A new report from Emergn finds that while most U.S. business leaders are banking on AI for revenue growth, a significant majority admit their ability to execute is falling behind their strategic goals, creating a significant talent and execution gap.
A new study suggests a growing disconnect between the strategic ambitions for artificial intelligence in corporate America and the practical ability of organizations to deliver on them. According to a report by the consulting firm Emergn, while 75% of U.S. business leaders plan to generate new revenue from AI solutions within the next year, 60% acknowledge that expectations for the technology are expanding faster than their company’s capacity to meet them.
This optimism is largely fueled by recent successes. The study, titled "The Intelligent Delusion," found that 82% of U.S. organizations reported a positive return on investment from their AI initiatives over the past year. These returns appear to be encouraging leaders to pursue more ambitious, revenue-focused AI projects.
However, this ambition is running into a wall of organizational and talent-related challenges. The report indicates that the human element is a primary constraint. Nearly 55% of business leaders stated they will be unable to achieve their AI objectives without acquiring or developing talent skilled in problem framing, outcome-focused design and market integration.
"Many companies view AI as a catalyst for revenue and growth, yet the real challenge lies not in adopting advanced technologies, but in bridging the gaps of talent, skills and organizational capability," said Alex Adamopoulos, Chairman and CEO of Emergn. "The intelligent delusion is the belief that adopting advanced technologies is itself a sign of advancement."
In response to this execution gap, the study reveals that companies are making significant investments in product management. In the last 12 months, 85% of U.S. business leaders reported increasing their investment in product management roles, tools and processes. Furthermore, 66% of leaders now believe product management will be critical to their company’s strategy in the coming year, a sharp increase from 27% who held the same view the year prior.
This strategic shift is also reflected in the C-suite. The report notes that 41% of U.S. organizations have appointed a Chief Product Officer (CPO) in the past 12 months, up from 31% the previous year. This trend suggests that companies are looking to embed product-led discipline at the highest level of leadership to guide the complex integration of emerging technologies like AI. For many organizations, the role of the CPO is becoming central to translating AI's potential into practical, revenue-generating applications.
The 2025 Intelligent Delusion Study was conducted by Censuswide on behalf of Emergn, surveying 751 leaders at global organizations with 1,000 or more employees and annual revenues of at least $500 million.
SOURCE: Emergn:
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