In recent years, digital transformation has become an indispensable priority for the C-suite, with many CTOs recognizing that digitalization is an ever-evolving concept; unlike earlier phases that focused on process automation, a majority of CTOs now see “catalyzing business growth” as a top benefit. However, according to a major study published today by global digital engineering company and Smart Industry leader, Akkodis, CTOs report numerous challenges and acknowledge that there is still much progress to be made. There are still many uncertainties surrounding the introduction of AI technologies and there is also a discrepancy between the CTOs’ concepts and the corporate reality.
“What CTOs Think: Navigating the Path to the AI Enterprise” is a report that explores how CTOs are approaching this current era of digitalization and offers recommendations for a successful transformation to an AI-powered enterprise. The survey[1], conducted in collaboration with Oxford Economics, covers 2,000 C-suite leaders, including 509 CTOs, across nine countries and 18 sectors, including Aerospace, Automotive, Energy, Life Sciences, and Technology.
Uncertainty and inaction hold back digital transformation
Despite a clear imperative for CTOs to digitally transform their organizations, uncertainty paralysis poses a barrier to action. External challenges rank high, including regulation and compliance, as well as security risk concerns. Yet, with new tech rapidly evolving, the number one barrier CTOs cite across industries is selecting the right technology. AI stands out as a defining feature of this emerging new digitalization era. Although most CTOs see it as a game changer for their companies, the technology remains nascent and 60% of CTOs believe their organization’s leadership lacks sufficient AI skills and knowledge. Skills gaps within the C-suite may trickle down to impact readiness across the wider workforce.
CTOs need to collaborate to deliver the AI enterprise
There is a gap between CTOs’ ambition and implementation when it comes to their AI strategies, worsened by broader uncertainties. While 80% of CTOs are “very confident” in their AI plans compared to 67% from the rest of the C-suite, there’s still work to be done. Only about half of CTOs say their organizations offer AI usage guidance, provide a framework for ethical data use, and offer AI training (56%, 51% and 46%, respectively). To address the disruption new technologies bring across business models, CTOs must foster cross-departmental collaboration to secure enterprise-wide buy-in.
There is an urgent need for digital workforce strategies
CTOs identify critical digital skill gaps that are expected to widen as this new wave of digital transformation accelerates. They expect this will likely to drive up wages for technical staff, with strong demand for digital skills anticipated over the next five years. CTOs are bold on upskilling and reskilling existing employees and expect generative AI to positively impact workforce strategies across the organization in the coming year. To address these gaps, there’s a need to balance building, buying, and renting talent, with a focus on upskilling and reskilling existing employees.
“This research highlights the challenges and opportunities business leaders face with the new wave of digitalization and emerging technologies,” said Jan Gupta, President, Akkodis. “The Smart Industry is all about leveraging digitalization to help us connect everything, use data to inform sharper decisions, and create new business models and smarter systems. The CTO plays a crucial role in bringing this to fruition. Their collaboration across the C-suite is critical to navigating talent gaps, building AI-ready foundations, and ultimately transforming the enterprise.”
