A recent IBM study revealed that only a quarter of AI initiatives have achieved their expected return on investment (ROI) so far, and 16% have successfully scaled AI across the enterprise — despite rapid investment and growing pressure to compete.
Still, most CEOs remain committed to AI, viewing it as critical to long-term success, with a large fraction looking forward to positive returns by 2027. IBM Vice Chairman Gary Cohn said that “leaders who fail to use AI and their own data are effectively choosing not to compete.”
CEOs continue to invest in AI despite modest returns
The 2025 IBM CEO Study, which surveyed 2,000 CEOs across 24 industries and 33 countries, found that most leaders are pressing ahead with AI investments even as only a minority of projects achieve expected returns.
CEOs are undeterred by short-term setbacks and continue to prioritize AI as a key driver of future growth, with 85% expecting a positive ROI in scaled efficiency and cost savings and 77% predicting a positive result in scaled AI growth and expansion by 2027.
AI agents and generative AI adoption are accelerating
The IBM study also found that 61% of CEOs are actively adopting AI agents and preparing to implement them at scale, viewing AI as key to staying competitive.
This widespread adoption reflects IBM’s recent announcement that the “era of AI experimentation is over,” as companies move to small-scale trials to embedding AI agents in daily operations to improve forecasting, adaptability, and decision-making across the business.
What’s getting in the way of AI paying off
Fragmented tech and data environments
Many organizations still deal with disconnected business functions and siloed data, hindering AI impact. Leading CEOs address by integrating end-to-end workflows and building a unified data environment, which is imperative for unlocking AI’s full value across teams, based on a recent analysis.
Security and data privacy
Cybersecurity and data privacy remain among the top challenges as organizations expand AI use, sharing the concerns of cybersecurity professionals. The IBM survey shows enhanced security and data privacy is one of the top CEO priorities for 2025.
Difficulty in measuring ROI
Many leaders struggle to measure and link AI investments to clear business outcomes, a challenge also faced by other businesses across industries. However, some industry leaders believe measurable AI-driven ROI are within reach, particularly for companies that invested early and experimented with the right use cases.
The path to AI ROI
The IBM Study suggests that AI’s full payoff won’t come from cautious moves, but from leaders willing to take strategic risks and use their data to create advantage. As IBM points out, CEOs who hold don’t just miss out on efficiency gains — they may be choosing not to compete.
In the end, it’s the wise moves, not just the bold ones, that will define AI’s value.