As artificial intelligence continues to reshape business operations worldwide, a significant disconnect has emerged between executive expectations and organizational readiness. While business leaders increasingly view AI as transformative, they're simultaneously expressing serious doubts about their leadership teams' ability to navigate this technological revolution.
The AI Readiness Gap
A recent Gartner survey of 456 CEOs and senior business executives worldwide has revealed a troubling confidence gap in C-suite AI capabilities. Despite 77% of CEOs viewing AI as ushering in a new business era, they perceive a critical shortage of AI expertise among their top leadership. Only 44% of Chief Information Officers (CIOs) are considered AI-savvy by their CEOs, despite these executives traditionally being viewed as the most technologically adept members of the leadership team. Even more concerning, other technology-focused roles like Chief Information Security Officers (CISOs) and Chief Data Officers (CDOs) are also perceived as lacking sufficient AI knowledge.
Key Survey Findings
- 77% of CEOs view AI as ushering in a new business era
- Only 44% of CIOs are considered "AI-savvy" by CEOs
- Top limiting factors for AI deployment: inability to hire skilled people and difficulty calculating value/outcomes
- Only 19% of C-level executives reported revenue increases exceeding 5% from enterprise-wide AI investments
Leadership Hierarchy of AI Competence
The survey establishes a clear hierarchy of perceived AI competence among C-suite executives. CISOs narrowly lead with 46% of CEOs considering them AI-savvy, followed closely by CIOs at 44%, and CDOs at 40%. The drop-off after these technology-focused roles is dramatic, with Chief Strategy Officers ranking a distant fourth at just 24%. Other C-suite positions fare even worse, with CEOs expressing minimal confidence (between 7-18%) in roles like Chief Revenue Officers, Chief Financial Officers, Chief Marketing Officers, and Chief Human Resources Officers.
C-Suite AI Savviness Rankings (According to CEOs)
- Chief Information Security Officers (CISOs): 46%
- Chief Information Officers (CIOs): 44%
- Chief Data Officers (CDOs): 40%
- Chief Strategy Officers: 24%
- Other C-suite roles (CRO, CFO, CMO, COO, etc.): 7-18%
Historical Context of the Skills Gap
This leadership skills gap isn't new. Gartner's research indicates a persistent problem, as a similar survey from 2019-2020 also described executive tech savviness as suboptimal. What makes the current situation more urgent is the rapid acceleration of AI adoption across industries and the high stakes involved in successful implementation. As David Furlonger, distinguished VP analyst and Gartner fellow, emphasized: If savviness across the C-suite is not rapidly improved, competitiveness will suffer, and corporate survival will be at stake.
Implementation Challenges Beyond Skills
The skills gap represents just one of several obstacles to effective AI deployment. CEOs identified two primary limiting factors: the inability to hire adequate numbers of skilled professionals and difficulties calculating AI's value or outcomes. This second factor is particularly troubling, as companies continue to invest heavily in AI without clear evidence of return on investment. A McKinsey report cited in the research found that only 19% of C-level executives reported revenue increases exceeding 5% from enterprise-wide AI investments.
Potential Solutions
Rather than focusing exclusively on external hiring to address the AI skills gap, Gartner suggests organizations should prioritize upskilling their existing workforce. This approach offers a more sustainable long-term strategy for business growth while addressing immediate knowledge deficiencies. As AI continues to evolve rapidly, creating a culture of continuous learning and adaptation may prove more valuable than pursuing scarce external talent.
The Competitive Imperative
The research underscores that AI proficiency is no longer optional for business leadership. With more than three-quarters of CEOs acknowledging AI's defining role in their company's future, organizations that fail to develop AI expertise across their leadership teams risk falling behind competitors who successfully navigate this technological transition. The message is clear: companies must act decisively to close the AI knowledge gap or face potentially existential consequences in an increasingly AI-driven business landscape.