Exclusive: AI adoption accelerates as Lenovo unveils new insights for CIOs

Lenovo has recently published its third CIO Playbook, a comprehensive guide designed to help IT leaders navigate the fast-changing landscape of artificial intelligence.

According to Lenovo's Scott Tease, Vice President and General Manager of the Enterprise Product Line, the latest Playbook reveals how AI adoption has shifted from ambitious large-scale projects to practical, ROI-driven investments.

"We're seeing CIOs shift their focus," Tease said. "It's no longer about taking on grand challenges with AI, but rather helping employees become more productive and selecting projects that deliver strong returns on investment."

The Playbook, now in its third iteration, provides CIOs with critical insights into how their peers are managing AI integration. "When things are moving quickly, you want to learn from the leaders," Tease added.

Sumir Bhatia, president of Lenovo's Asia Pacific Infrastructure Solutions Group, also spoke with TechDay about the Playbook. He emphasized the big role it plays in helping Lenovo align with customer needs.

"This fast-changing environment means what was a focus 12 months ago could be quite different today," he explained. "This Playbook gives us insights into customer journeys, and how we can recalibrate with them."

Engaging with customers and partners

Lenovo's recent TechDay events in Sydney and Melbourne have provided the company with valuable customer feedback. According to Tease, these events serve as both information-sharing sessions and opportunities for dialogue. "Customers are incredibly vocal," he said. "They want advice and guidance, and they're looking for partners they can trust."

Lenovo is showcasing its partnerships with ISVs (Independent Software Vendors) to demonstrate practical AI solutions.

"Finding a way to apply AI to specific business problems is still an art," Tease explained. "Downstairs in the showcase center, we have our partners demonstrating how they're making AI a reality. Watching customers engage with those ideas and have their own lightbulb moments is fantastic."

Bhatia highlighted that this partnership model has been particularly successful across Asia Pacific. "We've seen fantastic feedback from customers," he said.

"Our AI Innovators program brings together global and local ISVs who have boots on the ground. Their solutions are already being showcased, which makes conversations with customers far more productive."

Regional differences in AI adoption

The CIO Playbook reveals notable regional disparities in AI adoption. Spending on AI initiatives is projected to increase 3.6 times across Asia Pacific in the coming year. In Australia and New Zealand (ANZ), that figure rises to four times.

"ANZ companies have been slower to adopt some AI technologies," Tease said.

"However, CIOs recognize they need to close the gap and are being given the budgets to make it happen."

Bhatia noted that retail in Australia and New Zealand is particularly active in AI adoption. "In my observation, retail is the biggest pipeline we're seeing," he said.

"Many Australian businesses are preparing to scale up AI initiatives in the next 12 to 18 months."

Factors driving investment growth

The substantial increase in AI spending is linked to two key factors: proven success in AI adoption and the emergence of AI PCs.

"CIOs are seeing tangible results from AI projects," Tease said. "Following others' successes and adapting those approaches is a far lighter lift than starting from scratch."

He added that AI PCs will play a major role in expanding AI access. "These devices look just like traditional laptops, but their AI capabilities will be game-changing," he explained.

"They'll make AI visible and impactful to more employees than ever before."

Bhatia stressed that this AI investment surge doesn't mean IT budgets are quadrupling. "It's a shift within the budget itself," he said. "More organizations are recognizing they need to prioritize AI to remain competitive."

"There are two kinds of companies," Bhatia added. "Those that are disruptors and those that will be disrupted. Organizations are seeing competitors embrace AI for customer experience, retention, and efficiency - they don't want to fall behind."

Barriers to AI adoption

Despite increasing investments, only 10% of businesses have implemented AI systematically. Tease attributed this to foundational challenges rather than failed attempts.

"Many CIOs have spent the past 12 to 18 months laying groundwork for reliable, ethical AI systems," he said. "That includes ensuring data governance, transparency, and security are in place."

Tease emphasized the importance of "ethical AI," ensuring AI models are transparent, repeatable, and unbiased. "Machines don't inherently know what factors to exclude in decision-making," he explained.

"We must ensure race, religion, or gender biases are excluded from the models."

Improving data quality

Data quality remains the most significant barrier to AI success, as highlighted in the Playbook. Bhatia explained that fragmented data across departments and clouds creates "major challenges."

"Governance has become the number one priority for CIOs," he said. "It's about aligning data management strategies to access information across various environments."

He stressed the need to prioritize data by identifying the "low-hanging fruit" that offers the best return on investment. "It's not about sending sensitive data to the cloud," Bhatia added. "Instead, bring AI to the data itself."

Tease emphasized the value of this strategy: "If CIOs lay down a solid data foundation that scales across departments, they can confidently implement AI for whatever business needs arise."

Balancing short-term wins with long-term strategy

To ensure success, Tease advised CIOs to "start small and get a win under your belt."

"Publicize that success," he added. "More budget and support will follow when others see the impact."

Bhatia agreed, highlighting the importance of strategic planning. "AI adoption is a marathon," he said. "You need to prioritize projects that align with your data, infrastructure, and ROI goals."

He encouraged CIOs to foster a culture of learning within their organizations.

"People won't lose jobs to AI; they'll lose jobs by failing to use AI," he said. "Training employees to embrace AI tools is key."

What's coming?

As AI continues to evolve, Tease predicts that AI's presence will expand beyond the data center to include hybrid models running across various devices.

"AI won't require supercomputers," Tease said.

"AI will run on laptops, mobile phones, and at the edge where real-time decisions are crucial."

"Hybrid AI is going to be the future. We will see AI capabilities integrated seamlessly across devices, making AI accessible to everyone."