New report finds mid-market CEOs see AI’s value, while expertise and integration gaps slow execution

SILICON VALLEY, Calif., Jan. 21, 2026 /PRNewswire/ — Virtuous AI, in partnership with Chief Executive Group, released new findings from its whitepaper, “The State of AI Adoption in the Mid-Market: How CEOs Are Approaching and Using AI,” providing a data-driven look into how mid-market companies are deploying artificial intelligence and where adoption continues to stall.

Based on a survey of mid-market CEOs, the research finds that while belief in AI’s importance is nearly unanimous, only a small minority of CEOs report having a coordinated, company-wide strategy in place. Many organizations are pursuing isolated pilots focused on efficiency, rather than connecting AI to measurable outcomes across the business.

“Mid-market CEOs aren’t debating whether AI matters anymore; they’re wrestling with how to operationalize it,” said Chris Happ, CEO of Virtuous AI. “This research shows a clear execution gap: strong belief in AI’s potential, but limited strategy, expertise, and integration to scale it. The opportunity is to connect intelligence to action and build from pilots to real business outcomes.”

Key findings from the survey include:

98.5 percent of mid-market CEOs say AI has value for their business, while only 1.5 percent say it does not.
Only 7 percent of CEOs report a company-wide AI strategy with multiple initiatives; 52 percent are in the pilot phase, and 31 percent have explored AI but not implemented it.
78 percent cite efficiency and cost reduction as the primary objective of AI initiatives; 19 percent prioritize new products, services, or revenue streams.
The top barriers are lack of AI expertise (86 percent), difficulty integrating AI with existing systems (81 percent), and data quality/accessibility issues (65 percent).
Six in 10 CEOs report having active AI projects underway, even without enterprise-wide strategies.
In a case study, Mugsy reports early tests of an AI-driven inventory planning model that can reach accuracy in the 90-percent range.

The research conducted in partnership with Chief Executive Group spotlights Mugsy, a fast-growing men’s apparel brand navigating inventory issues and fragmented data across systems, as a real-world example of how mid-market companies can close the gap between AI enthusiasm and execution. As Mugsy scaled, leadership faced a familiar challenge: core business data was scattered across systems. Over time, the company added “20 or 30” website plugins — each with its own version of performance. “If I asked a relatively simple question like, ‘What was our return on ad spend yesterday?’ I could get four different answers,” said CEO Leo Tropeano.

Rather than shop for yet another forecasting tool, Mugsy started with an outcome: better inventory and data decisions to free working capital, reduce unnecessary discounting and establish a trusted day-to-day view of performance. The brand is now using connected data to get faster, consistent answers from a single source of truth and developed an inventory planning model that early tests suggest can reach accuracy sometimes in the 90-percent range, compared with 70–80 percent previously considered a “win.”

The findings point to a consistent pattern: AI typically enters mid-market organizations through experiments and point solutions rather than through a shared operating strategy. Over time, those disconnected efforts can create more silos, more integration burden, and mounting “technical debt.” The roadblocks to implementation create what Virtuous AI describes as an “execution gap,” the widening distance between what leaders want AI to deliver and what their organizations are able to operationalize.

Closing this gap requires moving beyond disconnected tools toward an operating model where AI is embedded into how decisions are made and executed across the enterprise. “Using AI to improve productivity is a good starting point,” said Chris Happ. “But companies that stop there risk falling behind competitors who use AI to rethink how the business operates.”

The State of AI Adoption in the Mid-Market: How CEOs Are Approaching and Using AI is available at virtuousai.com/state-of-ai-adoption.

About Virtuous AI
Virtuous AI is a strategic AI company focused on helping mid-market organizations close the gap between insight and execution. By unifying data, intelligence, and automation, Virtuous AI enables businesses to move faster, operate smarter, and drive measurable outcomes. Learn more: www.virtuousai.com

About Chief Executive Group
Chief Executive Group exists to improve the performance of U.S. CEOs, senior executives and public company directors, helping you grow your companies, build your communities and strengthen society. Through our peer networks, live events, proprietary research and flagship publications–including Chief Executive and Corporate Board Member–we connect CEOs, senior leaders and public company directors of nearly every sizable company in the United States, sharing your experiences, insights and hard-won wisdom to mutually benefit each other. Learn more at ChiefExecutiveGroup.com.

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