The Blubber

AI is reshaping the C-suite as executives seek new ways to streamline workflows and drive profits. But beyond boosting efficiency, business leaders are turning to AI for strategic guidance—and many trust it more than their closest human advisors.

A recent study by SAP, a data and software firm, found that 74% of executives trust AI for business advice more than colleagues or friends. Even more striking, 38% of executives are comfortable letting AI make decisions on their behalf, while 44% defer to the technology’s reasoning over their own judgment.

One reason for this growing reliance on AI is its unparalleled ability to process vast amounts of data, says Jared Coyle, chief AI officer at SAP North America. “The systems within large organizations have become so complex and data-driven that AI is as capable as the smartest minds in the world when it comes to analyzing information and identifying key options,” Coyle tells Fortune. “Executives trust input from friends and colleagues, but those people haven’t just processed two billion data points before offering their advice.”

Executives primarily rely on AI for data analysis, forecasting, and identifying risks they might have otherwise overlooked. But perhaps more significantly, 64% of business leaders have fully integrated—or are in the process of integrating—generative AI into executive decision-making.

“It’s not just about quantitative insights. AI can spark creativity and generate ideas that leadership teams might not have considered,” Coyle explains.

Despite its advantages, AI isn’t infallible. Generative AI models can produce inaccurate or misleading results due to gaps in training data. Unlike humans, AI lacks consciousness and critical thinking skills.

As AI’s role in business decisions expands, Coyle stresses the importance of keeping humans in the loop, especially for high-stakes strategic choices.

“For decisions with significant business consequences, the margin for error has to be near zero,” he says. “That’s why, in those cases, most leaders still turn to trusted data sources and ensure human oversight remains part of the process.”