As CIOs move their companies into an AI future, they face a familiar set of challenges

Times change, technologies change, and AI is just the latest thing. While CIOs clearly understand that to lead their companies into the future, it’s going to require them to focus firmly on AI, they have the same concerns around security, compliance and governance they have always had with any new technology – not to mention trying to get a measurable return on their investment.

On top of all that, most CIOs don’t have a ton of experience with AI, yet face lofty expectations about the technology from every corner of the company.

At a press event in October, Salesforce CIO Juan Perez said that as a CIO, he shares those concerns, and has been hearing similar worries from every quarter. “I had an opportunity to participate in panels and discussions [recently] with multiple CIOs, and it was really clear to me how CIOs and other tech executives from all kinds of organizations are being challenged as to how they can move quicker with AI, but also responsibly with AI,” Perez said. 

Perez says CIOs have always played a critical role in the enterprise, but the explosion of AI has really put them front and center. “CIOs are in the hot seat like never before,” he says. While CIOs have always been responsible for keeping the company technology running, while using tech to help drive the company’s business strategy, AI brings a different set of challenges. “We always have had a huge responsibility in driving innovation in our companies – but AI has elevated all of that.”

In fact, the vast majority of CIOs see the potential of AI to transform their businesses with 84% in a recent Salesforce survey of 150 CIOs working for companies with at least 1000 employees, saying it’s going to be as big as the internet in terms of its impact on companies. 

That’s in line with Morgan Stanley’s October 2024 quarterly survey of European company CIOs with 78% saying that AI/LLMs will have a direct impact on IT investment priorities in Q32024, an uptick from 73% in the first quarter and 75% in the second.  

What’s more, while 29% of respondents to Morgan Stanley’s survey said that they expect to have an AI/LLM project in production by Q12025, the reality is that many would prefer to move more slowly. Consider that 67% of respondents to Salesforce’s survey report that they  are being more cautious as they implement AI than other technologies. What’s more, to this point just 11% reported having fully implemented AI projects with the primary issues holding them back being data readiness and security concerns.

That thinking matches what Angelica Tritzo, CIO at GE Vernova, the energy spinout from GE told me. She is moving very deliberately with GenAI projects to ensure they deliver value before full-scale implementation. While she has a couple of projects transitioning out of the proof-of-concept phase, she expects to see significant progress in the next six months as they develop more concrete metrics to measure ROI.

“We have set a very rigorous process around metrics and indicators to measure improvement, and we know that, at least for us, there are no areas where Gen AI could fully replace people, but it could help us increase quality, reduce mistakes and help us standardize [processes] much more,” she said.

AI isn’t a flash in the pan

Perez says that unlike some hyped technologies over the last couple of years such as blockchain and AR/VR, there is more substance to AI, and it probably isn’t going anywhere. Therefore, it’s up to CIOs to find ways to make it work to increase their company’s competitiveness and build more efficient processes.

“In my tenure as a CIO, I have seen technologies that were publicized as business changing, and eventually over time they either were just not that impactful, they dissipated into just the normal course of business, or they really didn't live up to the expectations when it came to value creation,” he said.

To add another layer of complexity, CIOs are also dealing with executives who may not always be terribly realistic about AI’s capabilities. “I believe today, CIOs are genuinely excited about AI, but at the same time they're feeling the pressure to deliver much more quickly. The pressure is coming in some ways because of the lack of education as to what GenAI can actually do and how it can support a business.”

Consider that in its survey, Salesforce found 68% of the CIO respondents believed their users had unrealistic expectations when it came to AI timelines. That’s a big problem, and it’s one that’s going to take education, both on the part of the CIOs themselves, as well as the organization as a whole. That can come in the form of education days where people can learn how GenAI can help support a given role in a business. For CIOs, they may speed up the learning curve via conversations with other CIOs, analyst reports and attending conferences to find ways to understand what’s possible.

Regardless, AI projects are no different from any other tech projects in that they have to have a clear business benefit. “Most CIOs today are now recognizing that we need to treat AI like we've treated other technologies, and make sure they make the proper investments in data, the appropriate investments in infrastructure and security, and that we manage AI responsibly,” Perez said.

These issues could continue to hold companies back moving forward, and CIOs are going to have to walk a fine line between balancing caution with innovation, all while trying to help push their organizations into the future – and it’s not going to be easy.

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