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CIOs Struggle to Define AI Value For Their Business as They Continue to Invest in New Projects
Monday, November 18, 2024
Tech leaders are divided on whether AI investments should boost productivity, revenue, or worker satisfaction
SAN FRANCISCO, Nov. 14, 2024 /PRNewswire/ -- New research from revenue intelligence leader Gong reveals widely varying viewpoints among CIOs and other tech leaders over how to evaluate the success of AI projects. Surveying over 500 CIOs and heads of IT across the UK and US, the findings illustrate the challenge many businesses face when it comes to strategically implementing AI and the uncertainty in measuring whether those AI investments are paying off.
While over half of CIOs (53 percent) prioritize productivity gains, an equal proportion focus on revenue growth as their key success metrics, with worker satisfaction trailing closely behind (46 percent). This divergence underscores a broader challenge: confusion about where AI can deliver the most business value and a well-defined approach for evaluation.
Key insights from the study include:
-- Revenue Growth vs. Time Savings: 61 percent of global CIOs believe
increased revenue alone justifies AI costs, while 60 percent say that
time savings alone will justify costs. Yet, only 32 percent actively
measure both, suggesting that many companies still don't have systems in
place to measure and assess the impact on the variables they say matter
most.
-- A Growing Interest in Predictive AI: While generative AI attracts much
of the buzz around the technology, it is not the clear leader among CIOs
in terms of driving value. Fifty-four percent of tech leaders prioritize
generative AI, 51 percent prioritize automation, and 31 percent
prioritize predictive AI. To capitalize on this discord and deliver
value across a broad spectrum, AI models must be tuned to support
workflow automation and predictive analytics.
-- Adoption of Domain-Specific Solutions: While nearly three-quarters of
tech leaders rely on off-the-shelf large language models (LLMs) as part
of their AI investments, 58 percent are utilizing domain-specific
solutions. These AI tools are trained on industry- and function-specific
data to deliver more precise and measurable results.
-- Security is a Key Obstacle...: Security remains a top priority for 68
percent of tech leaders, but 28 percent admit this is where their AI
projects most often fall short.
-- ...As is Data Integration: Data integration challenges also threaten
project success, with 36 percent of CIOs likely to pause initiatives if
implementation complexities arise. Without the right underlying data, AI
outputs risk delivering little value or, worse, biased or inaccurate
results.
-- AI's Long-Term Value Persists: Despite mixed measurement strategies,
only a small fraction (under 20 percent) cited a lack of provable ROI as
a reason to abandon AI initiatives, indicating that most companies
continue to explore its potential and long-term value.
-- Smaller companies are more eager to prove ROI: Smaller US firms (250-500
employees) are more ROI-focused, with 40 percent willing to halt
projects lacking clear ROI, compared to just 19 percent of larger
companies. This suggests that while smaller US firms see the value in
investing in AI, they need to focus on initiatives that deliver
measurable and immediate returns and have less budget for
experimentation. In contrast, larger companies might have more capacity
to invest in long-term projects without immediate ROI.
"Over the last two years, the AI hype and pace of innovation has created incredible excitement and confusion for CIOs and tech leaders about its potential and where to focus," said Eilon Reshef, co-founder and Chief Product Officer, Gong. "But one thing is clear: leaders are pursuing value and exploring different areas across the business where AI can have a transformative impact."
To learn more about the survey's findings, read the blog.
Methodology
The research was conducted by Censuswide with 573 CIOs/Heads of IT (aged 25+) in medium and large companies who have purchased an off-the-shelf AI application in the last 2 years across the UK and US (250 and 323 respondents respectively) between October 9 -October 16, 2024. Censuswide abide by and employ members of the Market Research Society which is based on the ESOMAR principles. Censuswide are also members of the British Polling Council.
About Gong
Gong transforms revenue organizations by driving business efficiency, revenue growth, and improved decision-making. The Revenue Intelligence Platform uses proprietary artificial intelligence technology to enable teams to capture, understand, and act on all customer interactions in a single, integrated platform. Thousands of companies around the world rely on Gong to support their go-to-market strategies and grow revenue efficiently. For more information, visit www.gong.io.
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SOURCE Gong
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