A new survey by tech firm IBM (IBM) showed that many CEOs are investing heavily in AI out of fear of missing out, even though returns have often fallen short. According to the survey of 2,000 CEOs, only 25% of AI projects have met return on investment expectations, and just 16% have been scaled across entire companies. Furthermore, only about half of the executives surveyed said that they are seeing value from generative AI beyond simple cost-cutting. Despite these disappointing results, the pressure to keep up with competitors is leading to more investments in the technology.
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This trend is especially noticeable among major tech companies like Meta (META), Amazon (AMZN), and Google (GOOGL), which are ramping up their AI spending. IBM’s survey also found that executives expect AI investment rates to more than double in the next two years, with 61% already using AI agents in some form. Interestingly, 64% of CEOs admitted that fear of falling behind plays a major role in their decision to adopt new technology, even before they fully understand its business impact.
As a result, some are still concerned about how effective the technology is in practice. Indeed, although companies using AI alongside human workers are performing well, with 71% reporting success, not all AI experiments have gone smoothly. Instead, some studies have shown that AI can actually create extra work rather than simplifying tasks, and in certain cases, fully AI-driven teams have failed altogether. Despite this, the pressure to adopt AI remains strong across industries.
What Is the Target Price for IBM?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on eight Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $259.92 per share implies 1.7% upside potential.
