CEOs are delegating AI before understanding it

When it comes to companies and AI, the themes have been consistent. Investments and adoption are rising, but value is not materializing in the P&L. About 88% of companies have adopted AI somewhere in the business, according to Stanford’s 2026 AI Index, showing that adoption is strong. Yet, a recent PwC CEO study found that 56% of CEOs had seen neither revenue growth nor cost reduction from AI, and only 12% have seen both. At the same time, IDC estimates enterprises will spend $409 billion on AI platforms, applications, and services this year. That is a lot of investment for a technology that most companies are struggling to translate into meaningful value. Why, after several years of investment and attention, are so many companies still not getting value from AI? CEOS DO NOT UNDERSTAND AI So far this year, I’ve spoken with roughly 50 CEOs, board members, and business unit leaders from across industries and geographies, at companies ranging from the mid-market to the Fortune 50. From these discussions, two points stand out. First, CEOs know AI matters. Clearly, awareness is not the problem. Second, many still do not understand it well enough to form their own view of what it could …