Why CEOs See AI as the Core of Future Technology
And Why It’s Everywhere
Most CEOs Think that AI is the Single Most Important Technology of the Future
Gartner just released a chart which kind of surprised me and made me think. Here it is.
Source: Gartner
The chart displays the results of a Gartner survey on the technologies that CEOs believe will have the most significant impact on their industries over the next three years. The responses indicate that AI is overwhelmingly considered the most impactful, with 59% of CEOs identifying it as a key influence, a substantial increase from previous years. Other technologies, such as digitalization (5%) and automation (3%), rank far lower. The right side of the chart shows a year-by-year comparison of AI's perceived impact, revealing a sharp rise in 2024 compared to previous years, where it was much lower, peaking only at 29% in 2020 and steadily growing since.
How is this possible? Is it THAT important? I can clearly remember the former tech hypes, and I’m sure, you too. Is it just another hype, or is it real this time? I’m an AI and tech enthusiast, but almost 2/3 of the CEOs too?
I try to figure it out, but for that, we need to go back to the roots.
A Brief History of AI
In the ever-evolving landscape of technology, various management trends have come and gone, each accompanied by its own hype. From "Big Data" to "Blockchain," businesses have eagerly adopted these buzzwords, often without a clear understanding of their practical applications. Today, we find ourselves amidst another wave of enthusiasm—artificial intelligence (AI).
This current AI hype, however, has deep roots that trace back to the birth of AI in the 1950s.
Source: The Augmented Manager
Over the many decades of AI development, only in recent years have we seen rapid advancements in speed and capabilities. This shift is largely driven by a few main factors: improvements in hardware capabilities and algorithms, and a broader increase in technical expertise and human skills.
As with any exponential advancement, progress often remains subtle and hard to perceive at first. However, as the pace accelerates, the curve steepens, and development surges forward with remarkable speed and impact, becoming impossible to ignore.
Now you can’t open your emails or web browser without reading something about AI or watching a video on the topic. And it has reached the very top level of business decision makers, apparently.
The Rise of AI as an All-Encompassing Force
Over the decades, AI has undergone significant advancements, and with the recent revolution in generative AI (GenAI), its capabilities have become more democratized and accessible than ever before. As organizations scramble to integrate AI into their operations, it’s crucial to discern between genuine innovation and mere marketing hype. Speaking about hype… there is a lot around AI!
According to Gartner's Hype Cycle for Artificial Intelligence in 2024, many AI technologies currently sit at the “Peak of Inflated Expectations,” where lofty promises often overshadow practical implementation.
Source: Gartner
No wonder, every CEO, CIO and other CxOs, experts, consultants, tech vendors are constantly talking about AI, and calling everything AI.
And there is also truth behind it. Gartner reports that AI capabilities and features are becoming increasingly embedded within enterprise software suites, including ERP, CRM, digital workplace, supply chain, and knowledge management applications. Integrated generative AI, such as large language models (LLMs), along with traditional AI tools like predictive analytics, enable deeper insights from data within these applications.
The report also highlights that AI is the current driver of competition in enterprise applications, with many tech providers integrating AI through built-in, added, proxied, or custom features. Ongoing advancements in AI continue to allow applications to operate autonomously across a broader range of scenarios, enhancing quality and productivity.
This article explores why AI is more than just a passing trend, how it is becoming integral to nearly every technology, and what leaders need to do to strategically navigate this AI-powered landscape.
Decoding the AI-Centric Shift in Technology
AI as the Foundation
AI has transitioned from being an isolated technology that only experts understand to an enabler across various domains such as automation, analytics, healthcare, and robotics. This shift positions AI as a foundational layer of tech stacks rather than merely an additional component. For instance, industries like healthcare and finance are embedding AI into existing workflows, enhancing the effectiveness of technologies like automation and data analytics.
The integration of AI allows for more efficient operations and improved decision-making processes. Reflecting on Gartner’s findings, it becomes evident that CEOs increasingly view AI as the core infrastructure for their future technological investments. This perspective aligns with the broader trend of integrating AI into everyday business operations, making it a critical consideration for strategic planning.
The AI Layer in the TOP 10 Emerging Technology of 2024
AI not only is a necessary foundation for all major developments in business nowadays, but also a crucial layer in many other emerging technologies, that are for sure relevant for the future, as described in the report of the World Economic Forum.
The TOP 10 Emerging Technologies of 2024 by the World Economic Forum
Source: World Economic Forum
The role of AI in the emerging technologies of 2024 is pivotal, as it enhances capabilities across various domains, driving innovation and efficiency. Below is an exploration of how AI integrates into each of the top ten emerging technologies identified for this year.
1. AI for Scientific Discovery
AI is revolutionizing the scientific discovery process by enabling researchers to uncover insights that were previously unattainable. Advances in deep learning and generative AI allow scientists to analyze vast datasets, predict molecular structures, and simulate complex biological processes. For example, DeepMind's AlphaFold has transformed protein structure prediction, significantly accelerating drug discovery and materials science. AI systems can now generate hypotheses and suggest new research directions, enhancing the creativity and efficiency of scientific inquiry
This capability not only speeds up research but also broadens the scope of potential discoveries in medicine and materials.
2. Privacy-Enhancing Technologies
AI plays a crucial role in developing privacy-enhancing technologies (PETs) that facilitate secure data sharing while protecting individual privacy. Techniques such as synthetic data generation rely on AI to create datasets that replicate real-world patterns without exposing sensitive information. This approach allows researchers to collaborate on health-related studies without compromising personal data security. Furthermore, advancements in homomorphic encryption enable computations on encrypted data, preserving privacy while still allowing for valuable insights from data analysis.
3. Reconfigurable Intelligent Surfaces
AI enhances reconfigurable intelligent surfaces (RIS) by optimizing their performance for wireless communication. These surfaces can adapt to environmental changes and user needs through AI algorithms that manage signal processing and energy efficiency. Here is a brief overview of this emerging technology:
By intelligently directing signals, RIS can improve network capacity and reduce energy consumption in applications ranging from smart factories to vehicular networks.
4. High-Altitude Platform Stations
AI contributes to the operation of high-altitude platform stations (HAPS) by optimizing network management and resource allocation. These platforms extend mobile network access to remote areas, helping bridge the digital divide. A real competitive technology for Elon Musk’s Starling…
AI algorithms can analyze user demand patterns and environmental conditions to enhance connectivity and ensure efficient use of resources.
5. Integrated Sensing and Communication
The integration of sensing and communication technologies is significantly enhanced by AI, particularly with the advent of 6G networks. AI enables simultaneous data collection and transmission, facilitating real-time monitoring in applications such as smart agriculture and urban planning. By analyzing environmental data, AI can optimize resource use, improve sustainability efforts, and enhance decision-making processes.
6. Immersive Technology for the Built World
AI enhances immersive technologies like virtual reality (VR) and augmented reality (AR) by enabling real-time data integration and analysis within physical environments.
In construction and infrastructure development, AI can help ensure that digital models accurately reflect physical realities, improving safety and efficiency during projects. This capability allows designers to visualize potential issues before they arise, fostering innovative solutions to complex challenges.
7. Elastocalorics
In the field of elastocalorics, AI aids in the design and optimization of materials that provide efficient cooling solutions under mechanical stress.
By analyzing material properties through machine learning models, researchers can identify optimal configurations for elastocaloric devices that minimize energy use while maximizing cooling efficiency.
8. Carbon-Capturing Microbes
AI is instrumental in engineering carbon-capturing microbes that convert emissions into valuable products like biofuels. Machine learning algorithms help optimize microbial processes by predicting metabolic pathways and enhancing conversion efficiencies. This approach not only mitigates climate change but also creates sustainable alternatives for energy production.
9. Alternative Livestock Feeds
AI supports the development of alternative livestock feeds by analyzing nutritional profiles of various feed sources like single-cell proteins and algae. By using predictive analytics, researchers can formulate feed mixtures that maximize nutritional value while minimizing environmental impact, addressing sustainability challenges in agriculture.
10. Genomics for Transplants
In genomics for transplants, AI facilitates the successful implantation of genetically engineered organs by analyzing genetic compatibility and predicting transplant outcomes. Machine learning models can process vast amounts of genomic data to identify optimal donor-recipient matches, improving transplant success rates and patient outcomes.
The integration of AI across these emerging technologies demonstrates its transformative potential in enhancing efficiency, driving innovation, and addressing global challenges. As organizations continue to harness AI's capabilities, we can expect significant advancements in various sectors ranging from healthcare to environmental sustainability.
So, AI is Really Everywhere, Right? Well…
The Phenomenon of AI Washing: Rebranding in the Age of Artificial Intelligence
As artificial intelligence (AI) continues to permeate various industries, a critical question arises: how much of the so-called "AI revolution" is genuine advancement versus mere rebranding of existing technologies? The trend of companies marketing their offerings as "AI-powered" has become increasingly prevalent, leading to a phenomenon known as "AI washing." This practice involves exaggerating or misrepresenting the extent to which AI technologies are integrated into products and services, often for the sake of attracting investment and enhancing market perception.
Source: The Augmented Manager (Tools: Midjourney + Canva)
AI washing refers to the practice of companies promoting their existing technologies as AI-driven, even when the actual AI components are minimal or non-existent. This trend is reminiscent of previous marketing phenomena like "cloud washing" and "greenwashing," where businesses inflated their capabilities to appear more innovative or environmentally friendly. This rebranding can transform an average enterprise technology provider into a perceived industry leader, despite the actual capabilities often falling short of claims.
Key Statistics on AI Washing
Growth of AI Mentions: In 2023, over 1,000 businesses mentioned AI in their quarterly reports, a significant increase from just 36 in 2013. This dramatic rise highlights how companies are leveraging the term "AI" to enhance their market appeal, regardless of whether they genuinely employ advanced AI technologies. Source: Goaland.
Discrepancy Between Claims and Reality: A study by MMC Ventures found that out of more than 2,830 startups classified as AI businesses in Europe, only 1,580 actually met the criteria for being considered true AI companies. This discrepancy indicates that many organizations are labeling themselves as AI-driven without having the necessary technology or capabilities to back it up. Source: DW.
Funding Impact: Companies that incorporate "AI" into their pitches tend to receive between 15% and 50% more funding than those that do not. This statistic underscores the financial incentive for businesses to engage in AI washing, as they seek to attract investors by riding the wave of AI enthusiasm. Source: Goaland.
Awareness Among Creatives: A survey conducted by Designit revealed that around 80% of creatives and designers are unaware of the practice of AI washing. Only 14% reported being aware and having direct experience with it, indicating a significant gap in understanding among professionals in creative industries about the potential for misleading claims regarding AI capabilities. Source: Designit.
Regulatory Scrutiny: The U.S. Securities and Exchange Commission (SEC) has begun taking action against companies for misleading claims about their use of AI. For instance, two investment advisory firms were fined a total of $400,000 for making false statements regarding their AI capabilities, highlighting the growing regulatory attention on deceptive marketing practices related to AI. Source: CPA Canada.
The statistics surrounding AI washing reveal a concerning trend where many companies leverage the allure of artificial intelligence without delivering on the promises associated with it. As awareness grows and regulatory scrutiny increases, it is crucial for organizations to be transparent about their actual capabilities and for consumers and investors to critically evaluate claims made about AI technologies.
And at the end, all CEOs are consumers of AI tools and services.
Although today it is quite a big problem, I strongly believe, that the phenomena of AI washing will slowly diminish as AI technology gains ground in nearly every facets of our lives. Not everything AI, what it seems to be AI, but AI itself will definitely one of the major drivers of future business development.
Practical Advice for CEOs and CIOs to Leverage AI
Despite more and more AI solutions being available everyday, companies still struggle with the adoption of AI. CEOs and CIOs need to address this issue together, but with different focus.
Here are the key steps for CEOs and CIOs to advance with AI in 2025:
CEO’s Playbook
As we approach 2025, CEOs face the pressing challenge of effectively integrating artificial intelligence (AI) into their organizations. The rapid evolution of AI technologies necessitates a strategic approach to ensure that businesses not only adopt AI but also derive meaningful value from it.
Every day, we hear remarkable news about companies like Google, Apple, Tesla, Nvidia, Microsoft, Amazon, and others leading the charge in the AI market. Meanwhile, hundreds of other businesses are introducing groundbreaking innovations daily.
I’m not here to provide a playbook for those tech giants’ CEOs. Instead, my aim is to offer guidance for you: leaders of other companies—the local energy provider, the airline you fly with, the hotel chain you stay at, or the restaurant you dine in. The everyday businesses. The ones that are focused on maintaining stability, managing day-to-day operations, staying competitive, and remaining profitable. Many of these companies haven’t even started with AI, or they’ve just taken their first tentative steps into this space.
So, here are a few simple action steps for their CEOs.
1. Don’t Fall for the AI Hype
In today’s AI-driven market, it’s easy to get caught up in buzzwords and exaggerated promises. But you don’t need to believe everything you hear about artificial intelligence. Take a step back, stay cautious, and look beyond the hype. Instead of relying solely on marketing claims, consult with your own experts, like your CIO and data scientists, to gain a realistic understanding of what AI can genuinely achieve for your business. This discerning approach will help you make strategic, informed decisions and avoid wasting resources on superficial solutions.
2. Understand How AI Can Support Your Business
As AI’s transformative potential becomes more widely recognized, it’s crucial for you to understand how to effectively leverage these technologies. Stay informed on AI advancements by engaging in continuous learning, attending industry conferences, and participating in executive training programs focused on AI and digital transformation. By collaborating with external experts and fostering a culture of innovation within your organization, you can stay ahead of the curve on AI trends and applications.
When you actively educate yourself on how technologies like AI can impact and improve critical areas of your business, you’ll be better equipped to make decisions that align with your strategic goals. This proactive approach not only deepens your understanding of AI but also empowers you to drive meaningful change within your organization.
3. Ensure that Your Fundamentals are Mature Enough
Before diving into ambitious AI projects, make sure your foundational elements are solid. This means ensuring that basic IT infrastructure, data management, and core business processes are well-established and optimized. Robust data security and privacy measures should be in place and up to date, protecting both your company and customer information. Additionally, assess the digital skills of your workforce to confirm that they are equipped to support and benefit from new technologies. Many organizations that skip these essentials end up struggling with AI implementation, leading to setbacks and security issues. By ensuring your basics are strong, you set the stage for successful AI adoption that drives real value.
4. Foster a Cross-Functional AI Mindset
To unlock AI’s full potential, ensure that expertise isn’t confined to tech teams alone. Embrace a collaborative approach across departments—encompassing operations, finance, and HR—to enhance the effectiveness of AI initiatives. By assembling cross-functional teams focused on solving business problems rather than merely implementing AI, you can leverage diverse perspectives and expertise to drive innovation and achieve superior results.
5. Future-Proof Your Organization by Building an Open, Innovative Culture
With AI technology evolving at an unprecedented pace, it’s crucial to foster an open, forward-thinking culture that encourages adaptation and innovation. Build a workplace culture where experimentation is valued and teams feel empowered to explore new ideas and question the status quo. Encourage open communication, knowledge sharing, and collaboration across departments to ensure everyone is aligned on strategic goals and understands how new technologies can add value. By creating an environment that embraces change, you prepare your organization to stay competitive, resilient, and ready to seize future opportunities.
6. Focus on Long-Term ROI
AI’s true value often emerges over time, rather than through immediate returns. Prioritize sustainable implementations that align with your organization’s strategic goals instead of chasing quick wins. By fostering a culture that values patience and strategic alignment, you can ensure that your organization fully realizes AI’s transformative potential.
7. Prepare for Ethical, Legal, and Financial Implications
As you incorporate AI into your operations, anticipate challenges related to privacy, security, fairness, and compliance. Develop comprehensive policies around the ethical use of AI to mitigate risks associated with regulatory scrutiny and public backlash. Organizations that proactively engage with regulatory bodies tend to experience fewer compliance issues. By addressing these considerations early, you can position your organization as a responsible innovator while navigating the complexities of an increasingly automated future.
As we look toward 2025, CEOs must prioritize these key areas in their AI agendas to ensure successful integration and utilization of artificial intelligence within their organizations. By critically evaluating vendor claims, fostering cross-functional collaboration, future-proofing their operations, focusing on long-term ROI, and preparing for ethical implications, leaders can drive meaningful change and position their companies at the forefront of the AI revolution.
CIO’s Playbook: Leading Digital Transformation and AI Integration in 2025
As we approach 2025, the role of CIOs is more critical and multifaceted than ever. The demand for digital transformation continues to grow, but budgets and resources may not keep pace. While tech giants like Google, Apple, and Microsoft dominate headlines with their AI advances, your challenge is different: you’re steering an organization that might not have the luxury of massive R&D budgets. Instead, you’re tasked with building a sustainable, cost-effective strategy that supports AI adoption and digital growth while delivering real value.
Here’s how to position yourself as a forward-thinking CIO, focused on driving success and enabling digital transformation across your organization. I used the CIO Agenda 2025 by Gartner for these recommendations, but I also added some from my experience.
1. Don’t be Afraid to Drive the Change
As a CIO, you’re not just a technology leader—you’re a catalyst for transformation. Embracing AI and digital innovation means guiding your organization into new territory, which can bring resistance from teams accustomed to traditional ways of working.
Source: The Augmented Manager (Tool: Canva)
Don’t hesitate to champion change. Communicate a clear vision that shows the value of digital transformation, not only in terms of technology but in how it will improve processes, enhance productivity, and drive growth. Lead by example, demonstrating an openness to experimentation and a willingness to take calculated risks. By confidently driving change, you’ll inspire others to adapt, enabling your organization to embrace new opportunities and thrive in a competitive, tech-driven landscape.
2. Strengthen Your Foundational Platforms
Your digital initiatives will only succeed if they’re built on strong foundations. As a CIO, prioritize creating platforms that are accessible and usable by non-IT teams, making it easier for business users to engage in digital projects. This includes investments in IT processes, cybersecurity, business intelligence, and integration technologies, such as APIs. By providing robust, easy-to-use digital platforms, you empower your organization to innovate and execute digital solutions, even outside the IT department.
Source: Gartner
3. Promote Architectural Awareness among Your CxO peers
Building an agile, innovative culture means more than upgrading technology; it requires educating your CxO counterparts and business leaders on architecture and security fundamentals. Many organizations struggle when non-IT leaders don’t fully grasp technology dependencies or vendor complexities.
Encourage architectural awareness across the organization by guiding your peers on best practices in enterprise architecture, vendor management, and total cost of ownership. Acting as an advisor, you’ll help them make informed decisions that align with the organization’s digital objectives. In this way, you’ll become a “Digital Vanguard CIO” as called by Gartner, whose organisation will clearly outperform the rest.
Source: Gartner
4. Equip Business Teams with Digital Skills
Empowering your business units to take ownership of digital initiatives requires an investment in digital skills across the organization. Rather than relying solely on HR, collaborate with CxOs to identify and address the tech skills needs within their teams, focusing on AI, data analytics, and digital leadership. Developing these skills allows business teams to lead their own initiatives, reducing dependence on IT and creating a more agile, digitally capable organization.
Source: Gartner
5. Facilitate Business-Led Innovation
Simply providing tools isn’t enough to foster innovation. Help your business leaders recognize and act on opportunities for AI and digital solutions tailored to their functions. By positioning yourself as an enabler of business-led innovation, you can guide CxOs to identify potential AI use cases and scale impactful ideas. Through hands-on support and strategic guidance, you’ll empower them to leverage emerging technologies that drive real value for the organization.
6. Cultivate Co-Ownership of Digital Initiatives
Your role as CIO is to ensure digital success isn’t siloed within IT but shared across the leadership team. Establish a co-ownership model with your CxOs, where each leader is accountable for digital outcomes from start to finish. This approach ensures that digital initiatives are strategically aligned and fully supported by the entire executive team, setting the foundation for a unified and impactful digital strategy.
7. Build Agility into Your Operations
The pace of technological advancement demands an agile approach. Invest in scalable cloud solutions, modular software architectures, and agile methodologies that allow you to quickly adapt to new opportunities and challenges. In case your organisation is ready for it, embrace frameworks like the Scaled Agile Framework (SAFe) to extend agile principles beyond the IT team, creating a responsive organization that’s prepared for rapid change. This agility will help your organization remain competitive in a constantly evolving digital landscape.
The journey to successful digital transformation is complex, but by focusing on foundational strength, cross-functional collaboration, and strategic skill-building, you’re setting your organization up for sustained success. Lead with adaptability, responsibility, and an eye for innovation, and you’ll enable your organization to thrive in an AI-driven future.
Conclusion
AI transcends being merely a standalone technology; it serves as the engine driving nearly every new innovation in the coming years. For CEOs and managers alike, the challenge lies not only in adopting these technologies but also in strategically integrating them across all functions within their organizations.
As leaders rethink their technology strategies with AI at the core—grounded in reality rather than hype—they must remain informed about developments while fostering agility within their teams. Building a workforce prepared for an increasingly automated future will be essential in navigating this transformative landscape effectively.
In summary, embracing an integrated approach toward technology prioritizing genuine applications will enable organizations to thrive amidst rapid changes, and also ensure they remain competitive now and into the future.