67% CIOs and CTOs held accountable for AI systems they don’t fully control: IBM

As artificial intelligence shifts from pilot projects to enterprise-wide deployment, technology leaders are facing a growing accountability challenge. A new study from the IBM Institute for Business Value has found that 67% of CIOs and CTOs are being held responsible for AI systems they do not fully control, exposing widening gaps in governance, visibility and oversight.

The research, conducted in partnership with Oxford Economics, surveyed 2,000 senior technology executives across 33 countries and 19 industries. The findings suggest that while organisations are rapidly expanding AI adoption, governance structures and operational controls are struggling to keep pace.

The study arrives as enterprises increase investments in AI agents, automation platforms and autonomous systems that can operate continuously across business functions.

Technology leaders face a growing visibility gap

According to the IBM study, lack of visibility into AI deployments has become a widespread concern.

Key findings include:

• 67% of surveyed CIOs and CTOs said they are accountable for AI systems they do not fully control

• 70% reported that teams across their organisations are deploying technology faster than IT departments can effectively track

• 77% said AI adoption is already outpacing existing governance capabilities

The findings indicate that many organisations are scaling AI faster than they are building the frameworks needed to manage risk, compliance and operational oversight.

According to Matt Lyteson, Chief Information Officer at IBM, organisations are increasingly operating AI systems within governance models originally designed for slower and more predictable technology environments.

AI ambitions outpace organisational readiness

The study also revealed a significant gap between executive ambitions and operational preparedness.

While AI has become a strategic priority for senior leadership, many technology teams do not believe they are fully prepared for the next phase of deployment.

Survey results showed:

• 80% of respondents are working under CEO-driven AI transformation mandates

• Technology executives expect the number of AI agents deployed within their organisations to increase by 38% by 2027

• Only 11% believe their organisations are fully prepared for the scale of AI agent deployment expected within the next year

The figures suggest that many enterprises are moving aggressively to expand AI capabilities despite concerns around readiness and governance maturity.

Security and compliance risks intensify

As AI systems become more autonomous, technology leaders are also reporting growing operational and security challenges.

The IBM study found:

• 59% cited security and compliance concerns as the primary barriers to scaling AI agents

• Organisations experienced an average of 54 AI-related incidents during the previous year that required human intervention or correction

• 17% of reported incidents were classified as high severity and required more than four hours to contain

Among high-severity incidents:

• 37% resulted in data exposure or security breaches

• 33% caused cascading system failures

• 17% triggered compliance-related issues

IBM's analysis found that organisations embedding governance and control mechanisms directly into AI systems experienced 25% fewer incidents than those relying primarily on manual governance processes.

AI spending surges while financial oversight lags

The research also highlights a growing challenge around AI investment management.

According to the study, AI expenditure is expected to rise sharply over the next two years. Key financial findings include:

• AI spending is projected to increase from just under 15% of IT budgets in 2025 to nearly 25% by 2027

• This represents a 71% increase in AI's share of technology budgets over two years

• 84% of technology executives have not fully operationalised AI financial management practices

• 85% lack full visibility into real-time AI spending

As investment levels rise, the absence of comprehensive financial controls could create additional pressure on CIOs and CTOs tasked with delivering measurable returns from AI initiatives.

Control-driven organisations outperform peers

IBM's analysis suggests that organisations embedding governance, financial discipline and adaptability into AI deployments are achieving stronger outcomes.

The study found that organisations that build control directly into AI systems:

• Deploy 16 times more AI agents than organisations relying on manual governance

• Deliver 18% higher operating margins

• Spend four times less of their AI budget

Meanwhile, organisations with strong financial discipline:

• Deploy 2.4 times more AI agents without increasing AI or IT budgets

• Are three times more likely to report being fully prepared for AI scale

The research also found that organisations that prioritised adaptable architectures and avoided rigid technology dependencies achieved a 10% higher return on AI investment in 2025.

Governance emerges as the next AI battleground

The findings reflect a broader shift in enterprise AI strategy. For many organisations, the challenge is no longer whether to adopt AI, but how to govern increasingly autonomous systems while maintaining visibility, accountability and financial control.

As AI agents become more deeply embedded across business operations, CIOs and CTOs are likely to face increasing scrutiny over systems that extend beyond traditional technology management models. The IBM study suggests that organisations capable of integrating governance, security and financial discipline into AI deployments from the outset will be better positioned to scale effectively while managing the operational risks that accompany rapid adoption.