Many Chief Marketing Officers (CMOs) are excited about artificial intelligence, but putting it to work effectively is proving harder than expected. Indeed, an IBM (IBM) Institute for Business Value study of 1,800 marketing and sales executives found that 81% of CMOs see AI as a game-changer, yet 84% say rigid, fragmented operations stop them from using it to its full potential. Jonathan Adashek, tech giant IBM’s Senior Vice President of Marketing and Communications, explained that many companies don’t have the structure needed to make AI truly transformative. On top of that, only 21% of CMOs believe they have the right talent to meet their goals over the next few years.
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As a result, IBM has been addressing these challenges through its “client zero” approach, which means testing AI tools on its own operations before offering them to clients. In human resources, this approach has automated one million tasks and resolved 95% of employee requests without escalation. This allows HR staff to focus on more complex work like coaching, workforce planning, and talent development. In marketing, AI has reduced the amount of time employees spend on repetitive tasks, thereby giving them more freedom to try new ideas and original projects.
However, Adashek believes that the key to unlocking AI’s full potential is to first get a company’s data in order. Indeed, strong, integrated, and flexible data systems, along with privacy protections, make it possible to detect patterns and make better strategic decisions. Interestingly, Adashek compares AI to an iceberg: the 20% above the water is the flashy, visible technology, while the 80% below represents the deeper systems, processes, and data that truly drive transformation. Focusing on that hidden 80% can boost productivity and help businesses scale better than chasing the latest shiny tool.
Is IBM a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on IBM stock based on seven Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average IBM price target of $296.15 per share implies 24.3% upside potential.
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