strategies that distinguish successful leaders from those struggling with constant uncertainty.

How mindset towards AI can differentiate success 

IBM finds that economic volatility and regulatory shifts are colliding with rapid AI advancement, creating conditions where every strategic decision carries significant risk.

“[There’s] a real gap between ambition and impact – one that’s costly in an industry that’s desperate to save money right now to fuel growth,” says Elaine Parr, Leader of IBM's Consumer Products, Retail and Luxury business.

However, the study identifies leaders who view uncertainty not as a challenge to endure but as an opportunity to unlock growth through deliberate technology adoption.

As a result, the research exposes a contrast between AI ambitions and actual results across global enterprises. 

Only 25% of AI initiatives delivered on expectations over the past three years, while just 16% have scaled enterprise-wide. 

Despite these implementation challenges, 61% of CEOs are already deploying AI agents.

At the same time, investment patterns reflect growing confidence in AI’s strategic importance. 

AI spending is set to more than double in the near term, with organisations committing resources at unprecedented levels. 

The elevation of AI leadership within corporate hierarchies shows this change, as 31% of AI leaders now report directly to chief executives, rising from 17% in 2023.

This organisational restructuring means that AI has moved beyond technology departments to become a board-level strategic priority. 

The direct reporting relationship enables faster decision-making and ensures AI initiatives align with corporate strategy rather than remaining isolated within technical functions.

As a result, 68% of CEOs report that AI changes core aspects of their business, from products and services to operational processes. 

Nestlé and L’Oréal set examples for sustainable AI applications

Several major corporations are demonstrating practical AI applications in sustainable innovation, too. 

Nestlé, for example, has collaborated with IBM Research to develop a regenerative AI tool using a custom chemical language model and regression transformer. 

These machine learning (ML) systems accelerate discovery of sustainable, high-barrier packaging materials that protect products whilst improving recyclability and reducing development timelines.

Additionally, L’Oréal is co-creating an AI foundation model with IBM to support sustainable cosmetic formulation. 

The system helps the company’s 4,000 research and innovation scientists source eco-friendly ingredients, reduce waste and accelerate product innovation aligned with its “L’Oréal for the Future” sustainability programme. 

IBM’s strategy for long-term AI success

The pressure to maintain competitive positioning drives fast investment decisions, with 64% of CEOs acknowledging they invest in technologies before fully understanding their organisational value.

“The risk of falling behind drives them to invest in some technologies before they have a clear understanding of the value those solutions bring to the organisation,” the study finds.

Despite this urgency, successful leaders are developing frameworks that convert disruption into sustainable competitive advantage. 

IBM identifies specific strategies that enable CEOs to navigate uncertainty whilst building organisational resilience through strategic technology adoption.

These leaders prioritise intentional risk-taking by embracing AI while making calculated technology investments that deliver measurable business outcomes even during uncertain periods. 

Rather than following technology trends without clear business rationale, they focus on innovation that produces tangible results through operational improvements and revenue generation.

High-performing CEOs reject incremental improvements in favour of ambitious transformation goals. 

IBM recommends setting objectives that are sufficiently clear that entire organisations understand them and that require dismantling departmental silos to achieve enterprise-wide change.

How to keep AI investments on course in the face of challenges

Workforce development emerges as a critical component of successful disruption management. 

CEOs are implementing strategies that include reskilling existing talent, hiring for emerging AI-related roles and integrating AI into operational workflows to address human capital requirements in technology-driven business models.

IBM says companies moving beyond automation of existing processes to implement AI systems that alter business operations demonstrate superior competitive positioning for sustained market advantage.

Simultaneously, market pressures continue compelling leaders to accelerate decision-making timelines while managing uncertainty about long-term outcomes. 

The study suggests that successful navigation of these challenges requires combining bold technological investments with disciplined focus on measurable business results.

Global economic uncertainty and regulatory shifts also complicate strategic planning for CEOs across industries. 

However, the research indicates that leaders who successfully manage these conditions view disruption as an opportunity to differentiate their organisations through strategic technology adoption and comprehensive workforce development programmes.

“Every decision feels like a gamble, with leaders expected to deliver results amidst constant disruption,” IBM says.

“Moving AI from POC to profit requires someone with both industry sensibility and technical fluency,” Elaine adds.

“That’s exactly what a Head of AI should bring – a strategic custodian who unifies vision, governance and commercial delivery.”