Third of Global CIOs Warn Boards of Unrealistic AI Expectations

According to multiple studies commissioned by Expereo and conducted by IDC, global chief information officers (CIOs) are warning that company boards often have unrealistic expectations about the impact of emerging technologies, particularly artificial intelligence (AI), on business performance. The surveys, involving 650 technology leaders from Europe, the United States, and the Asia-Pacific region, highlight significant challenges in AI implementation, despite its perceived importance for achieving strategic goals. Unmet Expectations and Growing Hopes In an increasingly volatile economic landscape, many organizations are looking to AI as a catalyst for growth. A notable 87% of business leaders believe AI will be crucial in meeting their objectives over the next year. However, only 12% of companies report that AI has underperformed, suggesting a disconnect between the anticipated and actual benefits. Approximately 28% to 34% of global technology executives indicate that internal expectations about what AI can achieve have outpaced their capabilities, potentially derailing well-intentioned AI initiatives. Major Obstacles in AI Implementation 1. Inadequate Infrastructure One of the primary hurdles is the existing network and connectivity infrastructure. Fifty-two percent of respondents cited their current infrastructure as unable to support new AI projects, while 45% noted that network performance issues limit their ability to handle big data and AI effectively. This percentage has grown from 38% in 2024, indicating a mounting problem. The need for robust IT foundations capable of managing large-scale AI applications is becoming more critical. 2. Employee Resistance Employee resistance adds another layer of complexity. Thirty-five percent of technology leaders reported that staff are concerned about job security due to AI, leading to resistance against its adoption. Additionally, 34% find it challenging to keep up with the pace of technological change, further complicating AI integration efforts. Companies are addressing this by investing in training programs to help employees adapt to and understand the benefits of AI. 3. Overambitious Goals Overly ambitious expectations from management are exacerbating the situation. While boardrooms view AI as a panacea, practical limitations and real-world complexities often lead to misaligned goals and resource mismanagement. Ben Elms, CEO of Expereo, emphasizes the importance of setting realistic targets and adjusting expectations to ensure long-term success. He points out that strong network infrastructure and detailed planning are essential for harnessing AI’s full potential. 4. Skills Shortage A significant skills gap is also impeding progress. Over one-third (35%) of companies struggle to attract or retain vital AI, data, and automation talent. This shortage is particularly acute given that AI is now considered a top priority, highlighting a need for better strategies to recruit and retain skilled professionals. Addressing the Challenges To overcome these obstacles, businesses are adopting various strategies. Investments in cloud services are helping some companies address infrastructure inadequacies, providing flexible and scalable solutions. Employee training programs are being enhanced to mitigate resistance and bridge the skills gap. However, a lack of clear strategic planning and understanding remains a persistent issue, making it difficult for companies to translate theoretical advantages into tangible results. Positive Outlook and Strategic Importance Despite these challenges, there is a prevalent belief in AI's transformative power. Sixty-four percent of CIOs feel both excited and pressured by the need to deploy AI effectively. They recognize its potential to enhance operational efficiency, optimize customer experiences, and drive product innovation. Seventy-nine percent of technology leaders also report that AI focus has elevated their status within the boardroom, up from 60% in 2024, indicating growing recognition of their role in digital transformation. Expereo’s Role and Solutions Expereo, a leader in managed network services, is playing a key role in helping businesses navigate these challenges. The company provides advanced internet solutions, including global internet, SD-WAN/SASE, and enhanced internet services, covering over 190 countries. Its recent partnership with SpaceX’s Starlink aims to offer low Earth orbit (LEO) satellite internet, enhancing connectivity and reliability in remote or underserved areas. This move underscores Expereo’s commitment to innovative technologies and its strategic position as a trusted partner for 60% of Fortune 500 companies. Since its founding in 2008, Expereo has consistently delivered reliable and efficient connectivity solutions. Its acquisition by Vitruvian Partners in February 2021 has further solidified its market leadership. By aligning with Starlink, Expereo can better support clients’ digital transformation needs, ensuring they have the necessary infrastructure to leverage AI effectively. Industry Insights Industry experts view Expereo’s initiative with Starlink as a significant step towards solving the infrastructure challenges that many companies face. The partnership is expected to provide unparalleled global coverage and service reliability, crucial for the seamless integration of AI. Expereo’s extensive experience and strategic approach make it well-positioned to help enterprises address the multifaceted challenges of AI adoption. In conclusion, while the prospects for AI are promising, the path to successful implementation is fraught with challenges. Companies must invest in improving their IT infrastructure, manage employee concerns, and set realistic goals. With the support of partners like Expereo, which offers comprehensive solutions and expertise, the journey towards AI-driven innovation becomes more achievable. The ability to align AI strategies with practical realities will determine the success of these endeavors, ultimately shaping the future of digital agility in the corporate world.