CEOs embrace AI, but knowledge gaps threaten strategic decisions

In a rapidly evolving technological landscape, a new study from Cisco reveals a paradox among global CEOs. While an overwhelming majority (97%) of CEOs plan to integrate AI into their operations, only 1.7% feel fully prepared to do so. The study highlights critical knowledge gaps that threaten to hinder strategic decisions and growth.

The research found that four out of five CEOs recognise the potential benefits of AI. However, there is widespread concern that gaps in understanding could negatively impact strategic decisions, risking missed opportunities and falling behind competitors. Over 70% of CEOs fear losing ground due to gaps in IT knowledge or network infrastructure, with more than half already experiencing competitive losses from underinvestment in technology.

Cisco’s research shows that more than 70% of CEOs are worried about losing ground to competitors due to IT and infrastructure gaps. These fears are already translating into real losses, with over half of CEOs (53%) expressing concern that a lack of investment in technology is costing them competitive advantage.

Additionally, two-thirds are worried about the opportunity costs of not investing more in technology. If action is not taken, CEOs expect higher operating costs, lower profits, reduced productivity, and declining market share.

In response to these concerns, CEOs are not standing still. With support from IT leaders and trusted partners, they plan to empower their people, modernise infrastructure, and strengthen cybersecurity to sharpen their competitive edge in an AI-driven future.

Cisco’s Chief Product Officer, Jeetu Patel, emphasises the urgency to act: “In a dynamic landscape where competition is fierce, speed decides the winners.

“Leaders who act decisively today to build resilient, future-proofed networks will be the AI-forward leaders driving real value for their business.”

CEOs are turning to AI for its transformative potential, aiming to drive efficiency (69%), spur innovation (68%), and outpace competitors (54%). However, fulfilling this ambition requires CEOs to overcome barriers such as skills shortages, infrastructure gaps, and security risks.

Oliver Tuszik, President of Cisco EMEA, highlights the opportunity: “Whole businesses will be revolutionised if they can unlock AI’s potential to innovate faster, simplify their operations, and withstand digital disruptions.”

To turn fear into progress, Cisco’s research reveals that CEOs plan to invest in knowledge and skills, upgrade infrastructure, and enhance security to prepare for the demands of AI. Nearly 80% of CEOs recognise the vital role of their CTOs and CIOs in guiding business and investment decisions. Additionally, 96% of CEOs are turning to trusted partnerships to future-proof their network for AI.

Cisco’s study underscores the importance of decisive technology leadership and the need for CEOs to act swiftly to capitalise on AI’s potential. By investing in their people, modernising infrastructure, and strengthening cybersecurity, CEOs can navigate uncertainties and translate AI’s potential into tangible outcomes.