CEOs All-In On AI Investments

A new report from advisory firm Teneo has highlighted a significant trend among CEOs of large corporations: the commitment to invest heavily in artificial intelligence (AI) throughout 2026, despite many facing disappointing returns on their previous investments.

The survey, which encompassed responses from over 350 public company CEOs and was conducted between mid-October and mid-November, captured a landscape where 68% of the surveyed executives expressed plans to boost their AI spending. This optimism persists in light of findings indicating that less than half of AI projects have yielded meaningful financial returns.

Teneo’s findings underscore that while enthusiasm for AI is prevalent, the results have yet to match the investment hype. The report indicates that the majority of AI initiatives have failed to generate returns that exceed their initial costs, leading to a notable dissonance between spending and earnings.

Among the various departments leveraging AI, marketing and customer service have reported the most success. However, the report also notes that CEOs are encountering obstacles when integrating AI into higher-risk areas such as security, legal, and human resources. According to Paul Keary, CEO of Teneo, “AI innovation continues to be a top investment priority – 68% of CEOs are increasing investment, and 88% believe it is already helping them navigate disruption. But the clock is ticking, as investors start to demand real transformational change.”

Looking ahead, the sentiment remains largely optimistic, with 84% of large company CEOs anticipating that their AI investments will begin yielding returns within the next six months. Interestingly, over half of the institutional investors surveyed believe that these returns could arrive even sooner.

Furthermore, CEOs also foresee positive impacts on employment. Despite evidence suggesting that AI could be replacing some jobs, 67% of CEOs expect that AI will increase entry-level positions. Similarly, 58% believe that the advent of AI technologies will lead to a rise in senior leadership roles, showcasing the duality of concern and enthusiasm regarding AI’s impact on the workforce.