Key Points:
- African CEOs recognize the broad benefits of advanced technologies, with half (50%) of the respondents identifying generative AI, deep learning, and machine learning as critical to success.
- Over half (53%) of African CEOS cite technology as the most impactful external factor on their enterprise, with market factors (51%) and regulatory factors (49%) emerging as second and third, respectively.
A new global study by the IBM (NYSE: IBM) Institute for Business Value found that over half (54%) of African CEOs surveyed identify customer experience as their highest business priority.
They also recognize productivity or profitability as key to achieving their business goals, ranking it their second highest priority (46%). However, they continue to face key barriers as they race to modernize and adopt new technologies like generative AI.
The annual CEO study, CEO decision-making in the age of AI, Act with intention, found that African CEOs expect to realize significant value from advanced forms of AI and analytics such as cloud computing, automation, generative AI, deep learning, machine learning, advanced analytics, and more. However, African organizations face influential external factors hindering their AI readiness over the next three years.
Over half (53%) of African CEOs identify technology factors as the most impactful force that could significantly impact their respective AI adoption journeys. Additionally, regional CEOs cite market factors (51%), regulatory factors (49%) and workforce and skills (33%) as leading external factors that are having the most significant impact on their organizations.
More than half (57%) of global CEOs surveyed cite concerns concerned about data security, and 48% worry about bias or data accuracy, barriers they indicate could slow their adoption of generative AI. African CEOs face several data challenges, with nearly half of the respondents citing unclear data calculation and reporting across suppliers and partners (48%) and within their organizations (47%) as the most critical risks or barriers.
“The Fourth Industrial Revolution has presented Africa with an opportunity to leapfrog various stages of economic development. Consequently, African organizations are leveraging generative AI and emerging innovation models to accelerate innovation, enhance customer experiences, productivity and profitability, and environmental sustainability, to name a few,”
said Julia Carvalho, General Manager of IBM Africa Growth Markets.
“However, it’s critical that CEOs in Africa establish and implement clear and consistent standards as it concerns the utilization of AI across all areas of strategic focus, as it will determine the level of investment and, ultimately, an organization’s success in a rapidly advancing digital economy.”
Key study findings include:
CEOs in Africa say customer experience and productivity, or profitability, are pressing priorities
- Over half (54%) of CEOs surveyed pinpoint customer experience as a top priority for their organization, whilst productivity or profitability follows as their second highest (46%).
- Additionally, CEOs surveyed say technology factors remain the top external force impacting their organization over the next three years.
CEOs in Africa are increasingly looking toward operational, technology and data leaders as strategic decision-makers.
Additional data gathered during the survey indicates the following:
- When asked which C-Suite members will make the most crucial decisions over the next three years, CEO respondents identify COOs (63%) and CFOs (54%).
- The influence of technology leaders on decision-making is growing – 41% of surveyed CEOs point to CIOs, followed by Chief Technology or Chief Digital Officers (39%), as making the most crucial decision-makers in their organization.
CEOs in Africa expect to realize significant value from advanced forms of AI and analytics. However, the absence of consistent standards in strategic focus areas is affecting investment
- Half (50%) of African CEOs report generative AI, deep learning, and machine learning will deliver the results they need over the next three years; 58% say they expect cloud computing to deliver the most results, while 51% bank on automation.
- However, around 6 in 10 (60%) of CEOs in Africa report a lack of clear standards in one or more strategic focus areas and are delaying investments as a result.
CEOs in Africa say sustainability is their top challenge amid their respective AI journeys, and they also face a balancing act when it comes to engaging in challenging public issues
- 39% of CEOs identify environmental sustainability as their greatest challenge over the next three years, followed by cybersecurity and talent recruiting/retention, with 28% each.
- However, CEOs are wary about taking a public stand on social, geopolitical and ESG issues impacting customers and employees. While 73% of CEOs believe they should take a stand, 39% say they regret a public stand they have taken in the past three years.
To view the full study, visit here.
To learn more about the top trends and strategic bets business leaders are making to boost productivity, visit here.
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