The AI Readiness Gap: Top Risks and How to Overcome Them

Artificial intelligence is transforming industries, but many CIOs and IT leaders face significant obstacles - and hesitations - in adopting it effectively. We surveyed 1,000+ CIOs/CTOs and IT decision-makers to explore AI hurdles, risks and readiness across the industry spectrum. What we found was that although a majority of decision-makers say they are exploring, if not adopting AI technologies, specifically, Generative AI, half of them admitted to doing so before they were fully prepared.

So, what are the key drivers behind IT leaders' AI adoption efforts, and where do they lack confidence in the AI readiness process today? More importantly, how can businesses navigate the pitfalls that early adopters have encountered? Let's examine the primary barriers IT leaders face with AI adoption.

For actionable guidance on overcoming these challenges, download Presidio's full 2024 AI Readiness Report: Greatest Risks and Ways to Avoid Them, filled with practical tips for a smooth and successful journey.

A Strong Desire for AI-But Barriers Remain

It's clear that companies are eager to adopt AI. According to our survey, 96% of IT leaders believe AI offers a competitive advantage, and 71% have made it their top investment priority, even ahead of cybersecurity. However, several barriers are slowing down their AI readiness progress:

• Data problems: Over 86% of IT leaders reported issues with data, such as difficulty accessing real-time data and making sense of it. Without good data, AI can't live up to its potential. Concerns about data privacy and security are also high, especially in industries like financial services and healthcare.

• Lack of GenAI preparation: While 80% of companies have already adopted GenAI, half admit they weren't ready. Rushing into AI without the right planning can lead to inefficient processes and higher costs down the line.

• Challenges with making AI work: A whopping 90% of CIOs expressed concern about integrating AI into their operations, with this number rising to 92% among all IT leaders. Adopting AI is one thing, but making it fit smoothly with current systems is a whole different challenge.

Without addressing these issues, companies risk facing the same problems that have led to failed AI projects in the past.

5 Reasons AI Projects Fail

Despite the growing enthusiasm for AI, not every project succeeds. Presidio's survey identified five common reasons AI projects fail:

• Rushing without a plan: 20% of IT leaders said adopting AI without a clear strategy was the main reason for failure.

• Poor data quality: 17% pointed to bad or incomplete data as a major roadblock.

• Weak data management: 11% noted that poor management of data led to AI projects falling apart.

• Lack of cloud support: 10% said their cloud infrastructure wasn't strong enough to support AI. 

• Unrealistic expectations from leadership: 8% reported that setting unrealistic goals or timelines for AI results led to disappointment.

Understanding these causes can help organizations address their AI readiness and focus on key areas as they scale out their AI programs. By taking a strategic approach, making sure data is ready, and setting clear expectations, companies are more likely to see their AI initiatives succeed.

Governance and Security-Key to Safe AI Use

Even with the right infrastructure, AI adoption comes with risks. According to IT leaders:

• Data exposure(49%) is the top concern, with fears of sensitive information leaks, especially in sectors like healthcare and financial services.

• Lack of human oversight(38%) is another significant challenge, underscoring the need for careful monitoring.

• Regulatory issues(40%) add further complexity, with strict compliance requirements across industries.

To address these risks, companies can develop clear governance policies that ensure AI tools are used securely and ethically. Strong governance not only helps avoid issues but also protects a company's reputation and ensures regulatory compliance

Preparing for AI's Future: Staying Ahead of the Curve

The landscape of AI is evolving rapidly, and it's only going to become a bigger part of everyday business. Organizations that plan carefully, invest in the right infrastructure, and prioritize security and governance will be best positioned to benefit from AI's full potential.

Ready to take the next step? Download Presidio's 2024 AI Readiness Report: Greatest Risks and Ways to Avoid Themfor essential adoption tips, key insights, and expert recommendations to support your AI journey.

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