AI and the C-Suite: Implications for CEO Strategy in 2026

The Conference Board’s 2026 C-Suite Outlook Survey reveals that artificial intelligence (AI) has moved rapidly from the margins of corporate strategy to the center of executive decision-making. Executives see the potential for AI to be a core driver of competitiveness and organizational change, but are also grappling with how to deploy it at scale, measure its value, and manage risks.

• AI is no longer experimental—it’s core to competitive strategy. Both US and global executives rate AI and technology investments as key priorities, often ahead of investments such as product and service innovation or enhanced customer experience.
• Significant divergences exist across boards and different C-suite roles regarding AI’s purpose and priorities—especially on ROI measurement, investment focus, and workforce readiness. CEOs will need to bridge these gaps to ensure cohesive investment decisions and avoid internal friction that could slow execution.
• Executives across industries are focused on investing in AI, but respondents in “knowledge industries” such as financial services, software, communications, and professional services are more likely than those in other sectors—such as manufacturing, healthcare, or construction to see AI as a potentially negative business factor in 2026.
• The survey shows that AI investment momentum is not confined to traditionally tech-intensive sectors, which may require CEOs to look beyond their typical peers and competitive set to benchmark AI adoption.

Background

Investments in artificial intelligence (AI) continue to be a major focus for firms, with as much as $500 billion expected to be spent on AI in 2026.¹ Indeed, nearly 43% of respondents to The Conference Board’s 2026 C-Suite Outlook Survey named AI and technology as an investment priority for 2026, outpacing any other priority, including product and service innovation or enhanced customer experience. However, executives are also focused on measuring the return on those investments. Nearly 41% of executives—including 33% of CEOs—noted ROI measurement is their top AI priority for 2026, ahead of enhancing AI expertise (32%).

These results reflect a shift in how executives are thinking about AI, moving from open experimentation toward scaling, integration, and demonstrating measurable returns.   

Key Themes

The survey results point to several interconnected themes that shape how CEOs are approaching AI in 2026. AI is influencing decision-making across strategy, operations, risk management, and workforce planning, while important variations exist by region and industry. Understanding these patterns can help CEOs assess where their organizations align with peers or where differences in priorities or constraints may require closer attention.

CEOs Remain Focused on AI

AI remains a central concern for CEOs. Thirty percent of global CEOs (and 38% for the US) identify AI as the leading societal, demographic, or technological factor that could negatively affect their businesses in 2026—ranking it above political polarization and shifts in consumer buying behavior.

CEOs (34%) are also prioritizing the expansion of AI and digital technologies in supply chains, more than any other supply chain consideration. Beyond operations, AI features prominently in risk management and workforce planning: CEOs list evolving AI regulation and governance among their top governance concerns and identify the impact of automation, including AI, as a key human capital issue.

Workforce Readiness as a Binding Constraint

The survey also highlights the central role of people and organizational culture in adopting and successfully leveraging AI. Thirty one percent of CEOs identified enhancing AI expertise as a top AI priority and 27% emphasize improving the culture of the workforce to adopt AI, lagging only measuring AI ROI. CEOs also see the impact of automation (including AI) and the adoption of new technologies as a major human capital challenge.

For CEOs, this underscores the growing interdependence between AI strategy and workforce strategy. Investments in AI that are not matched by investments in training, communication, and organizational redesign risk underperforming or exacerbating internal resistance.

Regional Differences in AI Investment and Competitive Dynamics

The survey reveals meaningful regional variation in how executives prioritize AI investment. AI and technology are the top investment priorities for CEOs in Europe, Asia (excluding Japan), and Chile/Argentina. However, in North America product and service innovation is a top priority for 42% of CEOs, compared to 40% for AI and technology. In Japan, AI and technology lag talent and product and service innovation as top investment priorities.

There are also regional differences in executives’ AI priorities. Measuring ROI is a top AI priority for 48% of North American CEOs. Conversely, enhancing AI expertise and leveraging AI tools were the most common priorities for European CEOs. US CEOs also most commonly (38%) identified AI as an external factor that could negatively impact their business in 2026, more than any other factor including political polarization (31%) and trust in government (25%). Conversely, CEOs in Asia are more concerned about shifting consumer buying behaviors (31%) and political polarization (25%). These findings underscore that AI strategy is shaped by regional contexts rather than a single global playbook. As a result, CEOs with global operations will need to calibrate AI investments, timelines, and risk management approaches to regional conditions rather than assuming firm-wide approaches.

Differences Across Industries

While the survey does not suggest any industry is ignoring AI, it does reveal several interesting cross-industry patterns that may require the attention of CEOs, particularly those benchmarking against peers or competitors. The data suggest that AI enthusiasm is not limited to traditional “tech intensive” sectors such as software, business and professional services, and financial services. Instead, AI investments are a priority across manufacturing sectors, generally trailing only product and service innovation.

Respondents in “knowledge industry” sectors—such as financial services, software, communications, and professional services—are more likely than those in sectors such as manufacturing, healthcare, or construction to see AI as a potentially negative business factor in 2026. Knowledge sectors are also more concerned about automation (including AI) as a human capital challenge than those in other sectors.

There are also indications that executives see high potential for the use of AI and digital technology. For example, logistics executives (37%) identify expanding AI as a top supply chain priority, more than any other priority. Similarly, more marketing executives (40%) selected AI applications as a marketing priority than any other option, including increasing revenue (36%) or brand building (30%). Similarly, AI applications in communications lagged only corporate strategy as a priority for communications and media executives.

Key Issues Requiring CEOs’ Attention

The survey findings point to a set of leadership and governance challenges that extend beyond individual AI investments or use cases. As AI becomes more deeply embedded across functions, regions, and industries, differences in priorities and risk perceptions within organizations are becoming more pronounced. The issues outlined below highlight areas where misalignment—between boards and management, across the C-suite, or between strategy and execution—could slow progress or increase risk. For CEOs, addressing these challenges will be critical to ensuring that AI investments are both effective and sustainable.

Diverging C-Suite and Board Views on AI

While there is broad agreement on AI’s importance, the survey reveals notable differences within the C-suite and Boards regarding priorities and perceived challenges. Taken together, they highlight potential internal tensions that CEOs will need to manage. For example, about 98% of Board members identified measuring the ROI of AI investments as a priority, compared to just 33% of CEOs. This may reflect a growing view among Boards of AI as a capital allocation issue requiring rigorous oversight, while many CEOs may still be approaching AI as a strategic or exploratory opportunity. If CEOs do not proactively align AI initiatives with clear metrics and reporting frameworks, they may face increasing scrutiny or skepticism as AI spending continues to rise.

CEOs should also be aware of differences among their teams about AI as an investment priority. While a significant share of CFOs (38%) view AI and technology as investment priorities, a larger share (45%) see product and service innovation as investment priorities. Conversely, larger shares of COOs/CSOs and technology executives see AI as an investment priority (59% and 54% respectively), compared to product and service innovation (37% and 40% respectively). These differences reflect strategic choices about how to allocate limited resources, requiring CEOs to play an active role in aligning teams around a shared AI investment thesis and ensuring that capital allocation, metrics, and timelines are consistent with that strategy.

The survey results also highlight potential differences between functional areas of the C-Suite (e.g., marketing, human resources) and technology leaders. For example, 30% of technology leaders identified digital or AI implementation as a human capital priority, compared to 22% of CHROs. Similarly, 39% of technology leaders viewed applying AI to marketing as a priority compared to 28% of CMOs. These gaps suggest that technology leaders may be more inclined to push AI adoption into domains than functional leaders are comfortable with, reflecting different assessments of readiness, risk, and AI capabilities. CEOs will need to ensure cross-functional alignment and that decisions about pace and scope of AI implementation are made with broad participation accountability rather than in silos.

AI Is Not Just a Technology Issue

The fact that CEOs identify AI simultaneously as a top investment priority, a leading external risk, and a governance concern suggests that AI is cutting across traditional risk silos. AI-related risks now span regulatory compliance, operational resilience, workforce disruption, and reputational exposure. Interest in AI applications also cuts across the C-Suite, emphasizing that CEOs must take an integrated approach to oversight and decision-making. Rather than treating AI as a discrete technology initiative, CEOs will need to ensure that strategy, risk management, governance, and workforce planning are aligned and coordinated across the organization. This will likely require revisiting existing governance structures, clarifying ownership and accountability for AI-related decisions, and ensuring that AI risks and opportunities are assessed holistically rather than within functional silos.

AI Moving Beyond Tech Sectors

The survey shows that AI investment momentum is not confined to traditionally tech-intensive sectors. Manufacturing, logistics, and asset-heavy industries are increasingly prioritizing AI, often just behind product and service innovation. As a result, CEOs outside of tech firms should look beyond tech firms and also examine their traditional peers for insights into how to leverage AI, including to improve efficiency, forecasting, or supply chain performance rather than customer-facing innovation.

Workforce Impacts May Materialize Faster Than Firms Are Prepared For

Although CEOs recognize workforce readiness as a binding constraint, the survey suggests that concern about automation and AI’s workforce impacts is more pronounced in certain industries and functions than others. Knowledge-intensive sectors and technology leaders are more attuned to these risks than some operational or manufacturing-oriented peers. This uneven awareness raises the possibility that workforce disruption could leave leaders in some sectors unprepared. CEOs will need to ensure that workforce planning, reskilling, and change management efforts keep pace with AI deployment, particularly in roles and functions where disruption may not yet be fully anticipated.

Conclusion

The survey results make clear that AI has entered a new phase in corporate decision-making. For most firms, the question is no longer whether to invest in AI, but how to deploy it in ways that deliver measurable value while managing growing operational, workforce, and governance risks. CEOs are thus navigating an environment in which AI is simultaneously a growth opportunity, a source of competitive pressure, and a potential business risk—one that cuts across traditional organizational boundaries.

CEOs will need to play an active role in aligning priorities, clarifying objectives, and ensuring that AI investments are supported by appropriate metrics, governance structures, and workforce strategies. Firms that treat AI as an enterprise-wide transformation—integrating strategy, operations, risk management, and human capital planning—are likely to be better positioned to capture its benefits. As AI spending accelerates and competitive dynamics evolve, CEO leadership will be critical to ensuring that AI strengthens organizational resilience, supports long-term growth, and enhances trust among stakeholders rather than creating new sources of risk or misalignment.