CEOs Boost AI Investments Despite Project Losses, Survey Finds

A recent survey conducted by the consultancy firm Teneo reveals that a significant majority of CEOs plan to increase their investments in artificial intelligence (AI) in 2026, despite many current projects failing to generate profit. Specifically, 68% of the 350 CEOs surveyed from public companies expressed their intention to allocate more funds towards AI initiatives. This optimism contrasts with findings showing that less than 50% of ongoing AI projects have successfully outperformed their costs.

The survey highlights that the most favorable outcomes from AI have been observed in the realms of customer service and marketing. In an unexpected twist, 67% of CEOs indicated that they anticipate AI will lead to an increase in entry-level positions within their companies, while 58% expect similar growth in senior leadership roles.

Expectations vs. Reality in AI Investments

In a parallel survey involving 400 institutional investors, Teneo found that 53% of respondents expect to see returns on their AI investments within six months. However, a striking 84% of CEOs from companies with revenues exceeding $10 billion believe it will take significantly longer to realize such returns. This disparity reflects the cautious outlook of larger firms towards the profitability of AI projects.

The survey also revealed that 80% of CEOs from smaller companies are optimistic about improvements in their AI investments in 2026, a slight decrease from 83% in the previous year. Additionally, 78% of CEOs foresee increased merger and acquisition (M&A) activity in 2026, although last year’s prediction of 83% for this year’s M&A growth has not fully materialized. According to data from Dealogic, M&A activity has risen by 40% this year, suggesting a growing trend in corporate consolidation.

The findings from these surveys illustrate a complex landscape for AI investment. While optimism prevails regarding future spending and job creation, the current profitability of AI projects remains a significant concern. As companies navigate this evolving technological landscape, the balance between investment and return will be crucial in shaping the future of AI in business.