CEOs cautious about AI but focused on growth in 2024: Gartner survey

Growth has emerged as the foremost business priority for 62% of CEOs in 2024, as per a new survey conducted by Gartner. This figure marks the highest level of prioritisation for growth since 2014, with a notable rise from the previous year's 49% of CEOs who deemed growth as their top priority.

"Along with the increased focus on growth, the survey showed a relatively weak position for cost management, suggesting that most CEOs and senior business executives believe the most challenging economic times are past," stated David Furlonger, Distinguished VP Analyst and Gartner Fellow. "We have entered a phase of rising business leader confidence and business strategy re-launches."

The 2024 Gartner CEO and Senior Business Executive Survey, conducted from July through December 2023, included 416 CEOs and other senior business executives. These participants represented a variety of industries, revenue brackets, and company sizes across North America, Europe, Asia/Pacific, Latin America, the Middle East and South Africa. The survey results indicated that CEOs are currently adopting a growth mindset in their business environments.

AI has been identified as a key focus area in business transformations, with 34% of CEOs marking it as the top theme following digital transformation. Operations efficiency followed at 9%. Comments from Don Scheibenreif, Distinguished VP Analyst at Gartner, highlighted the prominence of generative AI (GenAI) in displacing digital as the primary buzzword among CEOs. "The majority of CEOs surveyed believe that the AI breakthroughs of 2023 justified the tech sector hype. They are relying on CIOs, CTOs, or CDOs to unlock the value of GenAI, showing that this is a team effort when approaching these projects and not just a top-down experience," he said.

Despite the optimism surrounding AI, caution remains. A striking 87% of CEOs believe that the benefits of AI outweigh its risks to their businesses. Moreover, 90% agree that the notion of AI posing an existential threat to humanity is exaggerated. However, the potential challenges posed by AI are not overlooked, as 56% of CEOs acknowledge that disinformation, misinformation, and deepfakes could cause operational problems.

Additionally, 29% of CEOs expressed concerns over constrained electricity supply, while 53% cited general supply chain issues as potential problems driven by the demand for GenAI. Scheibenreif advises CEOs to retain a balanced approach to AI integration. "CEOs should tolerate low-cost GenAI projects," he stated. "But they should avoid the temptation to try and control GenAI's use from the centre. The excitement and energy will be almost impossible to handle. CEOs must let the hype cycle do its work for them."

He further cautioned that the trough of disillusionment for GenAI might arrive before the end of 2024. "CEOs should clamp down only on experiments that they believe are dangerous for the company’s reputation and allow the herd to police itself this time," Scheibenreif concluded.

The survey encapsulates a significant shift in CEO priorities, underlining a renewed focus on growth and the vast potential and challenges associated with AI as business environments evolve in 2024.