The world of corporate leadership is undergoing a significant transformation, with AI technology at its core. According to the latest research from NTT, an overwhelming 89% of global CEOs view AI as a key component for maintaining long-term profitability, while 77% plan to increase their budgets for AI investment in 2025.
AI adoption reached a crucial tipping point in 2024 as companies transitioned from pilot schemes to full-scale implementation, highlighting the growing necessity for executives to demonstrate tangible returns on their technological investments. Despite the ongoing economic uncertainty and market volatility, the demand for AI is higher than ever.
The recent NTT survey, which involved 351 CEOs of companies with annual revenues exceeding $1bn in the US and $500m elsewhere, reveals that AI has moved from an experimental concept to a mainstream priority. As technology budgets grow, organisations are increasingly focusing on automating operations, enhancing customer experience, and improving overall efficiency.
While the expansion of AI investments is evident across the globe, the ways in which these technologies are being adopted differ regionally. In the US, for instance, executives are placing greater emphasis on AI’s potential for driving revenue growth compared to their counterparts in other markets, who prioritise operational efficiency.
Key Findings from NTT’s AI Survey:
- 89% of CEOs consider AI essential for future competitiveness.
- 77% intend to boost their AI budgets in 2025.
- 87% of executives recognise the urgent need for AI governance, with concerns about data privacy and cybersecurity ranking highest.
- 85% worry about AI’s environmental impact, particularly its energy consumption.
- 90% of CEOs are familiar with photonic computing networks, which could significantly reduce power consumption while improving data transmission capabilities.
The survey also predicts that 70% of companies will increase their overall technology investments next year, with nearly half (48%) expecting their generative AI investments to rise by 1-10%, and 29% forecasting increases of more than 10%.
AI in the Corporate Spotlight
Generative AI, which uses machine learning to create new content and automate processes, is now leading the charge in enterprise technology priorities. The survey shows that 44% of CEOs rank it among their top three technology focuses for 2025. Meanwhile, 22% highlight AI-augmented software development as a key priority.
Other technologies are also on the rise, including the Internet of Things (IoT) and cloud computing, with 25% and 23% of respondents, respectively, noting them as crucial elements in their strategic plans.
Vito Mabrucco, Global CMO at NTT, reflects the optimism around AI, stating: “The data is clear – AI is set to receive increased investment, reflecting its vast potential to drive business success.”
A Growing Focus on AI Governance
As AI becomes more integrated into business operations, the need for robust governance frameworks is becoming increasingly evident. The NTT research shows that 87% of CEOs recognise the necessity for clear guidelines and risk management frameworks for AI, with concerns about data privacy and cybersecurity taking centre stage.
In the US, 46% of CEOs see regulatory compliance as a major challenge, a figure notably higher than the 33% globally. As AI’s capabilities expand, the need for regulation and oversight to ensure responsible use is becoming more urgent.
Muneki Nemoto, NTT’s Chief of AI Governance, adds: “The unpredictable nature of AI’s actions means that both the opportunities and risks it presents need to be carefully managed.”
The environmental impact of AI is another area of concern, with 85% of executives acknowledging its energy consumption as a challenge. More than 80% expect governments to introduce regulations addressing AI’s environmental footprint.
Photonic Computing: The Future of Sustainable AI
NTT’s research also points to the increasing interest in photonic computing, a revolutionary technology that uses light instead of electricity to process data. With the potential to reduce power consumption by up to 100 times and increase data transmission speeds by 125 times, photonic computing could help address some of the major environmental challenges facing AI development.
NTT’s IOWN initiative, designed to develop photonic networks, aims to significantly lower energy use while boosting performance. This aligns with a broader shift towards more sustainable and responsible technology practices, with 50% of executives calling for businesses to lead the way in developing eco-friendly technologies.
Looking Ahead: AI’s Broader Impact
As AI technologies continue to evolve, they are expected to reshape not just business models but entire industries. Wendy Collins, Chief AI Officer at NTT Data North America, highlights the need for businesses to move beyond expectations of automation and cost savings: “To truly benefit from AI, organisations must focus on customer engagement and securing a competitive edge.”
Abhijit Dubey, President and CEO at NTT Data, agrees, stressing that the impact of AI goes far beyond simple automation: “These technologies are transforming workflows and business models at every level. Leaders must navigate this transformation with a clear vision, urgency, and responsibility.”
As the AI landscape continues to evolve, the conversation about its future will remain at the forefront of corporate strategy. For now, the focus is clear – CEOs are investing in AI, not just for the sake of technology but as a vital tool for driving future growth, efficiency, and competitiveness in an increasingly digital world.
Source: https://aimagazine.com/articles/ntt-study-global-ceos-plans-for-future-ai-profitability
