Operational Hurdles: The Challenges CMOs Face with AI, Insights from IBM

Artificial Intelligence (AI) is often touted as a solution to unleash a new era of marketing and at the same time is held up as a crucial driver of competitive differentiation in business, However, such is the enthusiasm for technology that there is a stark “execution gap” among global CMOs who realise the full potential of AI.

Conducted with 1800 marketing and sales executives, the research suggests that while 81% of CMOs see AI as a game-changer, 84% are held back by inflexible, dispersed operations that’s hindering their ability to get their heads around the technology.

The study highlights that more than half (54%) of the executives in the survey acknowledged they underestimated the operational challenges of AI implementation. That gap is especially problematic as CMOs’ role widen, with 64% now responsible for profitability and 58% for revenue growth.

One of the key operational challenges identified in IBM’s report is a significant absence of transparent AI decision-making rules, something just 22% of organizations say they have. What’s more, only 21% of CMOs feel they have the talent they need to meet their AI agenda for the future, indicating that marketing departments currently face a drastic skills shortage.

Cross-discipline cooperation is still a hurdle–only 24% of organizations do have technology platforms that enable effortless collaboration. This operational friction, the report argues, leads to significant missed revenue opportunities.

It’s a step change.” says Jonathan Adashek, Senior VP of IBM Marketing and Communications “The companies that will win the next decade are those that have AI infused throughout their operations.

For CMOs, this requires a willingness to acknowledge that the model of marketing we have today…is not providing the capabilities we need and is actually undermining our future.”

The results underscore that operational silos and disparate technology platforms are impeding growth. Success Rate Only 28% of companies say there is easy ownership and coherence of overall customer experience across touchpoints and that this directly yields better financial performance. The report indicates that perfect alignment between marketing, sales and operations would add a stunning 20% on top of an organization’s revenue.

Finally, recognising that the potential of AI is evident, for CMOs to see the promise of AI fully delivered they need to focus on: removing operational roadblocks staffing, and supporting strong cross-business synergies.