Most executives struggle to turn AI investments into results, survey shows
Seventy-nine percent of executives acknowledge struggling with AI adoption despite heavy investment, according to a survey of 2,400 global employees and C-suite leaders. The obstacles include lagging return on investment, strategy gaps, and internal power struggles.
The pressure weighs heaviest on CEOs. Thirty-eight percent report high or crippling stress around AI strategy, and 64 percent fear they could lose their job if they fail to guide their organization through the AI transition.
The productivity divide widens
Companies are creating a two-tier workforce. Ninety-two percent of C-suite leaders admit they're actively cultivating a class of "AI elite" employees who are at least five times more productive than those not embracing AI.
The stakes for falling behind are severe. Seventy-seven percent of executives warn that employees who refuse to become AI-proficient won't be considered for promotions or leadership roles. Sixty percent plan to lay off employees who can't or won't use AI.
ROI remains elusive despite optimism
Nearly all executives (97 percent) say AI has been beneficial. Yet few have seen real returns: only 29 percent report significant ROI from generative AI, and 23 percent from AI agents. Nearly half (48 percent) feel their company's AI adoption has been a massive disappointment.
Strategy gaps compound the problem. Sixty-nine percent of C-suite executives report their company is laying people off because of AI, but 39 percent admit they lack a formal strategy to drive revenue from AI tools. Where strategies do exist, quality is lacking-75 percent say their company's AI strategy is more for show than actual internal guidance.
Internal conflict and sabotage emerge
Fifty-four percent of C-suite leaders say AI adoption is tearing their company apart. Fifty-six percent report it has created power struggles and disruption, double the figure from the previous year.
Seventy-eight percent of executives say AI has created tension between IT and other business lines. Fifty-five percent describe AI use at their organization as a chaotic free-for-all.
Employee sabotage is becoming a recognized threat. Twenty-nine percent of employees-including 44 percent of Gen Z-admit to sabotaging their company's AI strategy by entering company information into public tools, using unapproved tools, or refusing to use AI. Seventy-six percent of executives say employee sabotage poses a serious threat to their company's future.
Security breaches linked to unapproved tools
Sixty-seven percent of executives say their company has suffered a data leak or security breach because an employee used an unapproved AI tool. More than one-third (35 percent) lack confidence they could shut down a rogue AI agent if it caused financial or reputational damage.
Organizational restructuring underway
Ninety-five percent of executives say roles, titles, and team structures are changing because of AI. Ninety percent say the rise of AI super-users will require them to completely rethink how they evaluate and reward performance.
Trust in management is shifting. Eighty percent of Gen Z trust AI more than their manager for tasks like performance feedback and career advice.
What separates leaders from laggards
Organizations making progress tie AI initiatives to measurable business outcomes, according to the survey. They also empower employees to innovate without creating IT bottlenecks and focus investment on opportunity and growth rather than just efficiency and cost-cutting.
Successful companies implement documented roadmaps, enterprise-grade governance for AI agents, and change leadership that works both top-down and bottom-up.
For more on how executives can navigate AI strategy and implementation challenges, see our guide to AI for Executives & Strategy.
Your membership also unlocks:
