CEOs are prioritizing generative AI investments: KPMG

Dive Brief:

  • Despite uncertain economic conditions, investing in generative AI is on the minds of executives around the globe, according to KPMG data published Thursday.  
  • Nearly 3 in 4 CEOs say generative AI is a top spending priority, according to the survey of 1,300 CEOs at large companies globally, including 400 in the U.S. 
  • Executives expect the technology to bring increased profitability, new products, market growth opportunities, enhanced innovation and improved cybersecurity efforts, according to the report

Dive Insight:

Generative AI has captured the attention of top executives as they pursue the economic upside to the technology. While generative AI is expected to reach across departments, CIOs and other technology executives are helming the efforts.

“My goal is to help introduce the new technology, to provide more context around what it is and to provide education around the technology,” Justin Skelton, SVP and CIO at Dine Brands Global, said. 

The company which operates Applebee’s, IHOP and Fuzzy’s Taco Shop, is taking a prudent approach to generative AI adoption, thinking through how data is stored and retained as well as defining clear principles and values for acceptable use.

The strategy also calls for taking responsibility for the technology, according to Skelton. “That means building those partnerships with other members of the organization to make sure that, when we do implement it, we do it the right way with the right requisite controls on it,” Skelton said.

Successful implementation can prove challenging, but with the proper foundation, technology leaders can forge ahead. For organizations further along in the adoption process, the focus for CIOs then becomes finding real value from implementation.

Nearly two-thirds of CEOs say they expect to see a return on their investment in three to five years. Fewer — less than one-third — expect a faster ROI of one to three years, according to KPMG data.