12 Shocking Stats About Innovation and Leadership: Are CEOs Stifling Progress?

Welcome to another issue of The Future of Strategy.

Built specifically for C-Suite leaders, this bi-weekly newsletter cuts through the information overload, delivering strategy-packed insights, actionable trends, and practical tools in a concise format.

It's your roadmap to navigate the chaos, lead with purpose, and achieve ambitious goals.

On that note, we chose to focus this newsletter on how leadership can make or break a company's ability to innovate.

How fast CEOs are keeping up with the AI bullet train and how it's redefining innovation will either make or break their company in the coming 5 years, at the latest.

1- At least, that's according to PwC’s 27th annual Global CEO Survey, which found that 45% of CEOs believe their company will not be viable in five years if it stays on its current path.

2- The same survey showed that 75% of CEOs believe their competitive advantage will depend on who has the most advanced generative AI integrated into their operations and products.

3- Similarly, a survey, by PA Consulting of 821 senior executives around the world to understand why innovation matters to them, found that 66% of organizations—both tech and non-tech—won’t survive without innovation.

What's concerning, however, is that the same two studies suggest that most leaders don't believe they are ready to keep up with the change.

Innovation is much larger than generative AI, but companies that plan on leading the market are trying to do so by integrating AI into their solutions.

4- The global average rate of business adoption is 84%, according to the State of AI report in 2023, published by global research firm McKinsey. However, the majority of companies are still only using AI for marketing and customer service operations.?

5- The same study analyzed results from high-performing companies versus the overall average and found that 36% of high-performing companies prioritized integrating AI in their primary products and services, while for the rest the main use was the reduction of cost by employing AI in content and marketing tasks.

6- That said, a mere 10% of publicly traded companies possess a documented innovation strategy. This implies a significant lack of direction and focus on innovation, potentially leading to missed opportunities and stagnation. Not to mention how a staggering 60% of CEOs admit to being risk-averse, according to PwC data.

7- Additionally, 97% of CEOs believe AI will shape their business’ trajectory, as per global consultancy house Accenteur’s latest data.

8- The race, however, appears to have a bumpy road as PwC's study notes that 56% of CEOs reported pending investments due to a lack of clarity on the disruptive nature of AI and the regulatory landscape.

9- The same study also shows that 67% of companies have already increased their AI budgets.?

10- Other data by Accenture highlight another pillar of innovation, where 65% of high-growth companies tend to collaborate with customers during the innovation process.

11- C-Suites of tech players tend to encourage employees to experiment away from their to-do lists. A global survey of more than 3,000 managers and 17 executives by MIT Sloan Management Review showed that 86% of employees from digitally maturing companies say that at least 10% of their time at work involves the opportunity to experiment or innovate.

12- Innovation, of course, demands more from teams than experimentation. PwC’s survey shows that 69% of CEOs believe most employees will need to develop new skills in the next couple of years just to maintain their jobs.?

Concerned about staying innovative or integrating AI? VALUWIT offers a free consultation to help you achieve your vision and future-proof your business.