For CEOs, AI Innovation Is Now A Near-Term Survival Requirement

Forbes

18-06-2025

AI requires a shift in mindset for the C-Suite. Companies that fail to adopt AI technologies risk falling behind their competitors, losing market relevance, and even jeopardizing their long-term survival.
'AI is no longer a long-term innovation initiative—it's a near-term survival requirement.' This is according to a recently published Harris Poll survey conducted on behalf of AI company Dataiku, which says 74% of CEOs overall, and 79% in the U.S., said they could lose their jobs within two years if they don't deliver measurable AI-driven business gains.
So, why is AI innovation a 'near-term survival requirement?'
In a nutshell, AI requires a shift in mindset for the C-Suite. Companies that fail to adopt AI technologies risk falling behind their competitors, losing market relevance, and even jeopardizing their long-term survival—an ominous situation for any chief executive.
So, rather than considering the risks of implementing AI projects, CEOs should weigh the costs of inaction.
One of the most immediate and significant risks of not adopting AI is the potential loss of a competitive edge. Companies that are leveraging AI to improve efficiency, enhance customer experiences, and innovate are gaining a distinct advantage over those that remain hesitant. For instance, AI-powered tools can optimize supply chains, automate routine tasks, and generate insights from big data, leading to faster decision-making, improved profitability, and the ability to innovate more quickly than competitors.
Failing to adopt AI means that competitors who are embracing the technology will likely outpace your organization, attracting more customers, increasing market share, and outperforming you in critical areas such as product development, personalization, and operational efficiency.
AI isn't just about improving existing processes; it's about enabling new ways of thinking and unlocking new opportunities. The technology has the potential to improve customer service, speed product development, and more. Companies that delay adopting AI risk missing out on innovative solutions that could fundamentally transform or accelerate their businesses.
For example, AI can facilitate breakthroughs in product design by enabling rapid prototyping and simulations. It can also drive innovation in marketing by offering hyper-targeted campaigns powered by machine learning. CEOs who hesitate to implement AI may find their organizations stuck in traditional ways of thinking while competitors race ahead with cutting-edge innovations.
AI inaction can lead to inefficiency and rising operational costs. AI has the potential to automate many time-consuming and repetitive tasks, freeing up valuable human resources for more strategic work. Tasks such as data entry, report generation, customer service inquiries, and supply chain management can be optimized using AI, reducing the time and costs associated with manual labor.
Without AI, organizations may find themselves running inefficient processes, which could lead to higher operational costs and less effective resource allocation. Companies that resist AI may find their cost structures out of synch with the market, widening the competitive gap.
Customers today have higher expectations than ever before. AI-powered tools can provide hyper-personalized experiences, faster response times, and enhanced customer support through chatbots and virtual assistants—not the binary phone trees of yesterday, but personalized, human-like agents that can accomplish tasks on your behalf.
Businesses that fail to implement AI risk disappointing customers with outdated systems, slow service, and generic experiences that no longer meet modern standards. This is happening today.
Companies that do not invest in AI may lose customer loyalty to competitors that offer more sophisticated, AI-driven experiences. Declines in customer satisfaction are a one-way street to reduced revenue and brand perception.
Data is one of the most valuable assets businesses possess, yet many organizations fail to capitalize on this asset. AI excels at extracting valuable insights from vast amounts of data, enabling businesses to make data-driven decisions that can improve performance and mitigate risks.
Companies that don't implement AI solutions risk leaving vast amounts of data untapped, missing out on opportunities to enhance decision-making, predict trends, and gain deeper insights into customer behavior.
Data-driven strategies powered by AI can inform everything from product development to customer engagement, and companies that do not embrace these tools risk making decisions based on outdated or incomplete information.
As AI becomes more integrated into business operations, attracting and retaining top talent in fields like data science, machine learning, and AI engineering will become increasingly important. Organizations that fail to prioritize AI may struggle to attract highly skilled employees, as the best talent often seeks out companies that are on the cutting edge of technology.
On top of that, your existing employees may become frustrated with the lack of advancement AI can unlock. Talented workers want to work for companies that embrace innovation. Companies that avoid AI may find themselves with an outdated workforce and an inability to attract the next generation of top-tier talent.
AI is rapidly becoming a competitive advantage in regulatory-heavy industries such as healthcare, finance, and retail. Businesses that fail to implement AI solutions may be missing an opportunity to streamline or automate compliance, especially when it comes to data protection, fraud detection, and risk management.
For example, AI can enhance cybersecurity, identify financial fraud, and detect irregularities in transactions or operations. Failing to adopt AI for compliance purposes can leave an organization vulnerable to breaches, non-compliance penalties, and reputational damage.
Industries across the globe are experiencing rapid disruption due to AI-powered companies challenging traditional business models. From fintech startups leveraging AI for financial services to retail giants using machine learning for inventory management and customer insights, businesses that fail to adapt to this new environment risk being left behind as more innovative competitors take the field.
By taking a more cautious AI stance, companies open themselves up to the risk of disruption from more nimble, tech-savvy competitors who are better able to respond to market changes and evolving customer expectations. Again, CEOs don't want to be on the wrong end of the innovation curve.
Failing to adopt AI can damage an organization's reputation as a forward-thinking, innovative brand. Customers, employees, and investors expect companies to stay ahead of the competition by taking advantage of technological trends. Those that fail to do so may be seen as a tired, old brand from yesterday.
Younger consumers and employees are more likely to evaluate brands based on their adoption of newer technologies and ability to innovate. Aversion to AI and newer tech could signal a company that is not keeping up. No brand wants to be seen as tired.
The risks associated with inaction are considerable, and the risks of survival are real. Whether it's customer experience, data-driven insights, regulatory compliance, or brand perception, AI provides measurable performance characteristics, and CEOs with losing formulas may not be CEOs very long.
But that also doesn't mean chiefs need to dive headfirst into the deep end. It's important to learn and adapt. Think about low-hanging fruit in your organization. Small projects that can be automated. How old is your call center solution, for example? Where are there opportunities to drive new revenue by understanding customer preferences and buying patterns?
By choosing bite-sized projects that yield real improvements, CEOs will not only learn but also take essential steps to improve their business metrics.