In a shift from AI hype to AI realism, organizations are increasing their AI investments with a focus on long-term value

Core Insights - Business leaders are becoming more pragmatic about AI strategies, focusing on governance, skills, accountability, and human-AI interaction to maximize AI's transformative potential [1][5] AI Adoption and Investment - 38% of organizations have operationalized generative AI use cases, with 60% exploring agentic AI applications; Chinese organizations lead in piloting agentic AI [2] - Two-thirds of business leaders believe failing to scale AI quickly could result in missed strategic opportunities and loss of competitive edge [2] Measuring AI Success - Success metrics for AI are evolving beyond operational efficiency and cost reduction to include revenue growth, risk management, compliance, knowledge management, and customer experience [3] - Over half of organizations prioritize data sovereignty to maintain control over sensitive data [3] Future AI Investments - Organizations plan to increase AI investments, focusing on high-impact areas and reallocating resources from lower-value projects; expected allocation for AI initiatives will rise from 3% in 2025 to 5% in 2026 [4] - Key focus areas include infrastructure, data governance, and workforce upskilling to support AI adoption [4] AI in Decision-Making - More than half of CXOs currently use AI to support strategic decision-making, with expectations for this to double in the next three years; current uses include emails, meeting notes, and research [6][7] - Early adopters report reduced decision-making time and costs, as well as enhanced creativity and foresight [7] Trust and Concerns in AI Usage - Only 41% of CEOs, CFOs, and COOs express above-average trust in AI for decision-making, with concerns about legal risks and the explainability of AI-influenced decisions [9] - A significant number of senior leaders are hesitant to publicly disclose their use of AI due to reputational risks [9]