Exploring the Prevailing Optimism in AI Among Fortune 1000 Leaders
In the ever-evolving landscape of artificial intelligence (AI), a recent survey has shed light on the prevailing optimism among business leaders, particularly those from Fortune 1000 companies. The 2025 AI and Data Leadership Executive Benchmark Survey, conducted by Randy Bean and Tom Davenport, a professor of IT and management at Babson College, reveals that despite the concerns surrounding generative AI, businesses are increasingly embracing this technology and integrating it into their operations.
The survey highlights a significant shift in the adoption of generative AI. Last year, only 5% of respondents reported having implemented the technology at scale. This year, that number has surged to 24%, with early-stage production also seeing a notable increase from 25% to 47%. The percentage of organizations merely experimenting with generative AI has dropped from 70% in the previous year to 29% this year.
The study focused on AI and generative AI usage within 125 Fortune 1000 organizations. The majority of survey respondents, 91%, were chief data officers (CDOs), chief data and analytics officers (CDAOs), and chief artificial intelligence officers (CAIOs). A smaller percentage, 4%, held the title of CIO or CTO, while 3% were C-suite executives. Most of these leaders, 85%, were based in North America.
Bean and Davenport concluded that these data and AI leaders are optimistic about the business value of generative AI. A significant portion, 58%, believes that the primary value of AI lies in productivity gains and efficiencies. Despite acknowledging potential business threats posed by AI, such as the spread of disinformation or misinformation (53.2%), ethical bias (19.8%), and job loss or displacement (4.8%), an overwhelming 96.6% of those surveyed view the overall impact of AI as beneficial.
Who Runs AI?
The survey also delves into the organizational dynamics of AI leadership. In an interview with CIO, Bean discussed the varying perspectives on whether AI initiatives should be managed by the business side or the technology side of an organization. Historically, AI initiatives have been under the purview of the technology side, but there is a growing trend of data and AI leaders being positioned on the business side. Bean personally believes that AI should be managed by the business side.
Davenport, however, offers a different viewpoint. He argues that if a CIO is focused on business transformation, it is more effective to have all subsidiary functions report to them. He points out the potential frustration for business leaders who have to navigate multiple tech leaders to implement a technology initiative.
Survey respondents were divided on this issue, with 36.3% reporting that data and AI operations report to the business, 47.2% indicating that technology leadership is in charge, and 16.5% stating they have other reporting relationships, such as to transformation leadership.
What’s the Business Value?
Despite the enthusiasm for AI, the survey found that few companies are meticulously measuring productivity gains from AI. Bean attributes this to the fact that 90% of Fortune 1000 companies are legacy companies, which tend to be more cautious and risk-averse due to their long-standing customer franchises.
Bean noted that despite the industry enthusiasm, many chief data officers and chief AI officers acknowledge that their organizations are still in the early stages of AI adoption. Davenport, reflecting on the survey results, mentioned that last year, generative AI seemed to be responsible for significant changes in the data cultures of organizations. However, this year, the impact appears to have diminished, suggesting that generative AI alone may not be sufficient to transform organizational data cultures.
The report indicates that data and AI leaders remain positive about the business value of generative AI. Nearly half, 46%, believe that the business value is already high or significant and growing, while another 32% describe it as modest but increasing. Most respondents, 58%, attribute the primary value to exponential productivity gains or efficiencies.
However, the authors caution against taking such confidence for granted. Few companies are rigorously measuring productivity gains or assessing how liberated knowledge workers are utilizing their freed-up time. While some academic studies have measured generative AI productivity gains, they generally report improvements but not exponential ones.
Challenges in Data and AI Leadership
The report also highlights ongoing challenges in data and AI leadership. The role of the CDO is still evolving, characterized by high turnover, short tenures, and a lack of clear understanding. Despite these challenges, most organizations, 89%, believe that AI will be a transformational technology akin to the internet.
In conclusion, the survey underscores the prevailing optimism among Fortune 1000 leaders regarding AI’s potential to drive business value. While challenges remain, the increasing adoption of generative AI and the positive outlook of data and AI leaders suggest a promising future for AI in the enterprise.
Originally Written by: Paul Barker
