UK CIOs warn of unrealistic boardroom expectations around AI

A new report indicates that four in ten UK Chief Information Officers (CIOs) believe their boards hold unrealistic expectations for the business performance impact of new technologies such as artificial intelligence (AI).

Conducted by IDC and commissioned by Expereo, the survey questioned 650 technology leaders at global organisations across Europe, the US, and the Asia-Pacific region. The findings suggest that challenges to successful AI integration in UK businesses stem from poor IT infrastructure, employee resistance, and what many technology executives perceive as unreasonable demands from senior management.

The report highlights that 39% of UK technology leaders believe their boards hold unrealistic expectations regarding the influence of technologies like AI on business results. Additionally, 26% of UK technology executives stated that internal expectations for AI's capabilities are increasing at a rate faster than their ability to deliver.

Geopolitical risks were also cited as a factor, with 32% of UK technology leaders having reassessed their technology infrastructure due to these concerns. Furthermore, 33% said that current geopolitical disruptions are affecting their organisation's growth strategies.

Rising expectations for AI are evident, as 88% of UK business leaders believe AI will be important in achieving business priorities over the next year. While AI is predominantly seen as beneficial, 14% of UK businesses reported that AI implementations had fallen short of their expectations.

Technology leaders in the UK are generally positive about AI's potential, especially in customer-facing operations and cost management. According to the report, 64% expect AI to enhance customer-related activities, and 65% foresee a positive impact on business costs.

Ben Elms, Chief Executive Officer at Expereo, commented: "As global businesses embrace AI to transform employee and customer experience, setting realistic goals and aligning expectations will be critical to ensuring that AI delivers long-term value, rather than being viewed as a quick fix. While the potential of AI is immense, its successful integration requires careful planning. Technology leaders must recognise the need for robust networks and connectivity infrastructure to support AI at scale, while also ensuring consistent performance across these networks. We are at a pivotal moment where strategic investments in technology and IT infrastructure are necessary to meet both current and future demands."

The report identifies infrastructure readiness as a significant hurdle. Nearly half (47%) of UK organisations reported that their network or connectivity infrastructure is not yet ready to support new technologies such as AI. Furthermore, 49% said their network performance is currently inhibiting or restricting their networks from supporting large-scale data or AI initiatives.

Issues related to governance and ethical considerations persist, with 41% of respondents saying these concerns significantly hinder AI implementation within their organisations. Employee resistance—particularly related to job security—was flagged by 30% of UK businesses, while 32% mentioned the challenge of keeping up with the pace of technological change.

External partnerships have also been found lacking in some respects, as 29% of UK organisations reported that their external technology partners do not possess the necessary capabilities for AI implementation.

Despite these obstacles, the report notes an improving perception of the technology leader's role at senior levels. The focus on AI has raised the profile of technology leaders at board level, with 76% noting an increase, up from 60% recorded in 2024.