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Executives Think They're Further Along in AI Than They Are

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Sarah Kimmel avatar
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Executives think their AI strategy is working. The data says otherwise. Here's why the perception gap is a growing risk.

There is a growing disconnect inside enterprise AI strategies — and it may be one of the biggest risks organizations face.

Senior leaders believe their organizations are more advanced in AI than they actually are. And that misalignment is showing up across the business.

According to new research from Pigment, conducted in collaboration with the research arm of Simpler Media Group, perceptions of AI maturity increase dramatically with seniority. Executives are more likely to describe their organizations as advanced, more likely to believe AI is delivering strong results and less likely to see barriers to success.

The problem is that those perceptions are not always grounded in operational reality.

Table of Contents

The Perception Gap Is Systemic

The data reveals a consistent pattern. As respondents move up the organizational hierarchy, their assessment of AI maturity becomes more optimistic.

Executives report stronger impact, higher expected ROI and fewer obstacles.

More junior leaders — closer to day-to-day execution — report more friction, including challenges with data quality, implementation and adoption.

This is not a difference in opinion. It is a difference in visibility.

Senior leaders have a macro view of strategy and investment. Operational teams experience the complexity of implementation. When those perspectives diverge, decision-making can become misaligned.

Related Article: What Effective Data and AI Leaders Do Differently

Why This Gap Matters

The implications are significant. If executives believe AI is more embedded than it actually is, they may:

  • Overestimate organizational capabilities
  • Underinvest in foundational needs like data quality and governance
  • Set unrealistic expectations for outcomes

In effect, they begin making strategic decisions based on a version of the organization that does not yet exist. That can slow progress rather than accelerate it.

The Risk Increases as AI Becomes More Central

This perception gap might have been manageable when AI was confined to pilots and isolated use cases. But as AI becomes embedded in core business processes — particularly in areas like forecasting, planning and decision-making — the cost of misalignment increases.

AI maturity is now tied directly to performance outcomes. Organizations that misunderstand their level of maturity risk falling behind without realizing it.

Closing the Gap Requires Better Feedback Loops

The solution is not more investment alone. It is better alignment.

Organizations need clearer feedback mechanisms between executive leadership and operational teams. That includes:

  • More transparent reporting on AI capabilities and limitations
  • Stronger visibility into where AI is — and is not — being used
  • Honest assessments of barriers, particularly around data and expertise

Without that alignment, even well-funded AI strategies can stall.

Related Article: Silent Struggles: How AI Is Fueling a Hidden Workforce Crisis

The Takeaway: Perception Is Now a Risk Factor

AI transformation is not just a technical or operational challenge. It’s an organizational one. And the biggest barrier may not be the technology, but how it’s understood internally.

Learning Opportunities

Leaders who assume they are further along than they are risk missing the very advantages they are trying to create. And in a landscape where AI maturity is increasingly tied to performance, that gap is one organizations cannot afford.

About the Author
Sarah Kimmel

Sarah Kimmel is the Vice President of Research at Simpler Media Group. Prior to that, she worked as Vice President of Research and Advisory Services at Human Capital Media (now BetterWork Media Group). Connect with Sarah Kimmel:

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