A new study from Emergn, the global leader transforming the way companies and individuals work forever, reveals a cautionary warning to business leaders betting big on AI to drive revenue growth. While AI initiatives may appear intelligent, strategic, and inevitable, leaders fear that they will ultimately fail if human capabilities and organizational preparedness are overestimated.
According to the survey, 75 percent of US business leaders intend to generate revenue from new AI solutions within the next year, yet 60 percent say that AI expectations are growing faster than their ability to meet them.
“Many companies view AI as a catalyst for revenue and growth, yet the real challenge lies not in adopting advanced technologies, but in bridging the gaps of talent, skills, and organizational capability,” said Alex Adamopoulos, Chairman and CEO of Emergn. “The intelligent delusion is the belief that adopting advanced technologies is itself a sign of advancement. In reality, without an AI-First mindset that considers organizational role readiness, training, and capability building, it’s a sophisticated form of self-deception. The smarter the technology, the easier it becomes for intelligent leaders to overestimate its promise and underestimate the human condition required for success.”
The Growing Disconnect Between AI Ambitions and Capabilities
Optimism around future AI projects is expected, considering that 82 percent of US organizations reported a positive return on investment from AI initiatives within the past year. These impressive returns may be leading more than three-quarters of business leaders to forecast future financial gains in the next 12 months.
Nevertheless, many organizations are expected to face significant challenges in keeping pace with rapidly evolving expectations. A majority (61 percent) of US leaders recognize that their AI aspirations are surpassing their current capabilities. The human component cannot be overlooked; nearly 55 percent of US business leaders report that they will be unable to achieve their AI objectives without talent in problem framing, outcome-focused design, and market integration.
This increasing pressure underscores the need for organizations to hire or develop the necessary human expertise in strategic oversight and technological direction, which is crucial for those striving to leverage the potential of AI fully.
Product Management’s Ascension to Prominence
Business leaders are increasingly recognizing that strong product management is essential for bridging the gap between ambition and execution.
In the last 12 months, 85 percent of US business leaders reported increased investment in product management, including expanded roles, tools, and processes. This strategic shift is echoed by 66 percent of leaders who believe product management will be critical to their company’s strategy in the coming year, driving innovation, informed decision-making, and sustainable long-term growth, up from around 27 percent who felt the same the year before.
This remarkable jump highlights a growing consensus: effective product management is now viewed as an engine for both operational excellence and competitive advantage.
The Rising Tide of the Chief Product Officer
Reflecting this shift, product management is rapidly advancing to C-level prominence. In the past 12 months, 41 percent of US organizations have appointed a CPO, a notable increase from the previous year when only 31 percent had done so.
The trend signals a deliberate move by organizations to anchor their leadership teams in expertise that not only understands a product-led discipline but can also orchestrate the integration of emerging technologies, particularly AI, across the enterprise. As companies seek to realize the financial and operational gains promised by AI, the CPO’s role becomes even more pivotal.
This shift reinforces a central narrative: closing the gap between AI’s promise and its practical, revenue-generating application requires both visionary leadership and the robust discipline of product management at the highest levels of the organization.
About the Study
Emergn’s 2025 Intelligent Delusion Study was conducted by Censuswide with a sample of 751 global organizations. Individuals surveyed included CEOs, CTOs, COOs, and others involved in operational change who have been employed for at least five years at companies with 1,000 or more employees and $500 million or more in revenue.
To download the full Global Intelligent Delusion research study, click here.
Emergn improves the way people and companies work. Forever. Emergn works with the world’s most respected businesses – including Fortune 500, FTSE 100, and Global 2000 companies – to help them make the shift from project to product-centered organizations in how they shape, build, and deliver their products and services, including capability development of their teams using a proven philosophy called Value, Flow, Quality (VFQ).
VFQ underpins Praxis – Emergn’s AI-driven product platform, which provides product leaders and their teams with the expert guidance and tools they need to build products that succeed in the market. Combining AI-powered guidance, tools that help you build strategy and understand customers, and Emergn’s proven knowledge base, Praxis lets you focus on the deep product work that creates products customers love and competitors can’t match.
Emergn has its US headquarters in Boston, and its EMEA headquarters is in London.
For more information, visit Emergn’s website and follow Emergn on LinkedIn.