While generative AI adoption continues at pace, new research suggests the technology is leading to intense power struggles, friction between IT and business leaders, and creating a rebellious workforce.
Analysis from Writer paints a worrying picture of the effects of AI adoption on the C-suite, with around two-thirds of US execs claiming it’s led to heightened tension and division at their company.
Nearly half (42%) of respondents went so far as to say it’s tearing their company apart.
The same proportion of C-suite leaders said there's been tension between IT teams and areas of the business over AI adoption, with seven-in-ten saying that applications are being created in a silo within their organization.
Similarly, fears about AI or annoyance over the quality of AI tools mean 31% of employees — including 41% of Gen Z — admit to sabotaging their company’s AI strategy, for example by refusing to use AI tools or outputs.
More than a third are paying out-of-pocket for the generative AI tools they use, because their employer doesn’t provide the tools they want.
"The future belongs to the enterprises that can turn AI enthusiasm into business reinvention," said May Habib, CEO and co-founder of Writer.
"Generative AI holds transformative potential, but it’s also creating deep rifts within companies that are relying on a patchwork of point solutions or developing internal apps in a silo."
Generative AI adoption costs are surging
The costs associated with the technology are also creating significant tension among enterprise leaders, the study found. Nearly three-quarters of companies are investing at least $1 million each year in generative AI, but only a third said they'd seen significant ROI.
More than one-third of executives said that generative AI has been a massive disappointment, while a whopping 94% said they’re not satisfied with the vendors they use, noting a variety of ways in which vendors could be providing more support.
Those that are happy with their AI adoption journey tend to be those which are spending more, with a 40 percentage-point gap between companies who invest the most and those who invest the least.
Implementing a clear organization-wide approach seems to make the most difference in terms of success, researchers found. At companies that don't have a formal AI strategy, just 37% of executives say they’ve been very successful at adopting and implementing AI, compared with 80% at companies that do have a strategy.
RELATED WEBINAR
"The companies who will lead in the next era of AI adoption are the ones putting the right processes and systems in place today,” said Dan Schawbel, managing partner at Workplace Intelligence, which conducted the survey.
"They’re prioritizing their change management efforts, cultivating support for AI among their people, and ensuring they’re making the right investment in AI tools. Above all, they’re carefully assessing AI vendors, recognizing that the right vendor is key to unlocking the full potential of AI within their business."
MORE FROM ITPRO
-
What does modern security success look like for financial services?Sponsored As financial institutions grapple with evolving cyber threats, intensifying regulations, and the limitations of ageing IT infrastructure, the need for a resilient and forward-thinking security strategy has never been greater
-
Yes, legal AI. But what can you actually do with it? Let’s take a look…Sponsored Legal AI is a knowledge multiplier that can accelerate research, sharpen insights, and organize information, provided legal teams have confidence in its transparent and auditable application
-
Microsoft’s huge AI spending still has investors sweating despite solid cloud growthNews Capital spending at Microsoft continues to surge, despite previous claims it would cool down
-
Analysts warn AI layoffs could spark a new wave of offshoring – enterprises are rehiring after workforce cuts, but either outsourcing or at lower rates of payNews Analysts expect a wave of rehiring next year in the wake of AI layoffs. That may sound like good news for workers, but it'll probably involve offshoring or outsourcing.
-
UK firms are pouring money into AI, but they won’t see a return on investment unless they address these key issuesNews An SAP report projects increased AI investment, but cautions that too many organizations are taking a fragmented approach
-
Employee ‘task crafting' could be the key to getting the most out of AINews Tweaking roles to make the most of AI makes you more engaged at work
-
Salesforce could become the king of enterprise AI – but only if customers believe in its potentialAnalysis At Dreamforce 2025, Salesforce painted a believable picture for enterprise AI, but shareholders will only be reassured by greater business buy-in
-
OpenAI has a bold plan to pay for its $1 trillion spending spree: Ads, personal assistants, and cheaper subscriptionsNews OpenAI has lined up more than $1 trillion in spending – and now it's trying to figure out how to pay for it all.
-
AI is redefining roles in the tech industry and forcing Gen Z workers to reassess career pathsNews Gen Z workers remain cautious about AI while industry turbulence is changing their outlook on company loyalty
-
"Do not sacrifice your entry-level jobs": Salesforce might be all in on AI, but it isn't giving up on junior workers yet – despite Marc Benioff's job replacement claimsNews Salesforce is still committed to hiring junior team members even as AI automates roles, according to UK&I chief executive Zahra Bahrololoumi.
