Artificial intelligence has become the number one strategic priority for chief executives worldwide as companies rethink their competitive strategies amid geopolitical and technological shifts, according to a new study by international management consultancy Horváth.
The study found that companies are accelerating investments in AI, but the success of these initiatives depends less on selecting the right technology and increasingly on building a strong data foundation and integrating AI across the entire organization.
AI tops CEOs’ strategic agenda
According to the survey, AI is the leading strategic priority for business leaders over the coming years. In the services sector, the share of investment allocated to AI is expected to increase by 2.3 percentage points between 2025 and 2027, while manufacturing companies are projected to raise AI investments by 0.3 percentage points over the same period.
The findings suggest that AI is moving beyond the experimental phase to become a core component of corporate growth strategies.
Horváth said the shift is being driven by profound changes in the business environment. Executives cite geopolitical tensions, the restructuring of global supply chains, and the need to reduce external dependencies as key factors forcing companies to rethink their competitive advantages. At the same time, rapid advances in AI are fundamentally changing how businesses create value and operate.
After AI and digital transformation, the top strategic priorities identified by executives are:
- Improving cost structures and profitability;
- Cybersecurity;
- Organizational and process redesign;
- Human capital; and
- Innovation and research and development.
Data, not AI, is the main obstacle
Despite growing investment appetite, the study concludes that large-scale AI deployment is being held back by challenges that go beyond technology selection.
Respondents identified poor data quality, fragmented information across multiple systems, integration difficulties, inadequate data governance, and a shortage of AI-related skills as the main barriers to successful implementation.
Without a robust data foundation and a clear AI strategy, many AI initiatives remain confined to pilot projects or deliver only limited business value, the report said.
Horváth concludes that future competitive advantage will belong not to companies investing the most in AI, but to those capable of turning data into a strategic asset and building the infrastructure needed to support enterprise-wide AI adoption.
AI reshapes digital transformation strategies
Beyond AI investments, CEOs continue to prioritize process digitalization, cost optimization, workforce development, and organizational resilience. Increasingly, companies view these initiatives as part of an integrated transformation strategy in which AI, data, and process modernization must evolve simultaneously to deliver measurable business outcomes.
“More and more companies are willing to invest in artificial intelligence, but the success of these investments depends on the quality of their data and the organization’s ability to integrate it consistently,” said Maria Boldor, Partner and Managing Director of Horváth Romania.
“Artificial intelligence can create value only when it is built on a solid foundation of data, processes, and governance. Otherwise, even the most advanced technologies risk remaining mere experiments with little real impact on business performance,” she added.