CIOs struggle to balance AI investments with business goals

Technology leaders are struggling to balance AI investments with objectives, despite the push for artificial intelligence (AI) and generative AI (Gen AI) tools, according to a new study published on Wednesday.

The recent study conducted by Dell Technologies Innovation Catalyst Research revealed that while almost all Indian CIOs polled in the survey believe that Gen AI and AI will have a significant impact on industries in the future, nearly half (47%) of the respondents are unsure about the future look of their industry in the next three to five years, and a majority (57%) are finding it challenging to keep up.

They point out obstacles such as the lack of suitable talent (43%), concerns regarding data privacy and cybersecurity (35%), and limited budget (34%) as barriers hindering their innovation efforts.

The issue of Cybersecurity continues to pose a significant challenge, with 89% of CIOs reporting that they have experienced a security attack within the last year. The report highlights a broader problem through the prevalence of phishing attacks, which underscores the role that employees play in the overall threat landscape. Specifically, 84% of respondents believe that certain employees bypass IT security guidelines and practices, as they perceive them to hinder efficiency and productivity. Additionally, 65% express concerns regarding insider threats. These findings emphasize the necessity of prioritizing employee training, as they serve as the initial line of defense.

Furthermore, the research emphasizes the crucial role of modern data infrastructure, particularly as technologies like GenAI gain momentum and data volumes continue to rise. 

Additional research findings indicate a perceived shortage of talent necessary for driving innovation within the industry (67%). The top skills and competencies identified for the next five years include learning agility and desire, AI fluency, and creativity and creative thinking.

The focus is now shifting from conceptualisation to execution. As per Dell's findings, respondents recognise Gen AI's potential to bring value by enhancing IT security (74%), boosting productivity (73%), and improving customer experience (76%).

Despite this, they acknowledge the need to address certain challenges. Sixty-eight per cent are worried that Gen AI might introduce new security and privacy issues, while 89% agree that their data and intellectual property are too valuable to be entrusted to a Gen AI tool accessible by a third party.

The findings of the report by Hewlett Packard Enterprise, published earlier this month, reveal critical gaps in their strategies, such as a lack of alignment between processes and metrics, resulting in consequential fragmentation in approach, which will further exacerbate delivery issues. The study highlighted that organisational silos and neglect of ethics and compliance are posing risks, including exposure of proprietary data and the development of non-compliant AI models, impacting brand reputation, sales, and legal ramifications.

Another study by data analytics firm Qlik and Enterprise Strategy Group (ESG) published in April also identified gaps in AI underscoring the need for robust ethical frameworks and transparent AI operations to navigate the complexities of AI integration into business processes. That said, a significant 86% face challenges with ensuring transparency and explainability in AI systems, and nearly all organisations (99%) encounter hurdles in staying compliant with AI regulations and standards.

Researchers recommend that both the board and IT departments take a proactive stance in the process. They are encouraged to prioritise investing in adequate training and a modern, adaptable infrastructure, as this has been pinpointed as the key area for enhancement to promote growth and innovation.