Publicis Sapient reveals a divide between C-suite and V-suite leaders regarding AI implementation, risk assessment & strategic deployment opportunities.
The rapid evolution of Gen AI has created a pivotal moment for business transformation, but a significant challenge lies in the growing divide between top-level executive vision and operational reality.
A new study from Publicis Sapient reveals a concerning misalignment between C-suite executives and their vice president-level counterparts (V-suite) in how they perceive, prioritise and plan to implement Gen AI technologies.
This disconnect manifests across multiple dimensions: while C-suite leaders tend to focus on customer-facing applications and broad strategic initiatives, V-suite executives – who often possess deeper technical knowledge and hands-on implementation experience – identify a wider range of practical applications across various business functions.
Publicis Sapient has highlighted the problems from this misalignment as it threatens to undermine organisational effectiveness in harnessing Gen AI’s transformative potential.
Divergent views on Gen AI’s potential
Publicis Sapient indicates a notable disparity between C-suite executives and the V-suite in their perception of Gen AI’s potential and associated risks.
“Organisations need to encourage and motivate team members at all levels to seek out innovation and disruption.” – Simon James, Vice President of Data & AI at Publicis Sapient.
C-level executives tend to focus on more visible applications of Gen AI, such as customer experience, service and sales.
In contrast, the V-suite identifies opportunities across a broader range of functional areas, including operations, human resources and finance.
This divergence in perspective extends to the perceived importance of Gen AI in various business functions over the next three years
While more than half of C-suite respondents ranked Gen AI as extremely important for customer service, customer experience and sales, only 12% believed it would be crucial for finance.
In comparison, 30% of V-suite executives recognised its potential in financial operations.
Yet Daniel Liebermann, Managing Director at Publicis Sapient highlights how investing in AI is a leap of faith like other business investments: “Just like staking out your first e-commerce position 25 years ago, that’s likely to involve some failures.
“Harnessing the power of a bottom-up approach requires confidence, courage, risk tolerance and people skills”, he adds.
Education and awareness of Gen AI tools
The study also highlights a significant gap in the awareness of specific Gen AI tools.
Nearly 60% of CEOs considered chatbots and similar Gen AI tools to be extremely important for customer service, compared to just 24% of customer service specialist executives. Conversely, only 17% of CEOs thought AI agents and automation would be extremely important, while 33% of data and analytics executives held this view.
KEY FINDINGS FROM THE REPORT
- Over 99% of organisations report making progress with Gen AI, ranging from defining use cases to implementation
- The C-suite and V-suite have divergent views on Gen AI potential, with C-level executives focusing on customer-facing applications while V-suite sees opportunities across various functions
- 51% of C-suite respondents express heightened concern about Gen AI risks and ethics, compared to only 23% of V-suite executives
- 37% of organisations have dedicated budgets for Gen AI projects, despite more than two-thirds lacking success metrics
- Gen AI costs are already a pain point for 27% of respondents, emphasising the importance of ROI measurement
Adding to the complexity is a widespread lack of consensus on what constitutes AI maturity within organisations, with companies at vastly different stages of implementation often self-assessing their progress similarly.
This inconsistency in measuring progress and success creates additional challenges in developing coherent, organisation-wide AI strategies and use of tools.
Publicis Sapient also highlights a lack of consensus on what constitutes Gen AI maturity within organisations.
Companies at various stages of implementation of Gen AI tools often described themselves similarly in terms of maturity, regardless of their actual progress.
As Daniel Liebermann, Managing Director at Publicis Sapient points out: “It’s as hard for leaders to learn how individuals within their organisation are using ChatGPT or Microsoft Copilot as it is to understand how they’re using the internet.”
This inconsistency in vision and actual progress highlights the need for clearer benchmarks and metrics to assess Gen AI adoption and success.
Gen AI risk perception
The study also reveals a stark contrast in attitudes towards Gen AI risks between the C-suite and V-suite, where C-suite executives display significantly higher levels of concern about Gen AI risks compared to their V-suite counterparts.
While this cautious approach at the top level is understandable given the strategic implications and potential reputational risks, it may inadvertently create barriers to innovation and implementation of Gen AI tools at the operational level.
C-suite executives were more than twice as concerned about Gen AI risks compared to their V-suite counterparts, with 51% of C-suite respondents expressing heightened concern about the risk and ethics of Gen AI relative to other emerging technologies, versus 23% of V-suite respondents.
This disparity in risk perception may stem from the C-suite’s focus on abstract, big-picture dangers, while the V-suite’s hands-on experience with the technology provides a more nuanced understanding of its practical limitations and maintenance requirements.
However, Simon James, Vice President of Data & AI at Publicis Sapient points out: “A zero-risk policy is a zero-innovation policy.”
Navigating the Gen AI landscape
To maximise the potential of Gen AI and address this challenge, Publicis Sapient suggests that organisations should adopt a portfolio approach to innovation projects, rather than focusing solely on flagship initiatives.
This strategy involves empowering domain experts, connecting business units with the CIO’s office and engaging risk management teams early and often.
Daniel Liebermann, Managing Director at Publicis Sapient, emphasises the importance of a balanced approach to Gen AI implementation: “Harnessing the power of a bottom-up approach requires confidence, courage, risk tolerance and people skills”.
The report recommends five key steps to maximise Gen AI innovation in a bottom-up world:
- Adopt a portfolio approach to Gen AI strategy, recognising that a zero-risk policy is a zero-innovation policy.
- Improve communication between the CIO’s office and the risk office to ensure effective Gen AI risk management.
- Actively seek out Gen AI innovators and early adopters within the organisation.
- Utilise Gen AI itself to create and manage information about Gen AI, alongside traditional mechanisms such as task forces and dedicated innovation arms.
- Empower team members through company culture and upskilling, recognising that every company’s solution will be unique.
Empowering people to use AI is emerging as arguably the most important key to unlocking AI’s potential within the workplace, as Simon emphasises: “Organisations need to encourage and motivate team members at all levels to seek out innovation and disruption.”
