What every CEO should know about introducing AI in the company
- Von Till Jäkel
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INTRODUCTION: WHY AI IS A MATTER FOR THE BOSS
Imagine you are sitting in a board meeting and your competitors announce that they have successfully implemented AI. Efficiency gains, better customer analysis, automated processes – and suddenly you realise that if you don’t understand AI, you risk being left behind. Research shows that 77% of CEOs believe AI will fundamentally change their business within three to five years. But AI is not just a technology issue, it is a strategic issue that needs to be driven by you as a CEO. It’s about more than algorithms – it’s about competitive advantage, corporate culture and sustainable transformation. AI can redefine your business strategy, open up new markets and optimise processes. Here are the top 5 things every CEO needs to know about AI!
1. AI IS NOT AN IT PROJECT - IT IS A STRATEGIC DECISION
Artificial Intelligence (AI) is more than just a technology gimmick. It can fundamentally change the way your business operates. According to a McKinsey study, companies that use AI strategically can achieve up to 20% higher productivity gains than their competitors. However, the full potential of AI can only be realised if the technology is not seen as an isolated project, but as an integral part of business strategy.
Successful AI adoption is not just a task for IT, but a strategic decision that must be driven by the C-suite. CEOs must decide which areas of the business can benefit most from AI, how AI will be integrated into core processes in the long term, and what organisational changes will be required. This strategic perspective ensures that AI is not treated as short-term hype, but creates sustainable competitive advantage. Success stories such as Amazon, which became a market leader through AI-assisted logistics and personalised product recommendations, show that a CEO who sees AI as a strategic lever can transform the business in the long term.
2. The biggest success factor is not technology, but culture
Even the best AI models are useless if employees do not accept or understand them. Studies show that more than half of AI projects fail because employees reject them or perceive them as a threat. Resistance to AI often stems from uncertainty or a lack of trust. A CEO must therefore not only drive the technology forward, but above all create a culture in which employees see AI as a tool, not a threat.
Transparent communication and training are key. Employees need to understand that AI will not replace their jobs, but rather automate repetitive tasks and allow them to take on more creative and strategic roles. Companies such as Siemens have successfully introduced AI by actively involving employees in the development process. Workshops, training and pilot projects help to allay fears and foster a culture of innovation. Companies that successfully implement AI often invest twice as much in change management as those that fail.
3. AI NEEDS DATA, BUT ABOVE ALL THE RIGHT DATA
Many companies are sitting on a mountain of data, but only a few know how to use it sensibly for AI. Data quality is more important than data quantity. Studies show that 40% of failed AI projects are due to poor data quality.
Solid data management is the foundation for successful AI projects. This includes not only the collection and storage of data, but also its structuring and maintenance. Organisations should ensure that their data is complete, accurate and consistent.
Linking data sources is particularly important to provide comprehensive insights. The better the database, the faster and more accurate AI can deliver valuable insights.
4. AI DOES NOT RUN ITSELF - CONTINUOUS OPTIMISATION IS ESSENTIAL
An AI solution is not a static product that can be deployed once and then forgotten. Algorithms need to be trained, results monitored and models continually improved. Studies show that AI models often lose up to 15% of their accuracy after six months without monitoring.
To counteract this erosion, an established MLOps framework – processes for continuously integrating, deploying and monitoring AI models – is critical. AI systems require up-to-date training data and must be regularly checked for bias and errors. This prevents outdated or faulty models from having a negative impact on the business. Successful companies, such as Spotify, use continuous optimisation processes to constantly improve their recommendation algorithm and strengthen their market position.
5. AI ETHICS AND COMPLIANCE: A CEO MUST TAKE RESPONSIBILITY
AI can offer great opportunities, but it can also pose risks, whether through discrimination in algorithms, data breaches or unexpected biases in decision-making processes. 85% of CEOs see ethical concerns in the use of AI as one of the biggest challenges.
To minimise the risks, companies should implement an AI governance model that defines ethical principles and clear guidelines. An ethics board can help by ensuring that AI models operate fairly and transparently. This is particularly important in the financial and healthcare sectors to gain the trust of customers and regulators. Major technology companies have set up dedicated teams to focus on the ethical design of AI, setting an example for other companies.
BONUS TIP: BUILD TALENT & KNOW-HOW
AI cannot be used effectively without the right skills. Companies must either train their own experts or bring in external partners to expand their AI capabilities. However, sustainable success with AI is best achieved when the expertise is built within the organisation. According to one study, companies that develop internal talent have a 60% greater chance of success with AI projects.
Successful organisations invest heavily in developing internal talent. This is not just about training data scientists, but also about training managers and people in specialist departments. AI should be seen as part of the company’s DNA. AI pioneers rely on internal training programmes and specifically develop “AI ambassadors” who actively engage teams in AI projects and bring knowledge back into the organisation.
CONCLUSION: AI IS A CEO ISSUE
Implementing AI can revolutionise your business, but only if it is approached strategically. CEOs need to actively engage, set a clear direction and create a culture in which AI can be used successfully. If you leave AI to IT, you will not only lose control, you will also miss out on the full potential of this technology.
Till Jäkel
COO