AI News Bureau
Despite 77% of CEOs believing AI marks the start of a new era in business, most say their executive teams lack the skills to lead the transformation.
Written by: CDO Magazine Bureau
Updated 7:04 PM UTC, Mon May 19, 2025
A new survey from Gartner reveals a widening gap between CEO expectations and their confidence in executive leadership’s readiness for artificial intelligence. While a majority of CEOs view AI as the catalyst for a new era of business, few believe their teams are prepared to navigate it.
The Gartner CEO and Senior Business Executive Survey, based on responses from 456 CEOs and senior leaders worldwide, found that only 44% of CIOs are viewed by their CEOs as “AI-savvy”. The survey highlights growing concern that most C-suite leaders lack the expertise required to manage AI’s sweeping impact.
“We’ve never seen such a disproportionate gap in CEO perceptions around technology disruption,” said David Furlonger, Distinguished VP Analyst and Gartner Fellow. “AI isn’t just another step in digital transformation — it’s a seismic shift in how business and society function.”
The report also reveals that chief data officers (CDOs) and chief information security officers (CISOs) are similarly seen as falling short in AI competency. This echoes findings from Gartner’s 2019–2020 research, which flagged low digital readiness at the executive level.
Beyond executive expertise, CEOs identified two major barriers to successful AI deployment:
These concerns align with Gartner’s broader analysis that companies must evolve beyond adopting AI tools — they need to rethink workflows, culture, and decision-making.
“CEOs have shifted their view of AI — from a productivity tool to a transformative way of working,” said Jennifer Carter, Principal Analyst at Gartner. “Upskilling current teams is just as important as hiring new talent.”
Despite significant investment in AI, 66% of CEOs say their current business models are not prepared for integration at scale. This suggests that true transformation will require more than technology — it demands a new level of AI literacy across the leadership bench.
Gartner warns that without immediate improvement in AI competence, organizations risk falling behind. As AI becomes foundational to innovation and competitive advantage, pressure is mounting on executive leaders to catch up fast.
“This isn’t about tech adoption anymore,” said Carter. “It’s about the survival and relevance of leadership in an AI-driven economy.”