CEOs say AI is the top disruptive technology

CEOs globally believe that artificial intelligence is the technology most likely to significantly impact their industry in the next three years, according to a new report from Gartner.

“Generative AI will profoundly impact business and operating models,” said Mark Raskino, Distinguished VP Analyst at Gartner.

“However, fear of missing out is a powerful driver of technology markets. AI is reaching the tipping point where CEOs who are not yet invested become concerned that they are missing something competitively important.”

The 2023 Gartner CEO and Senior Business Executive Survey was conducted from July through December 2022 among over 400 CEOs and other senior business executives in North America, Europe, Asia/Pacific, Latin America, the Middle East and South Africa, across different industries, revenue and company sizes.

The results indicate a range of concerns largely based on business challenges arising from external forces. Environmental sustainability is ranked among CEOs’ top 10 priorities for the first time. Fifty-five per cent of CEOs believed an economic downturn or recession in 2023 will be shallow and short; and 26% cited talent shortage as the most damaging risk for their organisation.

The ANZ outlook

From an ANZ perspective, Brian Ferreira, VP and executive programs team manager at Gartner, said there are notable differences in the focus of public and private sector CEOs.

“Market messages in ANZ are mixed, with trends towards stable inflation and recession not forthcoming. Commercial CEOs are targeting growth and are more concerned about inflation and recession, possibly not being shallow and short. Whereas government CEOs are concerned about increasing debt, targeting constrained economic support, and curbing additional spending,” he said.

“ANZ CEOs are open to spending more on technology if it supports growth or holds market share, which is why it continues to be a top priority. In some cases, they chose to increase spending risk for better technology outcomes rather than waiting for technology to prove itself and possibly risk business stability.

“Generative AI has taken off in ANZ with many organisations commencing new business, client and operating efficiencies. Fast adopters are already upskilling all staff on AI capabilities and view generative AI as a new core business capability that will impact industries and business models.

“With growth and technology top of mind, it has become more evident for ANZ CEOs that the combination of technology adoption together with a capable workforce is a critical business asset for future success.

“We’re seeing an increase in efforts to ensure solid talent programs are integrated with technology transformation. This is the defence for managing inflation by ensuring the business adopts operating efficiencies and holds market share by not passing on inflationary costs to customers. ANZ CEOs are vocal to the federal government, asking for more flexibility and opportunities for migrant talent.

“ANZ CEOs recognise they need to work with leaders and boards on adopting a more aggressive risk appetite. They’re more willing to fail for the right reasons and adjust instead of losing business or talent,” Ferreira said.

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