Artificial Intelligence Becomes a Business Tool

The growth of artificial intelligence is impossible to ignore, and more businesses are making it part of their operations.

In a recent Marcum LLP-Hofstra University survey, 26% of CEOs responded that their companies have used AI tools.

CEOs said they use AI for everything from automation, to predictive analytics, financial analysis, supply chain management and logistics, risk mitigation, and optimizing customer service. 

Another 47% of CEOs said they are exploring how AI tools can be used in their operations. 

Only 10% said they don’t envision utilizing AI tools, and 16% were uncertain whether it would be relevant for their business. 

The survey, conducted in February, polled 265 CEOs from companies with revenues ranging from $5 million to more than $1 billion. 

Rising Expectations

58% of CEOs surveyed said that expectations and demands from their customers and clients increased in the last year. 

CEOs said those expectations include more personalized service, immediate response times, more technology, and refusing price increases. 

“CEOs are challenged to meet higher expectations from customers.”

Marcum’s Jeffrey M. Weiner

“Now that the pandemic economy is behind us and companies have resumed full operation, CEOs are challenged to meet higher expectations from customers,” said Jeffrey Weiner, Marcum’s chair and CEO.

“This certainly includes figuring out how to deploy new tools such as artificial intelligence to effectively position their companies for the future.”

When asked about business planning in the next 12 months, economic concerns (53%), availability of talent (48%), and “rising material/operational costs” (43%) were the top three most important influences for CEOs.

Growing Optimism

There is some growing optimism among CEOs, with 33% responding that they are “very concerned” that the economy will experience a recession in the coming year.

That number is down from 47% in Marcum’s November 2022 survey. 

54% of CEOs said they were “somewhat concerned” about a recession, compared with 43% in November. 

“I think the uptick in CEO optimism is a reflection not only of their feelings about the economy, but their confidence in their own ability to be flexible and meet the moment.”

Hofstra University’s Janet Lenaghan

84% said they had a positive overall outlook on the business environment.

“I think the uptick in CEO optimism is a reflection not only of their feelings about the economy,” said Janet Lenaghan, dean of Hofstra University’s Zarb School of Business, “but their confidence in their own ability to be flexible and meet the moment, something they had to learn to get through COVID-19.”

Succession Plans

The survey also asked CEOs about leadership succession, calling it “an essential process for ensuring business continuity, retaining talent, and developing future leaders.”

Most CEOs (79%) said their companies have a succession plan in place, but only 45% were “very confident” in that plan.

41% of CEOs of companies without a succession said it wasn’t a priority for their companies. 

The Marcum-Hofstra survey is conducted periodically by Hofstra MBA students as a way to gauge mid-market CEOs’ outlook and priorities for the next 12 months.