A Guide For CEOs And Boards To Evaluate AI Investments
How companies can ensure they maintain a competitive edge while creating lasting and transformative value for all their stakeholders.
As AI revolutionizes industries worldwide, technology CEOs and boards face a defining moment. Federal AI spending has grown rapidly over the last few years, and the CHIPS Act injected $52.7 billion into semiconductor development, so the foundation for AI innovation in corporate America has never been stronger.
Yet the real work lies ahead: demonstrating AI’s transformative value to secure continued investment and ensure corporate America’s competitive edge in the global AI race.
The Stakes For CEOs And Boards
The numbers tell a compelling story. Federal AI R&D investment has surged to $1.8 billion in FY 2023, while the global AI market is projected to reach $190.61 billion by 2025.
Leading technology CEOs and boards are already capitalizing on this momentum. Microsoft and OpenAI are investing billions of dollars and building large-scale digital compute infrastructure to train the next generations of advanced language models. Google’s DeepMind has been working to improve weather forecasting accuracy while also enhancing its data models and large language models (LLMs).
To continue these trends and gain further federal investment, here are four critical priorities for CEOs and boards:
1. Demonstrate real-world impact for corporate America.
Success in navigating the AI landscape starts with understanding its value. For example, Google’s deployment of DeepMind AI in its data centers yielded a 40% reduction in energy used for cooling, demonstrating AI’s potential for significant operational efficiency gains in enterprise infrastructure.
By showing how these advancements will impact the country, companies can make a strong case for future investment.
2. Build corporate and ecosystem trust through radical transparency.
In an era of AI uncertainty, demonstrating trust and transparency will also be essential.
IBM set an early standard by publishing their AI Ethics Board proceedings and impact assessments for the last five years, while Salesforce created a transparent AI governance framework that can be adopted by other companies.
Rather than simply racing to deploy new capabilities, these companies are prioritizing responsible development through clear governance structures and regular impact assessments. Most importantly, they’re changing the narrative around AI-powered workforce transformation.
3. Foster strategic partnerships and a collaborative path.
The future of AI innovation depends on collaboration across the ecosystem. DeepMind’s partnership with Moorfields Eye Hospital NHS Foundation Trust, for instance, led to an AI system that can recommend the correct referral decision for over 50 eye diseases with 94% accuracy, matching world-leading eye experts.
These types of partnerships are creating powerful ecosystems that multiply the impact of AI investments and ensure that corporate advances in AI have multifaced and multifold benefits.
4. Invest in tomorrow’s corporate talent.
The AI skills gap is a major challenge, and companies must show they are solving it to continue to earn federal investment.
Several companies are already demonstrating how they can overcome this challenge. IBM’s AI Apprenticeship program, for instance, has created a new pathway for nontraditional tech workers to enter the field. Likewise, Microsoft’s AI for All initiative has partnered with community colleges to bring AI education to underserved communities.
On top of demonstrating the value of AI, these types of programs are setting up their companies for future innovation by building a robust pipeline of skilled talent.
CEOs And Boards: Making The Business Case For Continued AI Investment
Successful CEOs and boards are mastering the art of effective advocacy through strategic engagement.
When OpenAI CEO Sam Altman testified before Congress, he combined compelling demonstrations of AI capabilities with clear proposals for responsible oversight. The most effective CEOs and boards are taking a three-pronged approach to securing continued support:
1. They’re documenting success through detailed case studies and ROI analysis, using data and results to demonstrate AI’s impact on productivity, innovation and shareholder value creation.
2. They’re proactively addressing societal concerns by showcasing corporate innovation, actions and investments, explaining how AI can augment corporate capabilities while benefiting multiple stakeholders.
3. They’re building broad coalitions that span industry, academia and government, creating a unified voice for responsible AI advancement. Regular company roundtables, technology demonstrations and stakeholder forums have become essential tools in this effort.
CEOs and boards are learning to translate technical capabilities into tangible benefits that resonate with shareholders, employees, customers, partners, policymakers and the public. They’re also increasingly transparent about challenges and limitations, building credibility through candid dialogue about AI’s potential and risks.
The Path Forward For Long-Term Success
While the CHIPS Act and increased investments provide momentum, the future of AI innovation depends on CEOs and boards driving the next steps.
Long-term corporate success requires a delicate balance between pushing technological boundaries and ensuring fiscally responsible development. The most effective leaders are those who can navigate this complexity while building trust and delivering measurable value to both businesses and communities.
The AI revolution is no longer approaching — it’s here. The question facing CEOs and boards isn’t whether to invest in AI capabilities, but how to invest thoughtfully and responsibly.
Those who step up to this challenge today will shape the corporate innovation landscape for decades to come. By embracing transparency, fostering collaboration and demonstrating tangible shareholder and stakeholder impact, companies can ensure they maintain a competitive edge while creating lasting and transformative value for all their stakeholders.
This article was originally published in Forbes by Rahul Mewawalla. Rahul Mewawalla, a technology and business leader, is the CEO and President of Mawson Infrastructure Group (NASDAQ: MIGI), a publicly-traded digital infrastructure company in the artificial intelligence (AI), high-performance computing (HPC), and digital assets markets. He was previously at Yahoo, Nokia, and General Electric Company and has served as a business and technology leader across high-growth and transformative technology companies. He also served as Senior Advisor on Innovation to the San Francisco Mayor’s Office and Chair of the Venture Capital Task Force Committee on Services and Systems.