American CEOs Bet on AI Despite Fears of a Bubble

The Ongoing Enthusiasm of CEOs for AI

American business leaders, while acknowledging a possibly excessive excitement for artificial intelligence last year, continue to believe in its revolutionary potential. According to them, the real impact of AI and its ability to transform industries may be largely underestimated over a five to ten-year period.

A survey conducted by KPMG among 100 CEOs of large American companies, carried out from late January to mid-February, reveals that despite concerns about a possible overestimation of generative AI, leaders remain confident in its disruptive potential. Tim Walsh, President and CEO of KPMG in the United States, emphasized that the deployment of AI is accelerating, with companies moving from pilot phases to actual implementation in what he describes as a "disruptive" context.

Sustained Investments in AI

Although some leaders fear an investment bubble, AI remains a budget priority for the majority. Nearly 80% of the CEOs surveyed indicated that they would allocate at least 5% of their investment budget to AI this year. However, one in four CEOs believes there is an investment bubble in this area.

At the same time, about two-thirds of leaders are increasing their cybersecurity spending, a direct response to the heightened risks associated with AI. Additionally, six out of ten CEOs are focusing on developing workers' skills through AI, while half of the leaders are using these technologies to drive innovation and integrate AI into daily operations. Despite this, about one in five CEOs plans to reduce their workforce over the next year.

Recruitment Challenges

AI, according to Tim Walsh, enables employees to be more efficient, but this does not necessarily mean a reduction in staff. A team initially composed of 20 people might be reduced to 17 due to AI, but would also require the addition of five technical experts to manage AI-related aspects, thus increasing the total team size.

However, 61% of CEOs fear they will not be able to recruit enough qualified workers in the tech field. Furthermore, one-third of leaders are concerned about the impact of AI on leadership development, particularly by reducing experiential learning opportunities for new employees. Others highlight an excessive reliance on AI in decision-making and, to a lesser extent, a reduced exposure to ambiguity and learning through trial and error.

Cybersecurity: A Major Concern

Data security and privacy are major concerns for leaders, with nine out of ten CEOs expressing fears about threats posed by AI, such as malware attacks and AI-assisted phishing. Eight out of ten CEOs also cited internal threats from AI agents.

About six out of ten CEOs are also worried about potential quantum computing attacks against encryption. Walsh noted that cyber risks are accelerating, and that AI could play a central role in these threats. To mitigate these risks, more than two-thirds of CEOs are looking to attract cybersecurity talent, while six out of ten are investing in training their current employees.

Six out of ten CEOs stated that the speed of AI innovation and risk management are the factors most likely to affect their companies' prosperity over the next three years.

Mixed Economic Outlook

CEOs display notable confidence in the growth of their sector and their company, with 86% and 83% optimism, respectively. However, this confidence wanes when it comes to the overall economy, with only 55% of leaders optimistic about U.S. growth and 53% about global growth.

The KPMG survey was conducted before the escalation of tensions with Iran and the rise in oil prices, although these factors have already begun to raise concerns. More than half of the CEOs view political uncertainty as a source of worry.