In a new global study conducted by the IBM Institute for Business Value, it has been revealed that customer experience is the highest business priority for over half (54%) of African CEOs surveyed. This finding sheds light on the increasing recognition among African organisations of the crucial role that customer satisfaction plays in driving business success.
The study, titled “CEO Decision-Making in the Age of AI: Act with Intention,” delves into the perspectives of African CEOs on adopting new technologies like generative AI, automation, deep learning, and advanced analytics. These leaders are optimistic about the potential benefits of AI and analytics, as they expect to realise significant value from these advanced technologies. Notably, cloud computing (58%), automation (51%), generative AI, deep learning, and machine learning (50%) are viewed as the most promising areas for driving positive outcomes over the next three years.
However, the road to AI adoption is not without its challenges for African organisations. The study highlights several key barriers that hinder AI readiness in the region. Among the most influential external factors are technology-related challenges, cited by 53% of African CEOs, followed by market factors (51%), regulatory factors (49%), and workforce and skills (33%). These hurdles underscore the need for strategic planning and preparedness to harness the full potential of AI.
One significant concern for CEOs, not just in Africa but globally as well, is data security. More than half (57%) of CEOs surveyed express apprehensions about data security, while 48% are worried about bias or data accuracy. These concerns could potentially slow down the adoption of generative AI and other AI-related technologies. For African CEOs, the data challenges are even more pronounced, with 48% citing unclear data calculation and reporting across suppliers and partners, and 47% facing similar challenges within their organisations.
Julia Carvalho, the General Manager of IBM Africa Growth Markets, emphasised the opportunities that the Fourth Industrial Revolution brings to Africa: “The Fourth Industrial Revolution has presented Africa with an opportunity to leapfrog various stages of economic development. Consequently, African organisations are leveraging generative AI and emerging innovation models to accelerate innovation, enhance customer experiences, productivity and profitability, and environmental sustainability, to name a few. However, it’s critical that CEOs in Africa establish and implement clear and consistent standards as it concerns the utilisation of AI across all areas of strategic focus, as it will determine the level of investment and, ultimately, an organisation’s success in a rapidly advancing digital economy.”
By leveraging generative AI and innovative models, African organisations can accelerate innovation, enhance customer experiences, improve productivity and profitability, and promote environmental sustainability.
The study also sheds light on the changing landscape of strategic decision-making within African organisations. CEOs are increasingly relying on operational, technology, and data leaders to make crucial decisions. COOs (63%) and CFOs (54%) are identified as key decision-makers, with technology leaders such as CIOs (41%) and Chief Technology or Chief Digital Officers (39%) gaining influence in shaping organisational strategies.
Nevertheless, the study reveals that the absence of consistent standards in strategic focus areas has become a major hurdle for African CEOs. Around 60% of CEOs in Africa report that a lack of clear standards is delaying their investments in AI and related technologies. This calls for a concerted effort to establish cohesive guidelines and frameworks to facilitate effective and efficient AI adoption.
While sustainability is recognised as the top challenge in the respective AI journeys of CEOs in Africa, they also face a delicate balancing act concerning engaging in challenging public issues. 39% of CEOs identify environmental sustainability as their greatest challenge, alongside cybersecurity and talent recruiting/retention, both at 28%. On the other hand, CEOs are cautious about taking public stands on social, geopolitical, and ESG (Environmental, Social, and Governance) issues that impact customers and employees. While 73% believe they should take a stand, 39% admit to regretting a public stand they have taken in the past three years.
To access the full study, visit: https://ibm.co/c-suite-study-ceo.
To learn more about the top trends and strategic bets business leaders are making to boost productivity, visit: https://www.ibm.com/thought-leadership/institute-business-value/en-us/report/seven-bets.
