1、Technology Leaders Study6 blind spots tech leaders must revealHow to drive growth in the generative AI eraIBM Institute for Business ValueGlobal C-suiteSeries30th EditionAbout the studyIn Q1 2024,in cooperation with Oxford Economics,the IBM Institute for Business Value(IBM IBV)surveyed 2,500 C-suite

2、 technology leaders,including Chief Technology Officers(CTOs),Chief Information Officers(CIOs),and Chief Data Officers(CDOs).Separately,a small group of executives was engaged for in-depth,qualitative interviews.These discussions focused on key insights from the study and the executives on-the-groun

3、d experience leading technology for organizations in the new era of AI.With respondents spanning 26 industries and 34 locations worldwide,this study marks a significant first look at a new technology coalition that is managing the enablement and delivery of AI capabilities across the business.For mo

4、re details,see“Research methodology and analysis”on page 62.The cover concept and individual patterns in this report were developed using generative AI.IBM IBV designers translated each of the“blind spots”into prompts,and then used these prompts within Adobe Firefly to generate vector-based imagery

5、that inspired the basis and structure for each pattern.Similarly,the photos that appear in this report were identified using AI-assisted,natural-language search,using the generated patterns as reference images.Overall,the efficiency gained by integrating these tools into the design process is as fol

6、lows:Concept3 weeks to 1.5 days Patterns2 weeks to 2 days Photography1 week to 2 hoursContents2 Introduction The end of business as usual7 Tech leaders outlook We treat tech as an enabler but.Tech must be the core of everything we do.12 InnovationWe say we are working together but.Our collaboration

7、is only skin-deep.20 LeadershipWe hope it will be a magic wand but.Generative AI could break our organization.28 InfrastructureWe want it to be trustworthy but.Our AI may be irresponsible.36 AIWe talk about data as currency but.Our data could be a liability.44 DataWe think our team is strong but.Wer

8、e still fighting yesterdays talent battle.52 Talent61 Conclusion62 Research methodology and analysis11 The six blind spotsIntroduction 32The end of business as usualIntroduction“Business leaders are becoming more tech savvy.When you have a discussion,they have a very good understanding of what techn

9、ology can do.You have to be empathetic to what they understand.It involves being much more versatile.”Bernd BucherGlobal Head Data,Digital,&IT/CIO,NovartisElevating tech leadershipIT as a standalone function is dead.The rapid ascent of generative AI delivered the death knell.Technology is the busine

10、ss.And 72%of top-performing CEOs say competitive advantage depends on who has the most advanced generative AI.1 That means organizations are counting on tech leaders as never before.CEOs who say technology officers will be crucial decision-makers over the next three years increased 50%since 2023.2 C

11、FOs cite CTOs as the partners most important to their success.3 To meet these expectations will demand a new approach to tech leadership.For technology to deliver enterprise-wide business outcomes,tech leaders must be part mastermind,part maestro.They must architect technology strategy across data,s

12、ecurity,operations,and infrastructure,teaming with business leadersspeaking their language,not tech jargonto understand needs,imagine possibilities,identify risks,and coordinate investments.They must build multidisciplinary teams to bring the strategy to life,encouraging the experimentation and fres

13、h ideas that inspire employees and delight customers.Its an enormous responsibility and one that many tech leaders have struggled to meet.As the scope of“technology”has expanded over the past two decades,new roles have been added.But despite a growing team of technology leaders,“technology”has not c

14、onsistently and effectively been integrated into strategic decision-making for the business(see Perspective,“Beyond the org chart:A high-powered tech coalition”on page 6).Introduction 5Figure 1 Slippery slopeC-suite leaders agree that IT has become less effective at basic technology services over th

15、e last 10 years.4Our 2024 survey of 2,500 CIOs,CTOs,and CDOs suggests they are still being left out of critical conversations.Their absence or ineffective participation has resulted in organizational blind spots in areas such as data,infrastructure,talent,and innovation.While 43%of CEOs say they int

16、end to increase the pace of change for their organization this year,4 these blind spots are making it difficult for organizations to seize todays opportunities in artificial intelligence in all its guisestraditional AI,gen AI,machine learning,and automation.Our study also reveals that tech leaders a

17、re straining under the pressure.More than half say theyre struggling to balance growth and productivity,and juggling tasks is taking a toll on internal operations.Notably,the percentage of C-suite leaders who say their IT function is effective in delivering even basic services has plummeted over the

18、 last decade(see Figure 1).We see in our results that when tech claims an equal seat at the C-suite table,they can indeed steer significant outcomes(see“Tech outperformers crack the code to success”).But just as CEOs must face the hard truths outlined in our 2024 CEO study,tech leaders must courageo

19、usly expose the blind spots that are preventing their organizations from achieving AI advantage.In this report,we discuss how these impediments can be overcome if tech executives command the honest,must-have discussions about the readiness of their organization to deliver breakthrough innovation and

20、 business outcomes.The future is on the line.Tech leaders ability to insert their essential expertise into enterprise decisions will ultimately determine their organizations success in the AI era.Percent saying the IT organization is effective at providing basic technology services“I do believe that

21、 technology teams are called to have greater symbiosis with our business.The boundaries between business and technology have become increasingly blurred.”Alberto Rosa CTO,CaixaBankCEOsCFOsTech leaders64%36%2013Today2013Today2013Today60%69%47%50%Source:Rate the effectiveness of your IT organization i

22、n providing basic technology services.Percentages represent those CEOs,CFOs,and tech executives who responded effective or highly effective in IBM IBV 2013 and 2024 C-suite surveys.2013 tech leaders is CIO-only data.PerspectiveBeyond the org chart:A high-powered tech coalitionAs technology permeates

23、 organizations,tech leadership roles have evolved,and new ones have emerged.But in an increasingly complex operating environment where data,security,operations,and infrastructure are more integrated,business and technology teams must come together to deliver a cohesive set of experiences,capabilitie

24、s,and outcomes.Remaining in functional silos is no longer an option.CIOs,CTOs,and CDOs need to reinvent how they work together toward their organizations shared business goals,building bridges in support of shared ownership and accountability.At the same time,tech executives still need to divide and

25、 conquer,focusing on their areas of expertise.Introduction 7Tech leaders outlookTech outperformers crack the code to successTech leaders juggle strategy,delivery,and support across data,security,operations,and infrastructureall aimed at optimizing efficiency and competitiveness.Our research identifi

26、ed a high-performing group,comprising nearly 20%of our global sample,that excels in this mission.Four critical capabilities and characteristics set tech outperformers apart1Effective strategy development and executionEnabling a compelling strategic vision that drives business outcomes2Cross-function

27、al collaboration to support tech investmentsWorking with business lines and finance to manage technology costs and budgets3A commitment to measuring outcomes and valuePartnering with finance to understand digital initiative value and alignment with enterprise strategy4A sharp eye on tech at all leve

28、ls throughout the organizationMaintaining keen visibility into all IT at decentralized,line-of-business,geography,and function levels6Chief Technology OfficersCTOs continue to battle the balance between security and innovation.Generative AI complicates an already complex cyber threat landscape,exace

29、rbating tension between protecting what has been built and pushing the boundaries of whats possible.Indeed,cybersecurity ranks second on CTOs priority list,behind product and service innovation.The good news:core security practiceszero trust,secure by design,DevSecOpsare still the best defense.Chief

30、 Information OfficersAmid shifting responsibilities,CIOs question the effectiveness of the IT function.A remarkable 63%admit their tech organizations are not very effective at leveraging workflows and automation to drive business strategy.But therein lies the opportunity.Winners are transforming in-

31、house functions with the help of an augmented workforce where employees and AI combine to work smarter and faster.Chief Data OfficersData is no longer a domain unto itself but the nerve center that connects technology to the broader business and propels innovation.For most organizations,a robust dat

32、a culture that can enable and support AI operations is still a work-in-progress.But taking an enterprise-wide view of the relationship between data and AI operations is essential.“Classifying the data problem as a technology problem is a bit unjust,”says FuShan Hu,CIO at CHINT Group Co.,Ltd.“Its a c

33、omprehensive problem and thats why data governance is so difficult.”8Tech leaders outlookWhere do high-performing tech leaders excel?Introduction 91.Rate the effectiveness of your organization in delivering outcomes for productivity,cybersecurity and data privacy,and product and service innovation.P

34、ercentage reflects those who responded“effective”and “highly effective.”2.Extent you agree with statement:We have clear alignment with the enterprise strategy across data,operations,technology,and security.Percentage reflects those who responded“to a large extent”and“to a very large extent.”High-per

35、forming tech leaders have significantly outpaced their peers in annual revenue growth and operating margin since 2020.+16%+10%+21%202020222023Operating marginAnnual revenue/budget growth+52%Compared to peers,the high-performing tech leaders are significantly more effective across several key operati

36、onal areas.All othersHigh-performing tech leadersAlignment of tech with enterprise strategy265%74%Product and service innovation142%49%Cybersecurity and data privacy143%56%Productivity145%57%“Deploying a generative AI capability has to be done in conjunction with complete wholesale business transfor

37、mation generative AI alone wont deliver the outcomes that a lot of CEOs are expecting.”Mark BreslinChief AI Officer,Informa PLCPerspectiveGoing all in on cloud and AIToday,tech leaders are prioritizing infrastructure investments,spending nearly one-third more on hybrid cloud than AI.Looking ahead,th

38、ey are fully committed to the power of cloud and AI together.Over the next two years,tech leaders expect to spend half their budget on the two combined.Hybrid cloudTraditional AIGenerative AICurrent spendProjected spend over next 2 years29%24%14%12%5%6%“Technology today as a stand-alone function doe

39、s not make sense;technology is there to reimagine and power the business.And this requires a much closer integration and collaboration with business leaders.”Mohammed Rafee TarafdarCTO,Infosys101We treat tech as an enabler but.Tech must be the core of everything we do.23We say we are working togethe

40、r but.Our collaboration is only skin-deep.We hope it will be a magic wand but.Generative AI could break our organization.We want it to be trustworthy but.Our AI may be irresponsible.456We talk about data as currency but.Our data could be a liability.We think our team is strong but.Were still fightin

41、g yesterdays talent battle.11The six blind spotsThese six blind spots challenge longstanding assumptions about the relationship of technology and the business.Some risks may be closer than they appear,even for the most sophisticated executives.Tech leaders will need to look in their mirrors and make

42、 a compelling case to their C-suite peers for why these blind spots are holding their organizations back in the quest for AI advantage.Just as drivers are taught to identify blind spots to avoid crashes,tech leaders must recognize both when“objects in mirror are closer than they appear”and when risk

43、s may be hidden from view entirely.Executives adept at navigating hazards safely,and at speed,can be the difference between making technology the core of an organizations competitive advantage and becoming a wreck on the side of the road.Innovation 1312Tech must be the core of everything we do.When

44、organizations see technology as an enabler,they treat it like a toolbox.They wait for problems tech can solve rather than exploring what new opportunities it creates.Only when they recognize technology as the transformative force at the core of innovation can organizations seize first-mover advantag

45、es,define markets,and gain economies of scale.“The biggest secret to digital transformation is to change your perspective.Its not about what you can do,its about whether you can deliver value to your customers in a rapidly changing environment.”XiaoLong HE CIO,VP of Digitalization,Tianshan Material

46、Co.,Ltd.CEOs have spoken:product and service innovation is their top priority over the next three years.And 62%are willing to take more risks than competitors to maintain an advantage.5 But tech leaders have a confession:only 43%say their technology organizations are effective at delivering differen

47、tiated products and services(see Figure 2).And to add salt to the wound,53%say other execs in their organization view tech as no more than moderately important to product and service innovation.This disconnect between technology and business suggests a massive change is needed.It starts with tech le

48、aders positioning technology as essential to business outcomes.They say resistance to change among management and employees are top barriers to innovation,so tech leaders must amp up their outreach to the organization on what and how technology can deliver.More importantly,organizations need a fresh

49、,bold approach to innovation.A staggering 70%of tech executives say their organization is taking a fast-follower approach,adapting others ideas or rolling out fixes rather than pioneering something radically new.Shayan Hazir,Chief Digital Officer of HSBC Singapore,observes,“We as technologists in fi

50、nancial services have tried to find problems for technology to solve,but I dont think were spending enough time addressing what emerging technology can enable meaningfully for customers,communities,and economies.”We treat tech as an enabler but.Innovation 1514To re-energize innovation for competitiv

51、e gains,tech leaders must look ahead for technology-fueled big bets.They need to shift from a project emphasis to a customer focus,prioritizing outcomes rather than features as well as execution accompanied by customer validation.6 They will need to avoid the ideation trap where many get caught:73%o

52、f business executives say their greatest strength is researching customer needs or ideation,but only 27%say their forte is executing or scaling product plans.7 Tech leaders must quickly bring the ideas to life.That requires them to evangelize a culture for innovationone based on pragmatic experiment

53、ation of high-potential ideasand then work to bring the rest of the C-suite on board.They can call on CFOs to help define the most promising possibilities and to join them in leading C-suite conversations about the importance of innovation to the organizations broader strategy.They need to encourage

54、 senior leaders to look beyond near-term concerns such as efficiency,cost takeout,and modest incremental gains.14Figure 2Business awaitsTech leaders are struggling to deliver CEOs number one objective.CEOs say product and service innovation is theirbut only 43%of tech leaders say they are effective

55、or highly effective at delivering product and service innovationtop priority over the next 3 years“We have this concept that we call open innovation because we cannot do all the innovation alone.Part of the work is finding the right partners.”Iosu IbarbiaTechnology Director,CAF(Construcciones y Auxi

56、liar de Ferrocarriles)1416Innovation 17Jump from the treadmill onto the launchpad.Create urgency for meaningful action that disrupts the impulse for incrementalism;pinpoint prudent precautions that encourage more confident risk-taking.Identify critical business problems to be solved by blending tech

57、 and business expertise on product and service development teams.Do the due diligence necessary to make leading practices real for your organization and define an investment strategy that takes necessary resource tradeoffs into account.Break your analysis paralysis with generative AI.Use generative

58、AI to synthesize customer feedback and analyze product usage insights to accelerate meaningful iteration.Establish a framework for evaluating and ranking potential solutions with generative AI.Ruthlessly cull efforts that dont support your objectives.Develop KPIs to measure solution success and use

59、generative AI to predict outcomes and simulate scenarios.Embrace a digital product innovation approach.Establish a digital product innovation framework for ideation,prototyping,testing,and launch.Incorporate security and governance as design considerations from the outset.Break down silos between te

60、ch and the business to enable rapid iteration that delivers timely experiences and products to customers.Create incentives that reward experimentation and smart risk-taking for solutions that improve productivity and innovation.What to doEscape the fast-follower treadmill by embracing revolution,not

61、 perfection.“How do we leverage whats good enough and push forward with it and then scale it?Traditional large organizations try to plan,strategize,and build a solution.And by the time you finish it,the technology and the landscape has changed.”Jimmy YeohCIO,DHL Express APECInnovation 19“Ive spent t

62、he last 12 to 18 months building an enterprise-wide digital brain trust across our organization,bringing together multifaceted teams that have been exceptional within their own product category or technology area but are creatives at heart.These people are now the catalysts within their own business

63、 areastheyre the ambassadors of change.When they go back to their day jobs,they infiltrate the mindsets of their teams.”Shayan HazirCDO,HSBC Singapore“We are now studying what kind of gen AI use cases can have the greatest value to customers.Once we figure out the framework,and when we start to actu

64、ally develop something,then we can invite some of our customers into the process.”Hiroshi Okuyama Director and Member of the Board,Chief Digital Officer Group Divisional Manager,Yanmar Holdings Co.,Ltd.18Case studyIBM Software embraces gen AI for design8IBM Software has defined an initiative around

65、identifying the“top 10”set of workflows in which it is actively embedding generative AI.The organization is incorporating generative AI into products and processes,automating workflows,improving output,and accelerating design.IBM Software is also training 100%of their designers in AI.In general,the

66、designers find it invigorating to learn new skills and keep current with cutting-edge AI technologyand they love the prospect of spending more time on the creative aspects of their job that theyre passionate about.In terms of synthesizing insights and crafting compelling content,IBM Design has seen

67、a 12%average daily time savings for content designers.In addition to content design,the organization is investigating how to incorporate generative AI across product management,UX design,content design,and research.Leadership 2120Our collaboration is only skin-deep.While finance and technology have

68、a history of working together,that history masks critical gaps in planning processes and decisions that are disjointed or ill-informed.Only when the finance-tech relationship evolves from siloed to inseparable will they drive smarter decisions linking technology investments to quantifiable business

69、outcomes and improving ROI.“We believe in cooperative leadership.We build a leadership mindset that relies on the collective intelligence of the team rather than individuals.”Moritz Hartmann Global Head Roche Information Solutions,Roche DiagnosticsThe AI race is just beginningand while it may not be

70、 won over the next two to three years,it can be lost over the next two to three quarters if finance and tech executives fall out of sync.While CFOs complain that tech decisions made in isolation by IT can lead to unsustainable costs,tech leaders know that shortsighted technology decisions can wreak

71、long-term havoc.Their insights on technology are integral to their organizations strategic and financial decisions,while finances input is critical to prioritizing technology investments.A historically tense relationship must become more collaborativenot just through words but in deeds.9 Two-thirds

72、of CEOs say that a strong partnership between tech executives and CFOs is critical to their organizations success.10 Technology leaders agreeCIOs,CTOs,and CDOs each rank the CFO as either the first or second most important relationship for driving their individual success.But the tech-finance relati

73、onship is still evolving from intention to practice.Only 39%of tech execs say they collaborate with finance to embed tech metrics into business cases.Similarly,only 35%of CFOs say theyve been engaged early in IT planning to set expectations on how technology advances enterprise strategy.11 We say we

74、 are working together but.“Theres no such thing as the business and IT.Were all one team.”Julia KnoxChief Technology and Analytics Officer,SobeysLeadership 2322However,our high-performing tech executives demonstrate the value of building a strong rapport between tech and finance leaders.They report

75、notably stronger collaboration across key operational practices(see Figure 3).Our analysis also shows that when finance connects technology investments to quantifiable business outcomes,the high-performing group reports higher revenue growth.To drive organizational results like our top performers,te

76、ch leaders must pivot from informing to collaborating with financerecognizing how finance can supercharge techs influence across the C-suite.They need to make themselves indispensable to finance and demonstrate their commitment to fiscal responsibility.At the same time,finance leaders need to meet t

77、ech halfway,looking beyond return on investment to understand how technology contributes to operational outcomes.Both sides should see the relationship as symbiotic,reinforcing mutual strengths so that its greater than the sum of its parts.“Technology decisions should be analyzed from a value perspe

78、ctive;what value will this decision bring to the business,the organization,and our clients.”Alberto Rosa CTO,CaixaBankFigure 3The tech-finance tangoHigh-performing tech executives are partnering with their finance peers to align strategies and capture value.Apply learnings to improve future digital

79、investmentsEmbed technology metrics into business casesEngage early in IT planning to set expectations on how technology advances enterprise strategy59%57%53%46%42%35%All othersTech high performersLeadership 2524Leadership 25Engage in aggressive diplomacy across the C-suite.Develop a deep understand

80、ing of the organizations financial drivers and leverage this knowledge to inform IT investment decisions.Identify and pursue ROI everywhere,including the financial and non-financial measures that are essential to tracking business objectives.Agree on a shared approach to creating and evaluating new

81、technology investments for competitive advantage.Make yourself indispensable to critical enterprise decisions.Seek opportunities to demonstrate the value of technical expertise in enterprise decision-making processes and engage allies to ensure your voice is recognized.Model your financial stewardsh

82、ip with a clear commitment to financial transparency and accountability.Seek ways to recapture costs to fund innovation efforts.Lead challenging organizational conversations,such as balancing the intense energy consumption of AI against organizational sustainability goals and commitments.Show your w

83、ork to build credibility.Frame technical discussions in financial terms,using data and analytics to demonstrate the value of IT investments and drive strategic decision-making.Quantify operational metrics in monetary terms.Gain greater fluency in financial performance metrics.Create a finance-facing

84、 dashboard that translates technology KPIs into financial measures(such as cost per user,revenue per customer,ROI).What to doAlign with finance to elevate your role as a strategic collaborator and advisor.“You need to be able tocollaborate more on the mid-and long-term objectives and stick to the st

85、rategy.”Kristian kerstrmxCIO/Head of IT&Digital,smart EuropeLeadership 2726Leadership 27 26“I think that in the future,there will be no essential contradiction between Chief Technology Officers and CFOs because they will both focus on a common goal of the companys successful future.I think they are,

86、for the most part,mutually supportive and cooperative relationships.”WeiWei Zhang CDO,Tianshan Material Co.,Ltd.Case studyThe Standard rationalizes cloud costs by aligning IT spend with key business priorities12Successful FinOps practices combined with Technology Business Management(TBM)exemplify th

87、e budding synergy between finance and technology.The disciplines of FinOps and TBM foster a collaborative culture that breaks down silos so organizations can translate cloud and other technology investments into value.The Standard,a leading provider of financial products and services,is realizing th

88、e benefits of adopting these practices.Facing a lack of transparency on key drivers of technology spending,the organizations business and IT teams were not working together efficiently.The company was relying on a legacy ERP system and spreadsheets to prepare the budget,analyze financial data,and ma

89、ke decisions about technology investmentsa manual and time-consuming process that was prone to error.The Standard implemented an IBM Apptio solution to build cost transparency,provide actionable insights,and enable faster decision-making.Adopting FinOps and cloud governance practices alongside the C

90、loudability product gave the company insights into its cloud spendingallowing it to drive greater accountability by enhancing cloud procurement and provisioning decisions.In addition,the Target process product helped the company improve its resource and program managementaligning team workstreams to

91、 business priorities,gaining greater visibility into consolidated workflows,and tracking dynamic variables like status,stakeholders,dependencies,and progress.The Standard has realized significant benefits.It has increased business/IT alignment and financial agility,with the IT Finance team now able

92、to focus 80%of its time on analysis,decision support,forecasting,and insights.The company has also gained more control over cloud spend,with projected savings of 10%in 2023 and even more in 2024.Additionally,the company improved its say:do ratio by 20%a measure of the gap between what the IT organiz

93、ation says it will do and what it actually delivers.The company plans to continue investments in cloud governance to drive similar business results across the organization.Infrastructure 2928Generative AI could break our organization.“When something suddenly becomes very important,but the foundation

94、 is not in place,then theres a lot of internal transformation we need to do to catch up.”Pochara Vanaratseath Head of Information Technology Group,Krungsri Bank“When you talk about the hardware and software stack,you are running into the issue of legacy things that you have to maintain.If you want t

95、o modernize it,its easy to say,but on the implementation side,its really difficult.”Tawatchai Cheevanon Chief Product and Business Solutions,Krung Thai BankBecause organizations hope generative AI will solve all their problems,they ignore the added stress it places on their existing infrastructure,a

96、mong other things.Only when they address their technical debt and transition from a patchwork of systems to a purpose-built technology foundation can organizations fully embrace the shift from+AI to AI+.Nearly three in four CEOs say their organizations digital infrastructure enables new investments

97、to efficiently scale and deliver value.13 But tech leaders have a different view.The scale and complexity of AI demands an infrastructure that supports its voracious appetite for data,compute,and storage.Only 16%of tech executives say theyre very confident their current cloud and data capabilities a

98、re fully ready to support generative AI.14 And 43%say their concerns about their technology infrastructure have increased over the past six months because of gen AI(see Figure 4).Even more concerning:other IBM IBV research reveals that only 29%of cloud IT assets and services are performing as requir

99、ed.The remaining 71%is essentially tech debt accumulated over years of piecemeal technology implementations.15 This burden is forcing organizations to divert energy and resources toward maintaining and troubleshooting outdated,disparate systemsnot executing bold ideas and future-focused initiatives.

100、We hope it will be a magic wand but.Infrastructure 31Figure 4Unfit for AIMany organizations dont have an AI-ready technology infrastructure.3043%of technology executives say generative AI has increased their infrastructure concerns.Tech leaders must tackle this weakness head-on,starting with a reali

101、ty check for other C-suite leaders.To catalyze AI transformation,organizations need a thoughtful infrastructure renovation,repurposing whats useful but also investing for the future.They need an architectural framework that helps intentionally optimize business value through technology while address

102、ing the entire technology estate:platforms,security,AI,cloud,and data.The goal is to build a launchpad that brings together disparate technologies and can support the business for years to come.16 Daimler Trucks Group CIO Marcus Claesson recognizes the value of modernizing architectures and operatin

103、g models.Since Daimler Trucks spun off from Mercedes-Benz,Claessons team has been rigorously rethinking and replacing outdated technology and redefining how work gets donenot an easy undertaking.“Its like going to the gym.Its difficult and painful,”he says.“But we come out in better shape with a bet

104、ter foundation for the future of the company.”As tech leaders ready for gen AI,infrastructure is wisely their top priority investment.In fact,organizations are actually allocating more toward hybrid cloud than AI itself:24%of their current spend versus 18%for traditional and generative AI.As part of

105、 this focus,careful selection of cloud partners becomes crucial to avoid risks such as vendor lock-ina concern shared by two in three tech leaders who are proactively identifying partner risks.An AI-optimized infrastructure isnt a one-and-done proposition.Tech leaders need to put in the work to alig

106、n investments to business outcomeswith an eye to minimizing the overhead associated with current technical debt and optimizing existing resources and capacity to free up funds for AI innovation.NearlyBut“You may deliver the technology,but if the business is not ready or the business is not along on

107、the journey,nothing moves.”Jimmy YeohCIO,DHL Express APECthree in four CEOs say their organizations digital infrastructure enables new investments to efficiently scale and deliver value.Infrastructure 3332Make paying off technical debt a business imperative.Refactor legacy systems for AI readiness.R

108、eframe legacy infrastructure challenges as business impediments preventing rapid gen AI adoption at scale.Rationalize applications and services based on criticality and potential for AI-driven transformation.Identify what is no longer relevant versus what can be sustained for now.Use gen AI code ass

109、istants to modernize applications for hybrid cloud and AI.Optimize your infrastructure for AI everywhere.Review the current state of your infrastructure with an eye toward AI everywhere.Factor elements including compliance and energy consumption into readiness assessments.Develop an AI transformatio

110、n roadmap based on whats needed to solve critical business problems.Draw lessons from cloud and design for security from the outset.Optimize cloud infrastructure for AI workloads that process and analyze large data sets.Unite your cloud and AI partnerships.Pick partners that share your values and go

111、als.Assess partners against clearly defined infrastructure requirements,including security and compliance.Move on from use cases and pilots.Understand how partners enable and support industrial-scale AI operations on hybrid cloud.Reorient your hyperscaler relationships by identifying and eliminating

112、 those in your ecosystem that do not accelerate your transition from a+AI to an AI+model.What to doRethink your technology strategy to support AI readiness.“The role of the CTO in organizations should be centered around defining clear principles and risks of technology,creating a robust architecture

113、 model that can manage the increasing complexity.”Alberto RosaCTO,CaixaBank Infrastructure 3534“Today,we must concern ourselves about the products we can deliver.And,we must make sure we dont have a big chunk of tech debt.IT leaders must always modernize.”Hong Giep TohCIO,Singapore Land AuthorityCas

114、e studyAudi creates a stable,scalable environment for development across cloud platforms18Audi needed to create a stable,scalable environment for innovative development.This required them to provision project environments faster to be able to build,deliver,and scale diagnostics,data management,and o

115、ther projects across clouds.Audi also sought to reduce risks and remove dependencies with a flexible,modular architecture that could support iterative work.Audi created a new as-a-service development environment based on Red Hat OpenShift,enabling Audis platforms,applications,and projects for innova

116、tive development at scale.Audi reduced time to market by up to six months.With a common foundation,developers were able to work more efficiently to create,deliver,and migrate solutions across on-premises and cloud environments.Application scalability improved to meet demand.AI 37“My goal is to make

117、sure that my customers can sleep soundly at night knowing that theyre protected and that they can continue to trust me as an institution.”Ian Cramb COO,UBPOur AI may be irresponsible.When organizations think their AI is trustworthy,they underestimate how it amplifies the risks associated with trust

118、and privacy.Only when they shift from a reactive risk posture to a proactive culture of integrity will they build distinctive trust,position themselves to seize opportunities others are unprepared to pursue,and achieve meaningful differentiation at scale.In a market saturated with AI-powered product

119、s and services,public trust is declining.19 So its not surprising that nearly three in four CEOs(71%)say establishing and maintaining customer trust will have a greater impact on their organizations success than any specific product or service.20 And for the majority(80%)of CEOs,transparency in thei

120、r organizations use of next-generation technologies such as gen AI is critical for fostering that trust.21 What CEOs may not realizebut tech executives knowis that their foundation for trustworthy AI is shaky.While 65%of tech leaders say they have governance in place for AI workflows,they acknowledg

121、e that they arent delivering on key responsible AI practices such as explainability,transparency,fairness,and privacy(see Figure 5).“Before implementing a comprehensive AI strategy,it is crucial to consider the governance issues surrounding it,as well as the applicability of legislation to your spec

122、ific environment.”Nthabiseng Mosupye Chief Technology Information Officer,Rand Water36We want it to be trustworthy but.AI 39Responsible AI is no longer a choice.Its a cultural imperative.Widespread AI adoption pulls back the curtain on an organizations data,processes,and decision-making,helping stak

123、eholders see more of whats happening.But it may also expose too much to competitors,so tech leaders need to balance transparency with discretion by developing a purposeful strategy that recognizes visibility into its use of AI as a competitive opportunity.Tech executives must also consider and commu

124、nicate the risks of scaling AI beyond just a use case to full-blown integration into employees daily lives organization-wide.With AI everywhere,breaking rules is childs play.Any employee can expose confidential data in a public model or misuse an AI-powered tool because they dont have proper trainin

125、g.“We should give technologists a leading voice to help people understand the security implications,the privacy implications,the other societal implications,”says Ed McLaughlin,President and CTO,Mastercard.Finally,tech leaders need a new mindset on risk.A cautious wait-and-see approach results in mi

126、ssed opportunities and falling behind competitors.“We can shift our perspective on risk so that it can serve as an enabler of great delivery and great technology solutions,”notes Julia Knox,Chief Technology and Analytics Officer at Sobeys.Emerging regulations such as the EU AI Act define degrees of

127、risk and help organizations understand where to focus.22 Poised at the helm,tech leaders can attack AI risks head-on to turn potential liabilities into differentiating advantages.Developing a responsible AI framework,investing in AI ethics,and providing AI training and education are just a few of th

128、e steps they can take.Being proactive helps build trust with stakeholders while finding that sweet spot between the risks and rewards of AI.38Figure 5Falling shortMost organizations arent delivering core responsible AI capabilities at scale.Percent of organizations delivering capabilities to a large

129、/very large extent50%ExplainabilityPrivacyFairness(non-bias)Transparency46%45%37%AI 4140Build bridges,not walls.Communicate openly about your values and approach to responsible AI development and deployment.Be transparent about data collection practices and how you protect personal data.Have clear l

130、ines of accountability and processes for supporting customers.Acknowledge how generative AI impacts experiences and engage with customers,employees,and other stakeholders to address their concerns and questions.Be a champion of responsibility.Refocus on the risks of scaling and AI“drift.”Define what

131、 you must control and defend where you lack leverage.Make technology a leading voice in responsibility and accountability.Educate employees on AI ethics and the responsible use of AI.Build a more diverse workforce to support development of unbiased data and models.Make AI risk your ally.Purposefully

132、 position the organization to seize opportunities while others chase compliance.Document everything to accelerate governance policies and controls.Engage with your local jurisdiction leaders and industry associations to advocate for AI regulations that balance public and private interests.Pick busin

133、ess partners with the right values and capabilities to deliver responsibly and effectively.Incorporate responsible computing principles into procurement contracts.What to doRecognize your outcomes are only as strong as your values.“With generative AI,we are seeing new regulations.The aspects relevan

134、t to responsible AI are evolving along with the technology.So we are moving toward a model of how do I manage the risk?”Mohammed Rafee TarafdarCTO,Infosys42Case studyTalent 43PerspectiveGreen IT in the age of gen AIThe impact of gen AI on sustainability is a double-edged sword.On the one hand,the te

135、chnology supports sustainable development by optimizing resource usage,reducing waste,and improving efficiency.It can also help organizations efficiently manage their sustainability reporting and compliance.24 Recent IBM IBV research found that executives are starting to apply gen AI capabilities to

136、 application development and green coding initiatives as well as data center layoutcritical pieces of sustainability programs.25 But tech executives are also realizing that the development and deployment of AI models requires significant energy expenditures.This contributes to greenhouse gas emissio

137、nsa point of concern for 82%of tech executives.26 The increasing electricity demand for data centers highlights the need for energy-efficient methods to train,tune,and run AI models.27 Tech leaders see that business value in sustainability extends beyond the tech stack and tech function:most are pri

138、oritizing energy-efficient tech solutions(75%)and collecting data to track progress toward sustainability(69%).Not only is this commitment important for their own operations,it drives broader bridge-building to their CFO and CEO counterparts,who are responsible for sustainable investments and public

139、 shareholder filings.Indeed,74%of tech executives describe environmental sustainability as more of an opportunity than a risk.Prioritizing sustainable practices in AI development and deployment positions organizations to have an impact beyond their environmental footprint.“As an executive,I need to

140、be an expert on sustainability.”Greg Lavender CTO,IntelAI 43IBM system translates to more compliance,less work23 Managing responsible AI is easier said than done,given the anticipation of a large influx of regulations.IBM strives to keep AI a positive force for change,and that means holding itself a

141、ccountable to the AI principles the company has established.The IBM Office of Privacy and Responsible Technology had seen a similar situation with GDPR compliance.They built the Privacy and AI Management System(PIMS)to handle global oversight of GDPR and other privacy regulations.Now they have augme

142、nted the tool to help document and track compliance across AI operations as well.The upgraded PIMS offers a centralized,company-wide platform to capture,integrate,and make transparent the metadata related to data privacy and the entire AI lifecycle,from design to deployment to everyday use.PIMS regi

143、sters new instances of AI that are put into production by IBM and instances of other algorithmic systems.PIMS adds them to a centralized,company-wide workflow and assesses them for potential risks.And once the model is live,the solution provides ongoing monitoring for fairness,quality,and drift.At t

144、he same time,as new regulations are passed,PIMS can be used to import these requirements,updating governance models and overall risk assessment efforts.“Rather than having every asset,every individual,every application,every business process monitored by the process ownerand forcing them to work out

145、 what laws need to be complied withwe mask that complexity,”explains Lee Cox,Integrated Governance&Market Readiness,IBM Office of Privacy and Responsible Technology(OPRT).“With PIMS,now they only have to focus on the automatically generated remediation tasks.That translates to thousands of hours of

146、effort saved across all of IBM.”Data 4544Our data could be a liability.“Generative AI has allowed us to lower barriers between business units by sharing business unit-owned data.”Kazushi Kuse Executive Vice President,Asahi Kasei Corporation Two-thirds of CFOs say their C-suite has the data needed to

147、 quickly capitalize on new technologies.28 Tech execs say not so fast.Only 29%of tech leaders strongly agree their enterprise data meets the quality,accessibility,and security standards that support the efficient scaling of generative AI(see Figure 6).In fact,for 45%,their angst about data accuracy

148、or bias has increased in the last six months because of gen AI.Enterprise data may appear integrated on a screen,but beneath the surface,collection and integration are often cobbled together manually.This prevents detailed analysis and risks stoking distrust and a retreat to silos.Too few organizati

149、ons have implemented critical data capabilities such as a data fabric architecture(48%),enterprise data standards(42%),customer(46%)or product(35%)master data,or a common data model(44%).Without these,it will be difficult for an organizations data to support aspirations for production-level,industri

150、al-scale AI.Its past time for technology leaders to escalate the data management discussion beyond their own circles and into the enterprise spotlight.One way to bring all the parties to the table is to collaborate on governance,risk,and compliance(GRC).GRC provides a structured approach for alignin

151、g IT and the business.29 It standardizes data management around a set of core practices.For example,data is not necessarily a technical asset;its a business asset that requires ownership and accountability within the business functions.We talk about data as currency but.When organizations focus on d

152、ata as currency,they fail to take the critical steps necessary to transform their dirty distributed data into a consistent end-to-end asset.Only when organizations commit to moving data management from backstage to top billing do they establish a corpus of integrated trusted data that frees them to

153、explore the art of the possible with AI.Data 4746Likewise,data quality issues often stem from inadequate data governance,not technical limitations.GRC requires a focus on processes,policies,and procedures enterprise-wide to drive data accuracy,completeness,and consistency.Ipek Ozsuer,Chief Digital&I

154、nformation Officer,dsm-firmenich,notes that governance is paramount to making data a differentiator.“You must have strong visibility into your own data,manage it right,then turn that data into a competitive advantage,”she says.“Thats why governance becomes very,very important.”Data-related risks,suc

155、h as breaches or regulatory exposures,are also addressed by a GRC-driven,organization-wide focus on risk and compliance management.This includes identifying and managing cybersecurity threats as well as educating employees on risks and policies.High-performing tech executives are implementing effect

156、ive data management practices for positive business results.Mature GRC practices position organizations to turn data management into a competitive differentiator.They can pivot more effectively as new AI regulations continue to emerge,and they can create value more quickly and efficiently from their

157、 data.Figure 6Data disconnectCFOs certainty is overshadowed by tech execs doubts.4629%of technology leaders strongly agree their enterprise data has the necessary quality,accessibility,and security to enable efficient scaling of gen AI.67%of CFOs say their C-suite has the data necessary to quickly c

158、apitalize on new technologies.but only“Data privacy and cybersecurity are now more important than ever.As technology leaders,we have to collaborate to build the technology practices and infrastructure that allow for responsible and secure AI operations.”Marwan Bin HaidarEVP Innovation&The Future,DEW

159、ATalk about outcomes,not about data.Focus on shared objectives by finding a common language with the business based on enhancing the customer experience and delivering outcomes.Use storytelling and scenario-based exercises to drive tech and the business to a shared understanding of the customer jour

160、ney and pain points.Identify key business metrics and outcomes that are critical to the organizations success at both the enterprise and the business unit level.Drain your data swamp.Pivot from collecting more data to curating the most important data,starting with a clear vision and strategy for dat

161、a curation,aligned with business objectives.Expose the current data landscape and its limitations,highlighting the gaps between business needs and data capabilities.Develop a roadmap for data curation,including milestones,timelines,and resources required.Emphasize the business case for investment in

162、 each stage of data management.Accelerate your speed to decisions.Leverage tech to make data insights easily accessible and understandable to the people who need them and can act on them.Design interfaces that enable reliable analysis.Establish a unified data governance framework to define how your

163、organization collects,organizes,stores,prepares,and uses its data for each level of decision-making.Improve data visibility by creating a data catalog that provides a centralized inventory of available data,including metadata,data quality,and usage information.Data 4948What to doPurposefully pursue

164、effective data management.“If youre talking about the data,security is something that we cannot compromise.That is most critical.Whatever we do together,the data has to be secure.”Tawatchai CheevanonChief Product and Business Solutions,Krung Thai Bank“We now have the rule that all data owners must s

165、hare their data with anyone who wants to use the data in our organization.This speeds up the use of dataand the combination of data.People can start experimenting faster instead of going through committees.”Hauke StarsMember of the Board,IT&Data,Volkswagen AGData 5150“We are trying to overcome the c

166、hallenges of gen AI by creating the data governance and control framework so that our stakeholders are satisfied with the infrastructure,the LLMs large language models,and the explainability while avoiding hallucinations.”Arun MehtaCDAO,Head of Analytics&AI,First Abu Dhabi Bank(Bank FAB)Samsung Elec

167、tro-Mechanics,a leading electronic components manufacturer,struggled to manage vast amount of data generated from various sources,including production inputs,facility data systems,and yield analysis systems.The data was scattered across different systems,making it difficult to locate,standardize,and

168、 use quickly and efficiently.In search of a solution that would help the company integrate and manage data in a scalable and secure manner,Samsung Electro-Mechanics chose an IBM Cloud Pak for Data and IBM Watson Knowledge Catalog solution to build a robust data platform.The platform allows for data

169、integration,observability,master data management,and data governance and security.The company was able to connect its data sources,including Impala,SAP HANA,Oracle,and MS SQL,and create a centralized data repository.With self-service functionality,the platform improved data accessibility and reduced

170、 the time for users to complete tasks from 30 days to 10 days or less.It enhanced data governance by enabling the company to manage personal and sensitive information according to its strict governance principles.And it has been able to scale data management:the solution grew from connecting five or

171、 six data systems to more than 20.Case studySamsung Electro-Mechanics leads with trusted data30Talent 5352Were still fighting yesterdays talent battle.“AI empowers and then multiplies the abilities of talented people.”Pere Nebot CIO,CaixaBankBecause organizations are still fighting yesterdays talent

172、 battle,they become mired in workforce development efforts that deliver,at best,incremental productivity gains.Only when they prioritize an operating model that recognizes critical expertise and puts human-machine partnerships at the center of innovation do they unleash self-reinforcing cycles of in

173、novation and growth.Two-thirds of CEOs say their teams have the knowledge and skills to incorporate new tech such as generative AI.31 Only half of tech leaders share this optimism.For generative AI expertise specifically,40%of tech executives say their anxiety has increased over the past six months.

174、On the front line with their teams,tech leaders face a vexing reality when it comes to talent.Nearly six in ten(58%)say they are struggling to fill key roles(see Figure 7).And they dont expect long-standing talent shortages in critical areas to get better any time soon.Over the next three years,they

175、 anticipate skill scarcities to increase in cloud(+36%),AI(+29%),security(+25%),and privacy(+39%).At the same time,they expect 30%of their existing technology workforce will need retraining or reskilling over the next three years.Tech executives know their workforce is critical.Nearly two in three(6

176、3%)say their competitiveness will hinge on their ability to attract,develop,and retain top tech talent.But it competes with other priorities on the agenda;more than half(54%)of tech executives blame financial pressures for hindering their ability to invest in technology talent.We think our team is s

177、trong but.54Figure 7The tech talent divideCEOs are confident;tech leaders are challenged.66%of CEOs say their teams have the knowledge and skills to incorporate new tech such as generative AI.58%of tech leaders say they are having difficulty filling key technology roles.butTech leaders need to spark

178、 an epiphany across their organizations:the future of work isnt just about finding more peopleits about unleashing the full potential of existing talent.This requires radically rethinking roles,learning pathways,and work processes.32 Its about fundamentally changing the operating model to harness th

179、e power of new technologies and innovative ways of working.According to IBM IBV research,organizations that prioritize operating model transformation over workforce skills development outperform peers.This means adopting agile methodologies where teams work toward goals rather than ticking off tasks

180、.It involves investing in reskilling and upskilling versus outside hiring.It means scrutinizing processes and job roles to identify areas ripe for change.And it involves leveraging data to reimagine processes and turning to ecosystem partners to plug skills gapsa tactic many tech leaders(69%)are alr

181、eady embracing.33These strategies reorient organizations around a revamped operating model where productive human-machine partnerships can thrive.Generative AI opens the door to radically transformed technology operations by augmenting tech teams with critical time-saving capabilities.It helps with

182、developing faster,higher quality code,automating labor-intensive tasks,streamlining knowledge sharing and transfer,and simplifying complex tasks such as log inspection.These advances free professionals to focus on skills that are critical for working person-to-person in the AI era:creativity,empathy

183、,and complex problem-solving.Tech leaders have full platesits easy to see how talent challenges get pushed to the side.But in a marketplace where technology is essential but alone does not deliver sustainable differentiation,aligning tech and talent with an eye toward the future is what creates last

184、ing advantage.“What are the things that humans could never do?Were not actually automating the toil that was there before.You can now create capabilities and value that were never possible.”Ed McLaughlinPresident and CTO,MastercardTalent 55Talent 5756Redefine the roles and skills needed in tomorrows

185、 enterprise.Lead your organization to explore what the fusion of talent and tech can do that is net new and creates fresh sources of growth and transformation.Reject the automation of bad or outdated processes.Use process mining to analyze how work is done and where bottlenecks or inefficiencies can

186、 be eliminated.Redesign job roles to reflect new ways of working that amplify the strengths of people and machines performing together.Corner the market on the talent you need.Develop strategic partnerships that leverage complementary skills and expertise.Keep high-value skills in house and leverage

187、 partners for easier-to-source skills.Tap partners for exceptional talent with high-demand skills and to manage capacity fluctuations.Identify and invest in the critical indirect areas necessary to maintain effective operations and drive growth.Deliver irresistible employee experiences.Develop a com

188、prehensive employee experience strategy that includes technology,culture,and processes.Let your workforce define how they use AI to help them work better and faster.Turn reskilling and upskilling into advancement opportunities.Establish AI academies or centers of excellence where employees can devel

189、op their proficiency.“The role of the CIO is not technology-centric anymore.You need to be a people person as well,understand your team,how to put the right person in the right job.”Pochara VanaratseathHead of Information Technology Group,Krungsri BankWhat to doPrioritize a people-centric approach t

190、o technology operations.PerspectiveDoubling the tech talent pool:Advocating for women in AI“One piece of wisdom that comes back again and again is:clear roles,clear goals,and clear accountability.If you hire people with ill-defined goals,ill-defined roles,and you dont enable and support them in achi

191、eving what they need to achieve,no wonder they fail.”Greg LavenderCTO,Intel“And if I bring more women to AI,in addition to breaking the bias,they will bring a more observational side,a more sympathetic side,a holistic side.”Marisa Reghini Ferreira Mattos Chief Technology and Digital Business Develop

192、ment Officer Banco do BrasilTalent 5958Creating the future of human resources34What are the key roles people must play in the augmented workforce?And how can HR optimize human-machine partnerships?Integrating AI and automation into daily work is not necessarily easy.But IBM HR is blazing a trail.Fro

193、m creating a next-level digital assistant to streamlining IBMs promotion process,the organization knew technology could save employees time and make it easier for them to deliver on strategic goals.Pulling data for thousands of employeesstored in multiple massive spreadsheetsinto a single,unified sy

194、stem got the ball rolling.With this data in hand,IBM HR was able to use a digital worker to compile employee data into a dashboard that managers could use to assess performance and help employees make progress toward personal goals.The digital worker gives managers the information they need to make

195、smarter,faster decisionsit doesnt make the decisions for them.In one North America pilot,IBM HR saw impressive time savings.They were able to reduce the time it took each manager to nominate employees for promotions from eight hours to one houra total reduction of roughly 12,000 hours per quarter.As

196、 a result of this success,IBM has started to roll this digital assistant out to other regionswith potential time savings estimated at up to 50,000 hours per year.Automation also reduced the process from 10 weeks to six weeks,which allows the HR support team to focus more on coaching individual manag

197、ers.Plus,they can now analyze the data from the nominations to provide insights to the wider enterprise.This solution exemplifies how automation and AI can move humans up the value chain while significantly accelerating decision-making.Case studyGen AI is creating new urgency around the lack of wome

198、n in the historically male-dominated field of IT.In the 2024 IBM IBV annual womens study,67%of female executives said there arent enough women leading conversations about generative AI.When bias plays out as harmful or inaccurate AI model outputs,a diverse workforce becomes a safeguard for improving

199、 trust and brand equity.35“If 70%,80%of IT professionals are men,its obvious that AI is going to be coded with bias,”notes Marisa Reghini Ferreira Mattos,Chief Technology and Digital Business Development Officer at Banco do Brasil.“And if I bring more women to AI,in addition to breaking the bias,the

200、y will bring a more observational side,a more sympathetic side,a holistic side so the potential is enormous.”Almost half of women in the annual IBM IBV womens study are concerned that AI-driven automation will replace them.36 The AI revolution presents an opportunity for women to change the conversa

201、tion,taking the reins to help identify potential problems with AI while also demonstrating the value they bring to the tech leadership discussion.Tech leaders need to encourage women to become IT and AI subject-matter experts to not only increase the talent pool,but to gain the critical perspectives

202、 that will shape AI transformation going forward.Conclusion 6160“With the emergence of gen AI,tech leaders are in the drivers seat.But the accelerator is stuck to the floor,so we have to steer as much as we can,while trying not to step on the brakes too much.”Hong Giep TohCIO,Singapore Land Authorit

203、y“Each board meeting,I use the opportunity to talk about a positive impact of IT on the business.This helps to increase the understanding of the importance and impact of IT.”Hauke StarsMember of the Board,IT&Data,Volkswagen AGConclusionThe AI revolution is underway Tech leaders must be honest with t

204、hemselves and others to navigate AIs challenges and unlock its opportunities.In the AI era,the stakes are high and the influence of tech leaders is even higher.AI is transforming the very fabric of businessfrom reimagining the way people work,to how leaders weigh options and place bets,to reinventin

205、g customer experiences and relationships.But to get there,tech executives must lead their organizations past the blind spots hindering their AI transformation.They will need to orchestrate critical conversations that synthesize technology and business to push the performance envelopebalancing the ne

206、ed for speed and innovation with the realities of governance and fiscal responsibility.This is not a time for incremental thinking.Todays technology leaders must be bold and visionary to give life to a winning strategy.It requires a shift from tech silos to business drivers,from risk-averse thinking

207、 to risk-savvy decisions,and from fast followers to innovators and difference makers.Much as cloud revolutionized the approach to industrial-scale computing,the emergence of gen AI and AI for business represents a career-defining moment for technology leaders.Tech executives who successfully harness

208、 AIs power with responsible and trustworthy solutions will propel their organizations ahead of the competition.6262Research methodology and analysisThe IBM Institute for Business Value(IBM IBV),in cooperation with Oxford Economics,surveyed 2,500 C-suite technology leaders,including Chief Technology

209、Officers(CTOs),Chief Information Officers(CIOs),and Chief Data Officers(CDOs)during Q1 2024.Respondents spanned 26 industries and 34 locations worldwide.Separately,a small group of executives was engaged for in-depth,qualitative interviews.These discussions focused on key insights from the study and

210、 the executives on-the-ground experience leading technology for organizations in the new era of AI.This provided invaluable perspectives on the challenges and opportunities of developing and delivering AI-oriented technology capabilities at scale.The IBM IBV data analytics team performed a series of

211、 in-depth analyses and data transformations to uncover deeper relationships between complex and emergent phenomena,such as which behaviors drive specific benefits and which factors are accelerating the realization of AI value.As part of this data analysis,a group of high-performing technology organi

212、zations was identified,corresponding to clear-cut performance on a variety of financial and operational measures.Those in this group are more likely to excel in strategy development and execution,exhibit strong collaboration between business and finance leaders when it comes to technology investment

213、 decisions,place an emphasis on measuring outcomes and value from their digital initiatives,and have comprehensive visibility into how technology is enabled and supported across the organizationwhether at the line-of-business,geography,or functional levels.63Notes and sources1 2024 Global C-Suite Se

214、ries:6 hard truths CEOs must face:How to move forward with courage and conviction in the age of AI.IBM Institute for Business Value.May 2024.https:/ibm.co/c-suite-study-ceo2 2024 Global C-Suite Series:6 hard truths CEOs must face:How to move forward with courage and conviction in the age of AI.IBM I

215、nstitute for Business Value.May 2024.Unpublished data;2023 Global C-suite Series:CEO decision-making in the age of AI:Act with intention.IBM Institute for Business Value.June 2023.Unpublished data.3 2024 IBM Institute for Business Value survey of 2,000 Chief Financial Officers.2024.Unpublished data.

216、4 2024 Global C-Suite Series:6 hard truths CEOs must face:How to move forward with courage and conviction in the age of AI.IBM Institute for Business Value.May 2024.https:/ibm.co/c-suite-study-ceo5 Ibid.6 Harper,Scott,Joni Saylor,Dixie Adams,Matt Gierhart,and Nisha Kohli.Digital product alchemy:5 le

217、ssons in driving revenue through customer obsession.IBM Institute for Business Value.May 2024.https:/ibm.co/digital-product-alchemy7 Harper,Scott,Joni Saylor,Dixie Adams,Matt Gierhart,and Nisha Kohli.Digital product alchemy:5 lessons in driving revenue through customer obsession.IBM Institute for Bu

218、siness Value.May 2024.Unpublished data.8 Harper,Scott,Joni Saylor,Dixie Adams,Matt Gierhart,and Nisha Kohli.Digital product alchemy:5 lessons in driving revenue through customer obsession.IBM Institute for Business Value.May 2024.https:/ibm.co/digital-product-alchemy9 Shacklett,Mary E.“Optimizing th

219、e CIO and CFO Relationship.”Information Week.April 13,2021.https:/ Institute for Business ValueFor two decades,the IBM Institute for Business Value has served as the thought leadership think tank for IBM.What inspires us is producing research-backed,technology-informed strategic insights that help l

220、eaders make smarter business decisions.From our unique position at the intersection of business,technology,and society,we survey,interview,and engage with thousands of executives,consumers,and experts each year,synthesizing their perspectives into credible,inspiring,and actionable insights.To stay c

221、onnected and informed,sign up to receive IBVs email newsletter at can also follow us on LinkedIn at https:/ibm.co/ibv-linkedin.The right partner for a changing worldAt IBM,we collaborate with our clients,bringing together business insight,advanced research,and technology to give them a distinct adva

222、ntage in todays rapidly changing environment.10 2024 Global C-Suite Series:6 hard truths CEOs must face:How to move forward with courage and conviction in the age of AI.IBM Institute for Business Value.May 2024.https:/ibm.co/c-suite-study-ceo11 2024 IBM Institute for Business Value survey of 2,000 C

223、hief Financial Officers.2024.Unpublished data.12“Apptio Helps The Standard Optimize Cloud Costs and Align IT Spend With Key Business Strategies.”IBM Apptio case study.Accessed August 19,2024.https:/ 2024 Global C-Suite Series:6 hard truths CEOs must face:How to move forward with courage and convicti

224、on in the age of AI.IBM Institute for Business Value.May 2024.https:/ibm.co/c-suite-study-ceo 14 From chaos to cash:How hybrid by design creates business value.IBM Institute for Business Value.May 2024.https:/ibm.co/from-chaos-to-cash15 Ibid.16 Ibid.17“Audi builds developer environment with Red Hat

225、OpenShift.”Red Hat case study.September 9,2021.https:/ builds developer environment with Red Hat OpenShift.”Red Hat case study.September 9,2021.https:/ Marr,Bernard.“As AI Expands,Public Trust Seems to be Falling.”Forbes.March 19,2024.https:/ 2024 Global C-Suite Series:6 hard truths CEOs must face:H

226、ow to move forward with courage and conviction in the age of AI.IBM Institute for Business Value.May 2024.Unpublished data.21 Ibid.64 Copyright IBM Corporation 2024IBM Corporation New Orchard Road Armonk,NY 10504Produced in the United States of America|August 2024IBM,the IBM logo,and and Apptio are

227、trademarks of International Business Machines Corp.,registered in many jurisdictions worldwide.Other product and service names might be trademarks of IBM or other companies.A current list of IBM trademarks is available on the web at“Copyright and trademark information”at: Hat and OpenShift are regis

228、tered trademarks of Red Hat,Inc.or its subsidiaries in the United States and other countries.This document is current as of the initial date of publication and may be changed by IBM at any time.Not all offerings are available in every country in which IBM operates.THE INFORMATION IN THIS DOCUMENT IS

229、 PROVIDED“AS IS”WITHOUT ANY WARRANTY,EXPRESS OR IMPLIED,INCLUDING WITHOUT ANY WARRANTIES OF MERCHANTABILITY,FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTY OR CONDITION OF NON-INFRINGEMENT.IBM products are warranted according to the terms and conditions of the agreements under which they are provi

230、ded.This report is intended for general guidance only.It is not intended to be a substitute for detailed research or the exercise of professional judgment.IBM shall not be responsible for any loss whatsoever sustained by any organization or person who relies on this publication.The data used in this

231、 report may be derived from third-party sources and IBM does not independently verify,validate or audit such data.The results from the use of such data are provided on an“as is”basis and IBM makes no representations or warranties,express or implied.7O5E73GP-USEN-0222“High-level summary of the AI Act

232、.”EU Artificial Intelligence Act.Accessed July 24,2024.https:/artificialintelligenceact.eu/high-level-summary/23“Building trust in AI.”IBM case study.Accessed July 25,2024.https:/ Abbosh,Oday and Christina Shim.“AI this Earth Day:Top opportunities to advance sustainability initiatives.”IBM Think Blo

233、g.April 22,2024.https:/ IBM Institute for Business Value Green IT survey of 750 executives.2024.Unpublished data.26 Goehring,Brian,Manish Goyal,Ritika Gunnar,Anthony Marshall,and Aya Soffer.The ingenuity of generative AI:Unlock productivity and innovation at scale.IBM Institute for Business Value.Ju

234、ne 2024.Unpublished data for 300 tech leaders.27“For the planet and people:IBMs focus on AI ethics in sustainability.”IBM Think Blog.April 22,2024.https:/ 2024 IBM Institute for Business Value survey of 2,000 Chief Financial Officers.2024.Unpublished data.29“What is GRC(Governance,Risk,and Complianc

235、e)?”IBM website.Accessed July 25,2024.https:/ with trusted data.”IBM case study.Accessed August 9,2024.https:/ 2024 Global C-Suite Series:6 hard truths CEOs must face:How to move forward with courage and conviction in the age of AI.IBM Institute for Business Value.May 2024.Unpublished data.32 Goldst

236、ein,Jill,Bill Lobig,Cathy Fillare,and Christopher Nowak.Augmented work for an automated,AI-driven world:Boost performance with human-machine partnerships.IBM Institute for Business Value.August 2023.https:/ibm.co/augmented-workforce33 Ibid.34”Creating the future of human resources.”IBM case study.Accessed August 9,2024.https:/ Lin,Salima and Joanne Wright.Forging the future of AI:Women can take the lead.IBM Institute for Business Value.March 2024.https:/ibm.co/women-leadership-ai36 Ibid.