AI FOMO Is Driving Business Spending, Says IBM
The AI Gold Rush of Fear
In a revealing new report from IBM’s Institute for Business Value, 61% of executives admitted they’re investing in AI primarily to avoid falling behind industry peers—not necessarily because they’ve built a clear strategic roadmap for its deployment. The study, which surveyed 3,000 global C-suite officers, found that organizations are moving quickly to incorporate generative AI, with over 85% planning or already taking active steps. But this rush appears more motivated by competitive pressure than by clear return-on-investment metrics or coherent innovation plans. IBM’s findings highlight a critical challenge: a majority of companies are reacting to AI trends instead of leading them.
Leaders Lack Confidence in AI Readiness
Despite the rapid investment, confidence in AI preparedness remains low. Only 29% of surveyed executives feel confident in their organization’s readiness to adopt generative AI successfully. Concerns range from adequate data governance and trustworthy outputs to workforce skills and ethical oversight. The disconnect between urgency and preparedness may lead to rushed implementations that fail to deliver value—or worse, introduce risks. IBM recommends a more structured transition, calling for companies to establish an “AI compass” to guide their investment decisions, operationalization processes, and impact assessments to avoid costly missteps.
