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Gartner Identifies Four Emerging Challenges to Delivering Value from AI Safely and at Scale

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Gartner's survey reveals 57% of CIOs are leading AI strategies in their enterprises, but face four key challenges in delivering value with AI:

1. Uneven business benefits: Productivity gains from GenAI vary by employee, job complexity, and experience level.
2. Spiraling costs: Over 90% of CIOs report cost management limits AI value.
3. Data and AI proliferation: On average, only 35% of AI capabilities are built by IT teams.
4. Employee impact: AI can positively and negatively affect performance and well-being.

To address these challenges, CIOs must manage AI benefits as a portfolio, understand AI costs, implement a 'tech sandwich' approach for governance, and actively manage behavioral outcomes. The pace of AI adoption (steady or accelerated) depends on organizational ambitions and industry dynamics.

Un sondaggio di Gartner rivela che il 57% dei CIO guida strategie di intelligenza artificiale nelle proprie aziende, ma affronta quattro sfide principali per offrire valore con l'IA:

1. Benefici aziendali disomogenei: I guadagni di produttività da GenAI variano in base ai dipendenti, alla complessità del lavoro e al livello di esperienza.
2. Costi in aumento: Oltre al 90% dei CIO riporta che la gestione dei costi limita il valore dell'IA.
3. Proliferazione di dati e IA: In media, solo il 35% delle capacità IA sono sviluppate dai team IT.
4. Impatto sui dipendenti: L'IA può influenzare positivamente e negativamente le prestazioni e il benessere.

Per affrontare queste sfide, i CIO devono gestire i benefici dell'IA come un portafoglio, comprendere i costi dell'IA, implementare un approccio 'sandwich tecnologico' per la governance e gestire attivamente i risultati comportamentali. Il ritmo di adozione dell'IA (costante o accelerato) dipende dalle ambizioni organizzative e dalle dinamiche di settore.

Una encuesta de Gartner revela que el 57% de los CIO están liderando estrategias de IA en sus empresas, pero enfrentan cuatro desafíos clave para entregar valor con la IA:

1. Beneficios comerciales desiguales: Las ganancias de productividad de GenAI varían según el empleado, la complejidad del trabajo y el nivel de experiencia.
2. Costos en aumento: Más del 90% de los CIO informan que la gestión de costos limita el valor de la IA.
3. Proliferación de datos e IA: En promedio, solo el 35% de las capacidades de IA son desarrolladas por equipos de TI.
4. Impacto en los empleados: La IA puede afectar positiva y negativamente el rendimiento y el bienestar.

Para abordar estos desafíos, los CIO deben gestionar los beneficios de la IA como un portafolio, comprender los costos de la IA, implementar un enfoque de 'sándwich tecnológico' para la gobernanza y gestionar activamente los resultados conductuales. El ritmo de adopción de la IA (estable o acelerado) depende de las ambiciones organizativas y de la dinámica de la industria.

가트너의 조사에 따르면, 57%의 CIO가 자사의 AI 전략을 이끌고 있지만, AI로 가치를 제공하는 데 4가지 주요 과제에 직면하고 있습니다:

1. 불균형한 비즈니스 이점: GenAI로 인한 생산성 향상은 직원, 업무 복잡성 및 경험 수준에 따라 다릅니다.
2. 급증하는 비용: 90% 이상의 CIO가 비용 관리가 AI의 가치를 제한한다고 보고합니다.
3. 데이터 및 AI 확산: 평균적으로, 35%의 AI 기능만이 IT 팀에 의해 구축됩니다.
4. 직원에게 미치는 영향: AI는 성과와 웰빙에 긍정적이거나 부정적인 영향을 미칠 수 있습니다.

이러한 과제를 해결하기 위해 CIO는 AI 혜택을 포트폴리오처럼 관리하고, AI 비용을 이해하며, 거버넌스를 위한 '기술 샌드위치' 접근 방식을 구현하고, 행동 결과를 적극적으로 관리해야 합니다. AI 채택의 속도(지속적이거나 가속됨)는 조직의 목표와 산업 역학에 따라 달라집니다.

Une enquête de Gartner révèle que 57% des CIO dirigent des stratégies d'IA dans leurs entreprises, mais font face à quatre défis clés pour apporter de la valeur avec l'IA :

1. Bénéfices commerciaux inégaux : Les gains de productivité apportés par GenAI varient selon les employés, la complexité du travail et le niveau d'expérience.
2. Coûts croissants : Plus de 90% des CIO signalent que la gestion des coûts limite la valeur de l'IA.
3. Prolifération des données et de l'IA : En moyenne, seulement 35% des capacités d'IA sont développées par les équipes informatiques.
4. Impact sur les employés : L'IA peut avoir des effets positifs et négatifs sur la performance et le bien-être.

Pour relever ces défis, les CIO doivent gérer les avantages de l'IA comme un portefeuille, comprendre les coûts de l'IA, mettre en œuvre une approche de 'sandwich technologique' pour la gouvernance et gérer activement les résultats comportementaux. Le rythme d'adoption de l'IA (stable ou accéléré) dépend des ambitions organisationnelles et des dynamiques industrielles.

Eine Umfrage von Gartner zeigt, dass 57% der CIOs KI-Strategien in ihren Unternehmen leiten, aber vier wesentliche Herausforderungen bei der Wertschöpfung durch KI gegenüberstehen:

1. Ungleichmäßige Geschäftsvorteile: Produktivitätsgewinne durch GenAI variieren je nach Mitarbeiter, Jobkomplexität und Erfahrungsgrad.
2. Steigende Kosten: Über 90% der CIOs berichten, dass das Kostenmanagement den Wert von KI einschränkt.
3. Proliferation von Daten und KI: Im Durchschnitt werden nur 35% der KI-Funktionen von IT-Teams entwickelt.
4. Auswirkungen auf Mitarbeiter: KI kann sich positiv oder negativ auf die Leistung und das Wohlbefinden auswirken.

Um diese Herausforderungen zu adressieren, müssen CIOs die Vorteile der KI als Portfolio verwalten, die Kosten der KI verstehen, einen 'Technologiesandwich'-Ansatz für die Governance umsetzen und die Verhaltensauswirkungen aktiv steuern. Das Tempo der KI-Adoption (stabil oder beschleunigt) hängt von den organisatorischen Zielen und den Branchenbedingungen ab.

Positive
  • 57% of CIOs are leading AI strategies in their enterprises
  • Employees reported saving an average of 3.6 hours per week using GenAI
  • AI can lead to operations, process-level, and business-level improvements
Negative
  • Over 90% of CIOs report cost management limits AI value
  • CIOs could make a 500%-1000% error in AI cost calculations
  • Only 35% of AI capabilities are built by IT teams on average
  • Only 20% of CIOs focus on mitigating potential negative impacts of GenAI on employee well-being

Insights

This report highlights key challenges in AI implementation, important for IT companies like Gartner. The survey revealing that 57% of CIOs lead AI strategies underscores AI's growing importance in enterprise tech. Four main challenges are identified:

  • Inconsistent business benefits
  • Spiraling costs
  • Data and AI proliferation risks
  • Impact on employee performance and well-being

The concept of "AI-steady" vs "AI-accelerated" paces is noteworthy, suggesting varied AI adoption strategies across industries. The "tech sandwich" model for managing decentralized AI and data is an innovative approach to governance. For Gartner, this research positions them as thought leaders in AI strategy, potentially boosting their advisory services demand. However, the challenges highlighted may slow AI adoption rates, impacting Gartner's AI-related revenue growth in the short term.

This report offers valuable insights into the current state of AI adoption in enterprises. Key statistics include:

  • 57% of CIOs leading AI strategies
  • Employees saving an average of 3.6 hours per week using GenAI
  • Over 90% of CIOs citing cost as a limiting factor
  • Only 35% of AI capabilities built by IT teams
  • Just 20% of CIOs focusing on mitigating GenAI's impact on employee well-being

These figures reveal both the potential and challenges of AI adoption. The varied productivity gains and the need for cost management highlight areas where enterprises may seek consulting services. For Gartner, this research demonstrates their expertise in AI trends, potentially attracting more clients to their advisory services. However, the slow realization of AI benefits and associated challenges might lead to cautious spending on AI initiatives, affecting Gartner's growth in this sector.

Analysts Explore How CIOs are Leading Today and Shaping Tomorrow During Gartner IT Symposium/Xpo 2024, October 21-24

ORLANDO, Fla.--(BUSINESS WIRE)-- A Gartner, Inc. survey of 451 senior technology leaders in the second quarter of 2024, found that 57% of CIOs said they are tasked with leading an AI strategy in their enterprise. However, four emerging challenges are making it difficult for CIOs to deliver value with AI.

“Because of the relentless innovation happening in the tech vendor race, CIOs feel like they are always living the hype, while the reality of their AI outcomes race - how tough it is to get value - makes it feel like they are also in the trough,” said Mary Mesaglio, Distinguished VP Analyst at Gartner.

“However, CIOs can set the pace in their AI outcomes race,” said Hung LeHong, Distinguished VP Analyst and Gartner Fellow. “If you have modest AI ambitions, in an industry that isn’t being remastered by AI yet, you can afford to go at a more measured pace. This is an AI-steady pace. For those organizations with bigger AI ambitions, or in an industry that’s being reinvented by AI, the pace will be faster. This is an AI-accelerated pace. Whether you’re moving at an AI-steady or AI-accelerated pace, you have to deliver value and outcomes.”

During the opening keynote of Gartner IT Symposium/Xpo, which is taking place here through Thursday, Gartner analysts explained to the audience of over 8,000 CIOs and IT executives how to overcome four emerging challenges to deliver value from AI safely and at scale.

The Business Benefits of Using AI Don’t Always Materialize

To generate business value with generative AI (GenAI), people must consistently use GenAI tools in their workflow. In a second quarter 2024 Gartner survey of over 5,000 digital workers in the U.S., UK, India, Australia and China, employees said that they saved an average of 3.6 hours per week by using GenAI. But not all employees get the same degree of benefit from using GenAI.

“Here’s the real challenge with AI productivity,” said LeHong. “Productivity gains from GenAI are not equally distributed. Gains vary by employee, not just because of their personal interest and levels of adoptions, but according to complexity of job and level of experience.”

AI-accelerated organizations are also looking at benefits beyond productivity - operations and process-level improvements, such as automating key business processes or redesigning roles to work with chatbots; and business-level, game-changing improvements, such as outcomes that create new revenue streams or redesign the enterprise value proposition.

“In these cases, CIOs should manage AI benefits like a portfolio. Determine the size of your bet in each benefit area, and manage risks and rewards across this portfolio,” said Mesaglio.

The Cost of AI Can Quickly Spiral Out of Control

More than 90% of CIOs said that managing cost limits their ability to get value from AI for their enterprise, according to a Gartner survey of over 300 CIOs in June and July 2024. In fact, Gartner believes that cost is as big an AI risk as security or hallucinations.

If CIOs don’t understand how their GenAI costs scale, Gartner estimates that they could make a 500%-1,000% error in their cost calculations.

“As a CIO, you need to understand your AI bill,” said LeHong. “You must understand the cost components and pricing model options, and you need to know how to reduce these costs and negotiate with vendors. CIOs should create proofs of concept that test how costs will scale, not just how the technology works.”

Data and AI Everywhere Creates New Challenges and Risks

With AI and data proliferating everywhere in the enterprise, AI and data are no longer centralized assets that IT directly controls. The Gartner survey of over 300 CIOs found that on average, only 35% of their AI capabilities will be built by their IT teams. This means that new approaches are needed to manage and protect data access and govern AI inputs and outputs and safely deliver AI value.

“This is where the concept of a ‘tech sandwich’ comes in,” said LeHong in describing the AI tech stack of the future. “On the bottom of the sandwich is all the data and AI from IT, typically centralized. On the top is all the data and AI coming from everywhere, typically decentralized. And the middle contains the trust, risk, and security management (TRiSM) technologies that make it all safe. It’s what you need to create to accommodate AI and data coming from everywhere.”

“As CIO, your job is to design a tech sandwich that can handle the messiness of AI, but still keeps you open to new opportunities,” said Mesaglio. “AI-steady organizations (ten AI initiatives or fewer) will govern their tech sandwiches using human teams and committees. AI-accelerated organizations will add TRiSM technologies - a set of technologies designed to create trust, monitor risk and manage security for safe AI at scale.”

Using AI Can Both Positively and Negatively impact Employees’ Performance and Well-Being

Some employees may feel a strong affinity for AI. Others may feel threatened or resentful. These intense reactions to AI can lead to unintended behavioral outcomes that negatively impact employees’ work performance, such as jealousy of those using AI and overdependence on AI tools.

However, few organizations are actively managing these behavioral outcomes. In the June/July Gartner survey, only 20% of CIOs said they focus on mitigating potential negative impacts of GenAI on employee well-being.

“Most enterprises aren’t curious enough about how AI makes their employees feel. This matters because AI can lead to all sorts of unintended behavioral outcomes,” said Mesaglio. “The critical point is that if you use change management to manage this, be intentional about who owns which behavioral outcomes. Organizations must manage behavioral outcomes with the same rigor as technology and business outcomes.”

Gartner clients can learn more in “2024 IT Symposium/Xpo Keynote at a Glance.”

About Gartner IT Symposium/Xpo

Gartner IT Symposium/Xpo is the world's most important gathering for CIOs and other IT executives. IT executives rely on these conferences to learn how to amplify the impact of the technology, insights and trends shaping the future of IT and business. Follow news and updates from the conferences on X using #GartnerSYM and on the Gartner Newsroom.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:
October 28-30 2024 | Tokyo, Japan
November 4-7 2024 | Barcelona, Spain
November 11-13 2024 | Kochi, India

About Gartner for Information Technology Executives

Gartner for Information Technology Executives provides actionable, objective insight to CIOs and IT leaders to help them drive their organizations through digital transformation and lead business growth. Additional information is available at www.gartner.com/en/information-technology.

Follow news and updates from Gartner for IT Executives on X and LinkedIn using #GartnerIT. Visit the IT Newsroom for more information and insights.

About Gartner

Gartner, Inc. (NYSE: IT) delivers actionable, objective insight that drives smarter decisions and stronger performance on an organization’s mission-critical priorities. To learn more, visit gartner.com.

Matt LoDolce

Gartner

matt.lodolce@gartner.com



Catherine Howley

Gartner

catherine.howley@gartner.com

Source: Gartner, Inc.

FAQ

What percentage of CIOs are leading AI strategies according to Gartner's survey?

According to Gartner's survey, 57% of CIOs are tasked with leading an AI strategy in their enterprise.

How much time do employees save on average by using GenAI?

Employees reported saving an average of 3.6 hours per week by using GenAI, according to a Gartner survey of over 5,000 digital workers.

What percentage of CIOs say cost management limits their ability to get value from AI?

More than 90% of CIOs said that managing cost limits their ability to get value from AI for their enterprise, according to a Gartner survey.

What percentage of AI capabilities are built by IT teams on average?

On average, only 35% of AI capabilities are built by IT teams, according to a Gartner survey of over 300 CIOs.

Gartner, Inc.

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