AI Leadership in Uncertainty: How CEOs Are Turning Disruption Into Growth with IBM’s Strategy

AI Strategy IBM: How CEOs Can Turn AI Challenges Into Growth

The IBM Institute for Business Value’s 2025 CEO Study surveyed 2,000 CEOs from 33 countries and 24 industries to reveal a clear divide in AI strategy and success. Leaders are transforming economic uncertainty and regulatory disruption into growth by adopting AI with greater focus and intent.

AI has been part of business operations for years, but its impact hinges on CEO decisions. Early adoption was often tentative and inefficient. Now, CEOs are using AI as a strategic asset to gain advantage amid turbulence.

Mindset Differences Drive AI Success

Economic volatility and shifting regulations collide with fast AI advancements, making every strategic move high-stakes. Elaine Parr, leader at IBM’s Consumer Products, Retail and Luxury business, highlights a costly gap between AI ambition and actual impact.

Leaders who treat uncertainty as an opportunity rather than a burden are unlocking growth. The study shows only 25% of AI initiatives met expectations in the past three years, and just 16% scaled enterprise-wide. Still, 61% of CEOs are deploying AI agents and AI investments are set to more than double soon.

AI leadership is gaining prominence, with 31% of AI leaders now reporting directly to CEOs, up from 17% in 2023. This shift puts AI on the boardroom agenda, aligning initiatives with broader corporate goals. As a result, 68% of CEOs report AI is reshaping core business aspects including products, services, and operations.

Examples of Sustainable AI Innovation: Nestlé and L’Oréal

Some companies are applying AI to sustainability challenges. Nestlé partnered with IBM Research to create a regenerative AI tool that speeds up discovery of recyclable, high-barrier packaging materials. This reduces development time while improving environmental impact.

L’Oréal is working with IBM to build an AI foundation model that aids its 4,000 R&D scientists in sourcing eco-friendly ingredients, cutting waste, and accelerating sustainable product innovation aligned with its “L’Oréal for the Future” program.

IBM’s Recommendations for Long-Term AI Success

Pressure to stay competitive leads 64% of CEOs to invest in technologies before fully grasping their organizational value. IBM’s study urges leaders to develop frameworks turning disruption into lasting advantage.

• Only 25% of AI projects delivered expected results over three years.
• Just 16% scaled enterprise-wide.
• 61% of CEOs are deploying AI agents.
• 31% of AI leaders report directly to CEOs, up from 17% in 2023.
• AI investment is poised to more than double shortly.

Successful CEOs take calculated risks with AI, focusing on investments that yield measurable business outcomes. They reject small incremental improvements and set clear, ambitious transformation goals that require breaking down silos and driving enterprise-wide change.

Keeping AI Investments on Track Amid Challenges

Workforce development is crucial. CEOs are reskilling current employees, hiring for AI-specific roles, and embedding AI into workflows to meet evolving talent demands. Those moving beyond automating existing processes to reshaping operations position themselves for sustained advantage.

Market pressures demand faster decisions despite uncertain long-term results. The study advises combining bold AI investments with disciplined focus on measurable impact. Leaders who view disruption as opportunity differentiate their organizations through strategic AI adoption and comprehensive workforce initiatives.

“Every decision feels like a gamble, with leaders expected to deliver results amidst constant disruption,” IBM says. Elaine Parr adds, “Moving AI from proof of concept to profit requires someone with both industry insight and technical fluency. That’s what a Head of AI should bring – unifying vision, governance, and commercial delivery.”

For executives looking to deepen their AI proficiency and lead transformation effectively, exploring targeted AI training can build the needed skills. Resources like Complete AI Training’s courses for executives offer practical learning paths tailored to leadership roles.