In a survey I conducted with 29 CEOs from mid-market companies, nearly 90% said their organizations had begun exploring or implementing AI—yet the average self-reported understanding of AI capabilities was just 5.1 out of 10.

That gap between adoption and understanding reveals the paradox I see most often: leaders know AI is essential, but many remain unsure how to operationalize it.

The State of AI Adoption

From the survey results, four groups emerged:

• 41% are in early exploration

• 31% are piloting or experimenting

• 17% have integrated AI into some processes

• 11% have not yet started

Even in companies that reported integration, AI remains largely tactical. ChatGPT dominates as the tool of choice, while other frontier models and specialized applications are rarely explored.

Emerging Use Cases

When asked where AI is adding value, CEOs highlighted three clusters:

• Content & Communication: marketing content, customer correspondence, multilingual adaptation, documentation.

• Operational Enhancement: contract analysis, scheduling, data insights, process automation.

• Strategic Support: qualitative data analysis, planning, training, sales optimization.

The pattern is clear: AI is showing up at the edges of the business, but not yet embedded as a driver of strategy.

Core Implementation Challenges

Three barriers came up again and again:

• Data privacy and security (70%)

• Lack of understanding of AI’s potential (62%)

• Limited technical expertise (59%)

These are organizational challenges, not purely technical ones. Only a handful of CEOs reported having formal AI governance in place.

Most Pressing Needs

When I asked about what they needed most, three themes stood out:

• Training and Education: literacy to identify real use cases.

• Strategy Development: policies, roadmaps, and tool standards set at the board level.

• Resource Allocation: dedicated time and personnel, not just ad hoc exploration.

The Reality of AI Transformation

The survey reinforced what I’ve seen in client work: the differentiator won’t be who adopted AI first, but who adopted it most thoughtfully.

Effective AI adoption isn’t about piling up tools. It’s about governance, education, and alignment with business objectives. As one CEO told me, success requires “a consolidated corporate approach vs individuals going at it.” Another noted the biggest opportunity is to “free up time to spend on high-value things.”

That is the heart of AI transformation. It’s not about replacing human work but elevating it. Organizations that begin with strategy and governance—and only then scale use cases—will be the ones to turn curiosity into durable competitive advantage.