Dive Brief:
- Although technology and AI are used broadly within enterprises, their influence on business strategy and success is viewed differently across the C-suite, according to a Gartner survey of 251 technical and non-technical executives at companies with more than $1 billion in revenue.
- Four-fifths of CEOs view technology as an enterprise's business strategy, and 82% of executives surveyed say CIOs should be responsible for guiding enterprise AI initiatives. But more than half of executives in non-tech roles said they view technology as informing the businesses strategy, but not shaping it.
- CIOs will need to remodel ownership and education of AI across departments to get enterprise workers on the same page, said Jennifer Carter, senior principal analyst at Gartner, during Gartner’s IT Symposium/Xpo last week. Tech chiefs are now fundamentally responsible for shaping business models through technology, she added.
Dive Insight:
Most executives agreed that the C-suite is working toward becoming an AI-powered enterprise. However, they disagree on how their organization will get there, Carter said.
Technology is seeping into more parts of enterprises than ever before. Nearly one-quarter of enterprise employees that report to functions outside of IT, such as marketing, accounting or sales, are technology workers. On average, nearly one-quarter of other departments’ operating budgets are dedicated to technology, and nearly one-third of their time is dedicated to personally managing tech, Carter said.
But accountability and ownership over technology look different than in years past — executive teams are less likely to say they will take collective ownership over the capabilities needed to achieve performance-related outcomes, including organizational changes, Carter said of the survey results.
“It's easy to say, 'I'll be in the hub for AI revenue generation,' but nobody's saying, 'Let me help with workforce management,'” Carter said.
Most executives surveyed said responsibility lies with the CIO. Even when it’s not clearly outlined in job descriptions, CIOs report feeling personal responsibility to manage the technology’s outcomes, a September report from 8x8 found.
Technical executives were less likely to agree that the C-suite is aligned on data strategy, and only 54% of non-technology executives said they have a strong partnership with their IT departments.
Some leadership strategies could vastly improve these conditions, Carter said. Communication and transparency, technology strategy alignment across departments, proactive communication about technology decisions and showcasing AI use cases can help create the necessary buy-in and alignment across the enterprise.
CIOs are in a better position with AI than they were a few years ago, Carter said — they no longer have to fight to prove that technology matters.
