CIOs are expected to increasingly invest in AI technologies, with global spending projected to grow from $337 billion in 2025 to $749 billion by 2028, according to IDC. This surge is driven by the deployment of generative AI in various sectors. For instance, Dairyland Power Cooperative uses AI for document summarization and storm management, while Marsh McLennan employs it across 40 applications to enhance efficiency and profit. JP Morgan Chase is integrating AI into its various services, with CIO Gill Haus confident about its transformative benefits. IDC reports that by 2025, 67% of AI investments will support core business operations. Many companies are opting for cloud-based AI solutions, facilitated by major providers like Amazon, Microsoft, and Google, to minimize risks while harnessing AI's potential. This symbiotic relationship between AI and cloud computing is nurturing new business models and boosting productivity.

A significant number of enterprises (53%) will adapt pretrained AI models with their data, while only 13% will develop models from scratch. Organizations are focusing on automation and productivity with AI without drastically altering business processes, although future applications will demand organizational change. Some, like Marsh McLennan, are aggressively leveraging AI to automate internal processes and enhance efficiency, emphasizing sound foundations and governance. Beswick of Marsh McLennan highlights the cost-effectiveness of AI when managed correctly, with significant time savings and tailored language models for specific needs. Governance and risk management are critical as CIOs establish internal AI committees and frameworks. Chase's Haus underscores the long-term benefits of addressing AI challenges like hallucinations. Meanwhile, Dairyland Power’s Melby emphasizes aligning AI investments with organizational risk tolerance to maximize benefits while implementing robust governance structures.