Leaders believe digital transformation is key to optimising business functions and workflows, but for many, a steady approach to innovation takes precedence over breaking new ground in artificial intelligence (AI) adoption.
Most C-suite (62%) leaders expect AI to have a “transformational” impact over the next five years, and 40% expect AI-related increases to data volumes. In addition, 23% of leaders surveyed expect AI to have a “high” impact on their businesses during that time, according to a new survey from Thomson Reuters Institute. However, many leaders see the rise of AI as an opportunity to ride the wave of change, rather than lead the way.
Thomson Reuters Institute surveyed 200 C-suite executives across Australia, Brazil, Canada, France, Germany, Mexico, the UK, and the US.
The case for change
Many leaders are optimistic about the operational potential of integrating new technologies. The top three priorities for organisations in 2025, according to the C-suite executives surveyed, are digital transformation (82% in 2025 vs. 9% in 2024); improving operational efficiency (64% vs. 20%); and exploring the potential/implementing AI (62% vs. 9%).
Additionally, their receptiveness to digital solutions stems from limitations in existing functions. “Ineffective data and information flows” was most frequently cited as a “significant” barrier to currently meeting broader business objectives, the report said, alongside “significant” and “moderate” constraints from time-consuming compliance and reporting tasks.
The pace of change
Despite optimism, leaders are planning to take a methodical approach to digital innovation.
The rising business interest from last year reflects both the perceived link between “technology and efficiency” and digital transformation’s perceived significance in the global market, the report said. “However, C-suite leaders aren’t necessarily looking to become early adopters,” the report added. Overall, 17% of leaders surveyed are motivated to be “among the first” to use new AI-powered technology, and fewer (4%) have ambitions to pioneer new uses for those tools.
Instead, many leaders, the report added, are looking towards a thoughtful and thorough implementation. According to the report, some leaders foresee value in building on the success of others: Three-quarters of executives are willing to stall AI implementation until other organisations have done so successfully.
Generally, respondents are satisfied with their company’s progress in AI adoption. More than half of C-suite leaders (56%) believe their organisation is proceeding at the right pace, 31% believe their organisation is moving too slowly, and far fewer (14%) think their organisation is moving too quickly in adopting those tools, the report found. Among those concerned about a slow pace of change, they cite data quality (65%) and budget constraints (55%) as the main hurdles to faster adoption.
“This desire for precedent, however, is not stifling the desire to experiment and learn,” the report said. “Fewer than three in 10 C-suite leaders have yet to put a formal strategy in place, and only a very few say they have no plans at all to implement AI.”
Next steps
While business leaders are future-focused, they have not lost sight of the constant drivers of success, the report acknowledged. In measuring success, revenue (81%), profit (76%), customer satisfaction (66%), and retention (55%) remain key components for growth.
The next steps for leaders? Exploring how technology can improve operational efficiency, cut costs, and expand customer offerings. To stay competitive in those areas, leaders surveyed say their organisation is currently exploring or investing in cloud computing (86%) and generative AI (79%).
In organisations already using generative AI, leaders noted improvements in efficiency (78%), response times (65%), decision-making (56%), the frequency of human errors (55%), and the overall customer experience (55%).
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.