Essential conversations executive teams need to have now
In the era of gen AI, the most critical conversations might be the ones that aren't happening—and that's a risk business leaders can't afford to take.
Today’s business leaders face a daunting challenge—harnessing the power of gen AI to drive growth and innovation while mitigating its risks. To succeed, executives must navigate complex technological landscapes and make smarter decisions that balance short-term and long-term goals.
And now more than ever, they’ll need to work together.
The 2024 global C-suite study series
Every year, researchers from the IBM Institute for Business Value conduct dozens of research studies to identify the challenges and opportunities currently facing enterprise executives.
Over the course of this year, we surveyed more than 50,000 global leaders on topics ranging from the impact of gen AI on business models and talent development to the role of finance and technology for driving innovation and growth. The data from these surveys and interviews is synthesized into robust, reliable thought leadership reports that help leaders make smarter business decisions.
Our 2024 C-suite series pinpoints key topics that CEOs ought to be discussing with their finance and tech leaders now as gen AI transforms industries and creates new opportunities for growth.
When CEOs and CFOs meet over coffee, what should they talk about?
CEOs and their CFOs must work together to determine their organization's risk tolerance and allocate finite budgets to drive growth and profitability in a gen AI-driven market. These two leaders need to prioritize investments in areas that can create the most value with gen AI, both in the short-term and long-term.
This includes investing in talent development and upskilling their workforce to ensure they have the right capabilities to take advantage of gen AI. For example, they may need to ignite a talent revolution by analyzing workforce data to identify skills gaps, and determining whether to “buy, build, borrow, or bot” to fill those gaps.
The conversation should also focus on how to make data the oxygen for their AI, and how to unlock AI potential with a unified data ecosystem. This involves discussing how to simplify data access, integration, and evaluation, and how to create a strong foundation for AI adoption.
Ultimately, the goal of these conversations is to drive business success in a rapidly changing world. By working together, CEOs and CFOs can create and fund a strategic plan that allocates resources effectively to drive growth and profitability. This will require a proactive, agile, and data-driven approach, but the payoff will be worth it.
| As one CFO noted, “You have to be able to understand the levers of your business and how each and every decision impacts your business—and then which potential levers you would have to pull with what amount and quantity or volume in order to compensate for that.” |
CEOs and tech execs should collaborate to reveal organizational blind spots
As the gen AI era takes hold, CEOs and their tech leaders must have an urgent conversation about the strategic implications of this technology. With 72% of CEOs saying competitive advantage depends on who has the most advanced gen AI, the stakes are high, and the insight tech leaders have is crucial input.
In many cases, tech leaders are being left out of critical leadership conversations. Their absence or ineffective participation has resulted in organizational blind spots in areas such as data, infrastructure, talent, and innovation.
As CEOs and tech leaders plan, key topics should include how to:
- Position technology as essential to business outcomes and drive a culture of innovation.
- Develop a hybrid-by-design infrastructure that delivers the flexibility, security, and scalability necessary for growth.
- Prioritize a people-centric approach to technology operations that empowers their workforce.
- Develop a responsible AI framework that cultivates a culture of integrity and transparency.
During these conversations, tech leaders must position themselves as bold visionaries who can give life to a winning strategy by sharing their expertise. On the other side, CEOs must be willing to listen and adapt to the changing landscape driven by generative AI.
Together, CFOs and their tech exec colleagues can make 2+2 equal far more than 4
CFOs who recognize technology's transformative power are more likely to seize first-mover advantages and define markets. As gen AI continues to disrupt traditional business models, CFOs and tech execs must have an urgent conversation about the strategic implications of this technology.
Many CFOs are not fully leveraging technology to drive business outcomes. While 62% of CFOs say their organizations are under pressure to accelerate ROI across their technology portfolio, only 35% of finance organizations engage in early IT planning with tech leaders to set expectations on how technology advances enterprise strategy. This is a missed opportunity.
To drive business success in a rapidly changing world, CFOs and tech leaders must work together to champion tech as core to the business. This requires that CFOs shift from being financial overseers to strategic allies, where they work with their tech colleagues to drive transformation and support enterprise strategy with aligned technology initiatives.
These leaders must support modernized finance IT and updated financial systems with cloud-based ERP to consolidate standalone legacy applications and standardize and integrate existing and new applications.
As they discuss how to make execution the yin to strategy's yang, CFOs and tech leaders must prioritize investments that drive growth and profitability, determining their risk tolerance and placing big bets on technology investments that drive growth and profitability.
Discover what C-suite leaders need to know—and do—to succeed in the age of gen AI
The future is on the line. Leaders’ abilities to insert their essential expertise into enterprise decisions will ultimately determine their organizations' success in the AI era.
But with the right strategy, leadership, and vision, organizations can thrive in this new era of technological disruption.
Read our reports to gain a deeper understanding of the role each C-suite leader plays in this era of rapid technological change. Our research and insights will empower you to make informed decisions, drive transformative growth, and position your organization for long-term success.
- 2024 CEO Study: 6 hard truths CEOs must face
- 2024 CFO Study: 6 power moves CFOs must make
- 2024 Tech Leaders Study: 6 blind spots tech leaders must reveal
Also, subscribe now to receive complimentary reports from the IBM Institute for Business Value that will help you drive business growth, innovation, and success.
