IBM: CEOS, ‘make your people your most important tech investment’

In this era of generative AI, “sometimes playing it safe is the greatest risk of all” – that’s according to IBM’s 2024 CEO Study.

The consulting giant surveyed 3,000 global CEOs and found that, unsurprisingly, top of mind from them in 2024 was generative AI.

59% of CEOs – and 72% of the top performing CEOs – agree that competitive advantage depends on who has the most advanced generative AI.

Plus two in three CEOs said that the potential productivity gains from automation are so great that organizations must accept significant risk if they want to remain competitive.

It’s time to let go of just doing things the way they’ve always been done – yes, 62% are aware they need to rewrite the business playbook to win in the future, but 59% are not willing to sacrifice operational efficiency now to drive greater innovation in the future.

It’s crucial that while organizations recognize the enormous productivity benefits from AI – the Hackett Group’s data shows that generative AI could drive a 50% productivity boost by 2030 – if they only focus on efficiency, then they will miss out on the largest benefit: top line growth.

In jumping in on generative AI, CEOs need to face up to six hard truths, according to IBM – two of these are highly relevant for CHROs and HR departments as a whole.

Let’s explore them in more detail.

The HR AI problems CEOs need to solve to thrive

The two people problems that IBM sees CEOs are facing are interconnected. The first is that teams are not as AI-ready as organizations might think – in reality people are CEOs biggest tech problems – and the second is people hate progress, and they still need to be convinced that generative AI is actually good for them (and their careers).

“Two in three CEOs say succeeding with AI will depend more on people’s adoption than the technology itself. This echoes what I’m hearing from global HR leaders: talent, skills and culture are key to getting value from AI at scale,” Jill Goldstein, Global Managing Partner for HR & Talent Transformation at IBM, exclusively tells UNLEASH.

“The biggest hurdle is not choosing the right technology, but rather getting employees comfortable with new work processes and embracing change”, continues Goldstein.

So, what’s the solution?

“Right now, many employees see transformative technologies like generative AI as something that’s happening to them, not as a tool that works for them,” explains Goldstein.

CEOs, and the HR function led by the CHRO, need to step up here, and really show their commitment to their talent by investing in upskilling and training.

The good news is that CEOs are on board, with 35% seeing reskilling as necessary in the next three years, up from 6% in 2021.

In fact, IBM’s report found that the top-performing CEOs (the top 10%) are getting this right; they’re 43% better at talent development and retention, as well as doing 17% more innovation.

“CHROs need to reset that by championing training and reskilling initiatives that increase the overall technical acumen of the workforce,” adds Goldstein.

“This can unlock incredible bottoms up innovation at the same time, as employees explore AI themselves, find new applications for the technology and start to design the future of their own roles and careers.”

IBM’s report also suggests that CEOs, and therefore CHROs, do their best to prioritize people when investing in tech – choose the most inefficient and frustrating processes for your people, and use generative AI to transform them for the better.

It’s time to “make your people your most important tech investment”, stated the report.

“By prioritizing a culture of growth and innovation, building employee trust, and redefining roles to promote employee growth and wellbeing, CHROs can help their organizations unlock their full potential in the age of generative AI,” concludes Goldstein.