SAP: Why Executives are Starting to Favour AI Over Humans – Technology Magazine
AI has evolved from an experimental technology to a trusted advisor in corporate boardrooms across the globe – but what does this mean for people?
The integration of AI into high-level decision-making has altered how businesses operate, influencing strategic choices that were once solely the domain of human executives.
AI systems now offer capabilities that extend beyond human limitations, providing insights drawn from complex datasets that would take teams of analysts significantly longer to interpret.
Investigating this relationship between AI and executives, SAP’s research reveals just how deeply AI has penetrated the highest levels of corporate decision-making, with many executives now willing to defer to machine intelligence over their own judgment.
The “AI Has a Seat in the C-Suite” survey, conducted by Wakefield Research and commissioned by SAP, questioned 300 C-level executives at US companies with annual revenue exceeding US$1bn – highlighting the growing influence of Gen AI in high-level corporate decision-making.
According to SAP, nearly half of senior executives would change their planned decisions based on AI recommendations, according to the research.
“AI is part of that trusted inner circle.”
It found that 44% of C-suite executives would override their own decisions after receiving AI insights and a further 38% would allow AI to make business decisions on their behalf.
SAP also found that 74% of executives place more confidence in AI for advice than in family and friends – and this shift towards algorithmic decision-making is particularly evident in larger corporations.
In companies with revenue of US$5bn or more, 55% of executives report that AI-driven insights have replaced or frequently bypass traditional decision-making processes.
Almost half (48%) of surveyed executives also use Gen AI tools daily, with 15% engaging with the technology multiple times per day.
“Most executive decisions are based on a combination of the data, how they feel and discussions they’ve had with people they trust,” says Jared Coyle, Chief AI Officer for SAP North America.
“What this data tells us is that AI is part of that trusted inner circle.”
The survey shows that executives trust AI most for data analysis and decision-making recommendations, with 52% citing this as a primary application.
They additionally value AI's ability to identify previously unconsidered risks (48%) and offer alternative plans (47%).
Beyond these functions, executives are employing AI to enhance product development (40%), support budget planning (40%) and conduct market research (40%).
The benefits of AI extend into executives' personal lives, with 39% reporting improved work-life balance, 38% noting better mental wellbeing and 31% experiencing reduced stress.
However, despite these advantages, many organisations face challenges in establishing the reliable data foundation necessary for AI implementation, including:
Jared points to the importance of unified data management for effective AI deployment: “The only way to ensure reliable business data for AI is to have one common semantical data layer for your business,” he says.
To address these challenges, SAP has developed the Business Data Cloud solution, a software-as-a-service data management system that unifies SAP and third-party data throughout an organisation.
This solution aims to connect data from different parts of a business and harmonise it more efficiently, enabling customers to make faster, more impactful decisions and power reliable AI applications.
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