Julian Hayes II
Contributor
FORBES
Aug 20, 2024,
CEOs are fully onboard with AI and its potential.getty
The age of artificial intelligence (AI) is rapidly expanding, becoming increasingly integral to the everyday operations of businesses at all levels. From improving the workplace wellness experience to automating rudimentary tasks, AI's influence and impacts are being felt. That said, historically, when disruptive trends and forces such as AI have emerged, mass adoption has been slow due to the risk-averse nature of many business leaders.
However, AI is proving to be an exception, as CEOs have overwhelmingly embraced AI's potential. One notable example is the widespread adoption of ChatGPT, one of the most popular generative AI tools. In the first half of 2023, 75% of CEOs reported using ChatGPT, with 44% incorporating it into their daily work. This rapid adoption is comparable only to the early enthusiasm for the iPad, which saw a 40% usage rate among CEOs within its first six months.
This trend is further supported by the annual Gartner CEO and Senior Business Executive Survey, which revealed that 87% of CEOs believe the benefits of AI outweigh its risks. This sentiment and outlook are strongly echoed in a separate Accenture report, where 84% of executives stated that they don't think they can achieve their growth objectives without scaling AI, and 75% fear going out of business within five years if they fail to do so. While enthusiasm for AI is high, the specific strategies for leveraging it to drive revenue growth remain murky. However, CEOs highlighted numerous potential areas in the survey, with these two areas standing out as key opportunities for most organizations
Improved Customer Experience
For CEOs, making optimal decisions that drive the business forward hinges on delivering an exceptional and consistent customer experience. In today's fast-paced world, where technology is continually more embedded in our daily lives, a company's reputation can spread rapidly—good or bad. A brand's reputation is only as strong as the experience it delivers to its customers. Therefore, it's no surprise that improving customer experience tops the list of potential benefits of AI. According to Deloitte:
62% of customers spend more after a good customer experience.
Experience-driven businesses grow revenue 1.4 times faster and increase customer lifetime value 1.6 times more than other companies.
Improving the customer journey can lower operational costs by up to 20%.
After a positive experience, 83% of customers would happily provide a referral if asked.
When leveraging AI to elevate the customer experience, it's crucial to consider tools supporting the organization's people. Employees often serve as the first point of contact, as companies such as Starbucks and Best Buy are learning, and their well-being directly impacts the quality of those customer interactions.
Better Productivity Through Improved Analysis
According to Goldman Sachs, AI has the potential to raise the global GDP by 7% (nearly $7 trillion) and productivity growth by 1.5 percentage points over the next decade. There are numerous ways that AI can potentially grow revenue. AI can reduce burnout and overwhelm for team members by taking over routine, repetitive tasks, thus allowing team members to focus on more fulfilling aspects of their jobs.
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This subtle shift can benefit job satisfaction and, by extension, improve mental and emotional well-being. For CEOs, AI's ability to handle and analyze large volumes of data can significantly reduce CEO's workload and stress, thus freeing them to focus on more strategic (and rewarding) tasks. Predictive analytics, in particular, allows CEOs to make data-driven decisions, spot past mistakes, identify important trends, and forecast the future with greater precision.
In business, there's a never-ending pursuit of growth, efficiency, and a way to create industry separation. CEOs are excited about AI's potential, as the varying possibilities it presents could fundamentally transform how businesses operate, from innovation and productivity to the customer experience.
CEOs are fully onboard with AI and its potential.getty
The age of artificial intelligence (AI) is rapidly expanding, becoming increasingly integral to the everyday operations of businesses at all levels. From improving the workplace wellness experience to automating rudimentary tasks, AI's influence and impacts are being felt. That said, historically, when disruptive trends and forces such as AI have emerged, mass adoption has been slow due to the risk-averse nature of many business leaders.
However, AI is proving to be an exception, as CEOs have overwhelmingly embraced AI's potential. One notable example is the widespread adoption of ChatGPT, one of the most popular generative AI tools. In the first half of 2023, 75% of CEOs reported using ChatGPT, with 44% incorporating it into their daily work. This rapid adoption is comparable only to the early enthusiasm for the iPad, which saw a 40% usage rate among CEOs within its first six months.
This trend is further supported by the annual Gartner CEO and Senior Business Executive Survey, which revealed that 87% of CEOs believe the benefits of AI outweigh its risks. This sentiment and outlook are strongly echoed in a separate Accenture report, where 84% of executives stated that they don't think they can achieve their growth objectives without scaling AI, and 75% fear going out of business within five years if they fail to do so. While enthusiasm for AI is high, the specific strategies for leveraging it to drive revenue growth remain murky. However, CEOs highlighted numerous potential areas in the survey, with these two areas standing out as key opportunities for most organizations
Improved Customer Experience
For CEOs, making optimal decisions that drive the business forward hinges on delivering an exceptional and consistent customer experience. In today's fast-paced world, where technology is continually more embedded in our daily lives, a company's reputation can spread rapidly—good or bad. A brand's reputation is only as strong as the experience it delivers to its customers. Therefore, it's no surprise that improving customer experience tops the list of potential benefits of AI. According to Deloitte:
62% of customers spend more after a good customer experience.
Experience-driven businesses grow revenue 1.4 times faster and increase customer lifetime value 1.6 times more than other companies.
Improving the customer journey can lower operational costs by up to 20%.
After a positive experience, 83% of customers would happily provide a referral if asked.
When leveraging AI to elevate the customer experience, it's crucial to consider tools supporting the organization's people. Employees often serve as the first point of contact, as companies such as Starbucks and Best Buy are learning, and their well-being directly impacts the quality of those customer interactions.
Better Productivity Through Improved Analysis
According to Goldman Sachs, AI has the potential to raise the global GDP by 7% (nearly $7 trillion) and productivity growth by 1.5 percentage points over the next decade. There are numerous ways that AI can potentially grow revenue. AI can reduce burnout and overwhelm for team members by taking over routine, repetitive tasks, thus allowing team members to focus on more fulfilling aspects of their jobs.
The video player is currently playing an ad. You can skip the ad in 5 sec with a mouse or keyboard
This subtle shift can benefit job satisfaction and, by extension, improve mental and emotional well-being. For CEOs, AI's ability to handle and analyze large volumes of data can significantly reduce CEO's workload and stress, thus freeing them to focus on more strategic (and rewarding) tasks. Predictive analytics, in particular, allows CEOs to make data-driven decisions, spot past mistakes, identify important trends, and forecast the future with greater precision.
In business, there's a never-ending pursuit of growth, efficiency, and a way to create industry separation. CEOs are excited about AI's potential, as the varying possibilities it presents could fundamentally transform how businesses operate, from innovation and productivity to the customer experience.
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Julian Hayes II writes about the intersection of wellness, business, and leadership. His articles have been published in Inc., Entrepreneur, SUCCESS
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