Why business units and not IT departments are leading enterprise AI transformation

The rapid adoption of generative AI (GenAI) across major firms is creating new leadership opportunities throughout organizations, with implementation increasingly driven by business unit leaders rather than traditional IT departments.

Key survey findings: Recent data from over 125 major firms reveals significant increases in GenAI investments and implementation.

• 98% of firms plan to increase GenAI investments in 2025, up from 82% last year
• 91% consider data and AI investments a top priority
• Production deployment of GenAI systems has grown from 5% to 24% of firms

Core drivers of distributed leadership: Five fundamental factors explain why GenAI initiatives are increasingly led by business units rather than centralized IT departments.

• GenAI’s WINS capabilities (Words, Images, Numbers, Sounds) can enhance various organizational functions, from marketing to HR
• Function-specific training requirements are better managed within business units
• Growth and innovation initiatives typically originate from business units, not IT
• Specialized GenAI models are emerging for specific industries and functions
• Ambitious executives see GenAI transformation as a path to career advancement

Technology function’s evolving role: IT departments and Chief Data Officers (CDOs) face new challenges in supporting distributed GenAI implementation.

• CIOs must develop stronger capabilities in evaluating emerging vendors and trends
• CDOs need to shift from traditional data management to enabling access to diverse data types
• Technology leaders must balance control with enabling business unit innovation

Implementation considerations: Organizations face important strategic choices in how they approach GenAI adoption.

• Early adoption provides competitive advantages through organizational learning
• Unstructured data, comprising 90% of most firms’ information, requires time to properly harness
• Progressive improvement in model quality comes through sustained use and refinement

Strategic implications: The shift toward business-unit-led GenAI implementation represents a fundamental change in how organizations approach technology transformation.

• Success requires balancing centralized expertise with distributed authority
• Technology leaders must evolve from controlling to enabling innovation
• Organizations need to develop new models for training and capability building

Looking ahead: The expanding role of business unit leaders in driving GenAI transformation suggests a future where technology innovation becomes increasingly integrated into core business operations rather than remaining solely within IT’s domain. This shift will likely accelerate as specialized models and tools become more readily available to non-technical users.