While revenue, profit, and customer relationships remain the fundamental measures of success, C-Suite leaders are rapidly evolving their strategies to embrace digital transformation and AI as key drivers of future growth
Executives in corporate C-Suites displayed an overwhelming consensus that places AI at the forefront of executive priorities, followed by concerns about exploding data volumes and skilled labor shortages, according to a new survey report.
The 2025 C-Suite Survey, released by the Thomson Reuters Institute, explores the top priorities business leaders have set for their enterprises, as well as some of the challenges businesses are experiencing moving toward those goals. The survey of 200 C-Suite executives across eight countries reveals that a large majority (85%) said they believe that AI will have a transformational or high impact on their businesses over the next five years.
Indeed, the report shows that digital transformation (with 82% of respondents ranking it as a high priority), improving operational efficiency (64%), and implementing AI (62%) have surpassed traditional priorities like revenue growth and cost reduction in the short-term for many business leaders. This shift reflects the perceived urgency of adapting to technological change rather than diminishing the importance of traditional business objectives.
Progress and challenges in digital transformation
The survey indicates that organizations have made substantial progress in digital transformation efforts, with more than half of C-Suite respondents reporting that a clear digital strategy is in place. And this number is expected to rise to more than 80% within the next 18 months. Currently, only 3% of respondents said their organizations have achieved a fully integrated, agile digital ecosystem, although 12% said they expect to reach this state within the next 18 months.
Cloud computing and generative AI (GenAI) also emerge as the leading technologies driving this transformation. Despite their enthusiasm, however, most executives expressed a preference to wait until other organizations have successfully implemented AI technologies before adopting them themselves.
Delving deeper, the report identifies several key challenges that currently hinder the effectiveness of enabling functions within organizations, including i) ineffective data and information flows between different departments; ii) time-consuming compliance and reporting tasks; iii) staffing and resourcing challenges; and iv) poor data quality and structure.
These barriers may help explain why many corporate functions, including in-house legal departments, are not seen as significantly contributing to the overall business objectives of the organization. Indeed, nearly twice as many C-Suite leaders said their legal function contributes only a little compared to those who said it contributes significantly.
The AI adoption gap
Perhaps most revealing is the disconnect between executive perception and organizational reality regarding AI implementation. While 82% of C-Suite leaders claimed their organizations are using AI solutions in workflows, only 34% said they’ve equipped employees with AI tools. This aligns with findings from the 2025 Generative AI in Professional Services report, which found that just 12% of professionals said they are using GenAI tools in their work.
Similarly, about 80% of C-Suite executives said their organizations provide AI training several times a year, yet most professionals reported receiving no training at all. This gap suggests that despite executive enthusiasm and investment, the practical implementation of AI remains limited in many organizations.
Further, this is keeping many organizations from reaping the benefits of better AI implementation. Organizations that have successfully implemented AI report improved efficiency (78%), better response times (56%), and enhanced decision-making through advanced analytics (55%). Additionally, 43% of respondents said AI has freed up staff time for more complex and strategic work.
While C-Suite leaders are clearly optimistic about the transformative potential of digital technologies, significant work remains to bridge the gap between executive vision and organizational reality. To fully realize the benefits of digital transformation, leaders must address adoption challenges and ensure critical technologies are accessible to those who can benefit from them the most.
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