A recent survey by Ernst & Young (EY) reveals that while many organisations are rushing to invest in generative AI, a large majority are struggling to separate genuine AI capability from marketing hype. The report showed that 75 % of CEOs believe their company must act now on generative AI or risk losing a competitive edge.
Despite this urgency, the survey found there is considerable uncertainty: 68 % of respondents cited uncertainty around the technology as a barrier to adoption. Meanwhile, 54 % have already hired new talent with AI skills and 42 % are running AI pilots or partnerships — yet over three-quarters say they see a surge in firms claiming AI expertise, making it harder to identify credible partners.
The data also raises a cautionary flag: 66 % of companies that say they have been significantly impacted by generative AI believe it will redefine their entire business and operating model within two years — a level of transformation that EY suggests may be overly optimistic.
Furthermore, companies facing declining growth are paradoxically further behind in AI adoption and less likely to boost AI investment — indicating a gap between ambition and execution.
In summary, the survey underscores that while AI is a major strategic focus, many organisations struggle with identifying valid AI solutions and managing the hype. For businesses looking to navigate this terrain successfully, it will be vital to set realistic goals, vet partners carefully, and build foundational rather than purely headline-grabbing AI initiatives.
