The Golden Age Of AI Experimentation For CEOs
We are entering an era of calculated risks.
Companies know they need to invest in AI, but it’s a high-stakes game of trial and error. Zillow, for instance, is now considered a solid investment, yet it faced a significant setback in 2021 with its AI-powered home-price-estimate platform, Zillow Offers, which failed to deliver the expected accuracy or return on investment. Similarly, Google’s well-documented challenges that resulted from its AI-driven answers demonstrate the imperfect nature of AI development. However, Google has maintained a willingness to learn, adapting its product as it grows.
CEOs across industries are clear that AI is their most important opportunity, as reflected in the AlixPartners Disruption Index. However, our analysis suggests that more than 80% of all AI projects fail. According to PitchBook, companies have already invested $150 billion in AI applications and projects in 2024 alone which represents a significant investment that carries inherent risks. So, what differentiates companies that successfully develop an AI-driven business model from those doomed to pour money into misaligned projects?
The keys lie in aligning AI efforts with a firm’s overall strategy and in assembling teams with the right mix of skills. Leaders who are intentional about connecting AI initiatives to core business objectives and building the right capabilities are more likely to succeed. Google and Zillow are examples of companies that have a clear sense of their role in an AI-driven future despite facing setbacks.
For CEOs navigating this moment under immense pressure, the goal is to position their organizations to benefit from AI experimentation without losing sight of their strategic priorities.
At this stage in the AI boom, the immediate goal shouldn’t be to deliver transformational value; that’s the long-term vision. Instead, leadership teams should focus on building foundational capabilities by identifying the right mix of talent—including both AI experts and domain specialists—while developing prototypes aligned to business strategy. Each prototype, if successful, should demonstrate clear and incremental value that aligns with overall business goals. Such an approach enables organizations to quickly test what works, to then refine their methods, and, ultimately, to scale successful solutions that will capture value.
The competition can feel daunting, with everyone racing to be the one to realize the next breakthrough, but when you strip away the hype, this is truly a golden age for experimentation. Model capabilities are developing at an unprecedented pace, but today’s AI landscape lets teams rapidly experiment with targeted implementations and when proven successful, scale them quickly.
Throughout the process, CEOs must both manage stakeholder expectations and enhance their own understanding of AI. We advise our clients to always keep their core business objectives in focus because they often lose sight of the problems they aim to solve, distracted by flashy but irrelevant possibilities.
Our research underscores the importance of CEOs’ taking the lead: Our 2024 Digital Disruption Executive Survey, which canvassed 750 executives, found that at companies in which the C‑suite drives strategy, only 1 in 10 companies is actively driving disruption rather than merely responding to it. What do these rare CEOs know that others don’t?
Leaders who are effectively navigating this moment are focusing on identifying and experimenting with priority AI use cases, which then inform their focus in three foundational areas:
1. Data. Is the data good enough? The absence of quality data makes it nearly impossible to develop models and create products that would serve your audience effectively.
2. The technology ecosystem. Legacy technology stacks can be costly to modify and difficult to integrate with newer tools. The tools and platforms your company relies on—and the vendors behind them—will determine your ability to deploy AI effectively.
3. Operations. Strong operational capabilities are crucial for the seamless functioning of AI systems. Machine-learning operations provide the framework for managing the full life cycle of AI models, for ensuring quality control, and for enabling continuous improvement.
Those elements are explored in greater depth in the AlixPartners Practical AI for CEOs playbook. All of them require people with the right skills and the willingness to overcome new challenges, which leads us to the good news . . .
To successfully harness AI, a CEO has to build the right team. The team has to include AI experts, domain specialists, risk management professionals, human capital experts, and leaders in the areas of compliance and governance. A well-rounded team ensures that a company can navigate the complexities of experimentation while positioning itself for sustainable growth.
That means:
Generative AI investments are increasing exponentially, but the regulatory landscape and the trustworthiness of many AI solutions remain uncertain. Ultimately, the responsibility falls on company leaders to make informed, prudent decisions.
The AI boom is a technological evolution, but like every major shift before it, it will be led by strong leadership and thoughtful plans. In addition, thoughtful and clear communication is essential. CEOs and business leaders must make the case clearly for change and innovation, and soliciting input and ideas from all areas of the organization is an important step in paving the way for adoption. Companies will continue making mistakes, but those that emerge in the strongest positions will be the ones with capable, highly communicative leaders who are prepared to guide their teams through both successes and setbacks.
A company leader knows best the firm’s maturity level, readiness for AI, level of stakeholder engagement, and internal resources—from data and technology platforms to organizational structure—and that knowledge will help navigate the firm from the place it is today to the place it has to be.
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public-company directors, helping you grow your companies, build your communities and strengthen society. Learn more at chiefexecutivegroup.com.
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1:00 - 5:00 pm
Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process
Executives expressed frustration with their current strategic planning process. Issues include:
Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns. They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning. Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process. This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented. If you are ready for a Strategic Planning tune-up, select this workshop in your registration form. The additional fee of $695 will be added to your total.
2:00 - 5:00 pm
Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations.
Limited space available.
10:30 - 5:00 pm
General’s Retreat at Hermitage Golf Course
Sponsored by UBS
General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.
The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.
