Businesses worldwide are rushing to integrate AI technology into their operations, but a recent study reveals that the outcomes have not met expectations. According to a report by IBM surveying 2,000 CEOs globally in early 2025, only 25% of AI initiatives have yielded the anticipated return on investment (ROI) over the past three years. Despite this underwhelming performance, CEOs remain optimistic about AI’s potential, with 85% expecting a positive ROI for investments in scaled AI efficiency and cost savings by 2027, and 77% anticipating returns for projects emphasizing scaled AI growth and expansion.
Despite the current challenges, IBM vice chairman Gary Cohn encourages CEOs to persevere with AI implementation and even accelerate their efforts. He emphasizes the importance of leveraging AI and data to stay competitive, noting that as AI adoption increases efficiency and productivity gains, only those leaders willing to embrace risk as opportunity will reap the ultimate benefits.
While many companies in the U.S. have expressed enthusiasm for AI to enhance internal processes, productivity, workforce development, and customer service, a Gallup poll from late 2024 revealed that only 15% of employees feel their workplaces have a clear AI strategy in place. However, some experts believe that the economic uncertainty caused by fluctuating tariff policies under President Donald Trump could actually spur faster AI adoption in the corporate sector. Historical data shows that during times of economic hardship, industry leaders have been motivated to adopt new technologies to survive.
Constantine Alexandrakis, CEO of Russell Reynolds Associates, a leadership advisory firm, sees parallels between current AI adoption and the rapid integration of communication technologies during the COVID-19 era. He suggests that CEOs are exploring the potential to accelerate AI adoption to drive cost efficiencies. This shift in mindset reflects a strategic response to economic challenges and a recognition of the transformative power of AI technologies.
