Let’s be honest; most CEOs aren’t ready for artificial intelligence. Not even close. A Kearney report suggests that AI will be the most disruptive force to hit business in over three decades. And yet, a Harris Poll found that while 70% of CEOs believe companies with weak AI strategies could be left behind from the competition, 54% admit their rivals may already have a better AI game plan.
The AlixPartners’ 2025 Disruption Index revealed something striking: 67% of CEOs reported feeling more disrupted than last year, the highest level since COVID. Even more telling, 62% expect significant changes to their business models in response to AI.
But here’s the twist: Optimism is rising alongside the disruption. The same study found that 80% of executives are somewhat optimistic about AI’s potential, and only 26% feel more anxious than last year—a four-point drop from 2024. In short, leaders are beginning to see AI not just as a challenge but as an opportunity to reshape their industries.
Nowhere is this more evident than in retail. Over 70% of retail executives expect to channel their AI investments into growth, not just cost-cutting. That means AI is all about automation and efficiency, but also about driving entirely new customer experiences and business models.
AI adoption: Big talk, slow action
AI is no longer an experiment. It is a business imperative. And yet, while nearly every CEO is talking about AI, far fewer are implementing it at scale. There is a fundamental disconnect between ambition and execution, and the reasons behind it reveal a stark reality: Many leaders still don’t know how to turn AI potential into results. Why is that?
One of the biggest obstacles is the ROI black hole. Ask any CEO about AI, and they’ll rave about its transformative power. But ask them to quantify its financial impact, and suddenly the confidence fades. In fact, a Gartner survey indicates that 30% of Chief Data and Analytics Officers (CDAOs) face difficulties in quantifying the impact of their data, analytics, and AI initiatives on business outcomes.
Furthermore, a survey conducted by The Harris Poll and commissioned by Dataiku, a leading AI and machine learning platform, revealed that 74% of CEOs fear they could lose their positions within two years if they fail to achieve significant AI-driven results. Additionally, 94% believe that AI agents might offer better business advice than human board members. The same survey highlighted that over 70% of CEOs think peers could be ousted due to flawed AI strategies, and 54% feel competitors may already have superior AI implementations.
A report by BCG found that 74% of companies struggle to achieve and scale value from their AI investments. This suggests that many organizations, including those led by CEOs, face challenges in realizing tangible benefits from AI projects.
Finally, the most dangerous mindset of all might well be the “good enough” fallacy. Some CEOs assume that just because their company has dabbled in AI—whether through chatbots, automated reports, or basic data analytics—they’re ahead of the curve. They’re wrong. AI adoption in 2025 must be about full-scale transformation. Anything less is just delaying the inevitable.
The AI-ready CEOs
Some CEOs get it. Jensen Huang, CEO of Nvidia, has turned AI into the company’s backbone, positioning Nvidia as the kingmaker of AI computing. His strategy? Own the hardware and let the world build on it.
Jack Ma’s pivot at Alibaba is another masterclass. After regulatory crackdowns, Ma went all-in on AI-driven commerce, pushing new AI-driven product recommendations and logistics automation. The result, a major comeback story.
Meanwhile, Shantanu Narayen at Adobe is monetizing it. In Q1 2025 alone, Adobe raked in $125 million in AI-generated annual recurring revenue (ARR)!
The bottom line
The next two years will separate the visionary CEOs from the laggards, the disruptors from the disrupted. Those who recognize the fact that AI is a full-scale business revolution and act decisively will be the ones shaping the future, while those who hesitate will watch their industries evolve without them.
In addition, companies that ignore AI’s transformative potential will shrink, lose market share, and ultimately become obsolete as AI-powered competitors outmaneuver them at every turn. AI isn’t a luxury or a side project; it’s the defining force of competitive survival. But will today’s CEOs be bold enough to seize it?
Uncover key insights on how AI is transforming retail.
