CEOs are increasingly acknowledging gaps in their own technological understanding
There’s been a noticeable shift in how CEOs view technology. It wasn’t that long ago when many in the C-suite saw IT as just a cost center, something handled by “the tech guys.” That’s changed. Fast. Today, access to digital knowledge isn’t optional. CEOs are waking up to something they should’ve known years ago: You can’t lead a modern company without understanding the tools that power it.
Some are honest about it. According to a 2021 survey by Istari, 72% of CEOs admitted to feeling uncomfortable making decisions about cybersecurity. And in 2025, Cisco published research showing that 73% of CEOs believed they had lost competitive advantage because they didn’t understand enough about IT. You read that right, nearly three in four CEOs linking knowledge gaps directly to lost ground in the market.
They’re taking steps, learning, getting their hands dirty, understanding how things work. That’s the right move. The companies that win are the ones whose leaders take technology seriously, not just as an operational function, but as a path to competitive advantage.
For executives, here’s the reality: the companies that adapt their leadership mindset to include technology as core to decision-making will own the future. Everyone else? They’ll get left behind. Digital is now woven into every part of business, from customer experience to logistics to product development. Understanding it, truly understanding it, is leadership.
CEOs often face challenges in understanding and integrating technological solutions
Most CEOs today were trained in finance, sales, or operations. That’s what built businesses for the last few decades. It worked, until digital took over everything. Now, those same skills aren’t enough.
Many current leaders struggle to evaluate core technologies, AI, cybersecurity, infrastructure. They can run financials, build market strategies, lead teams. But when it comes to knowing if an AI integration is secure, or whether a company’s data platform can handle the next five years of growth, they defer. That’s where problems start. If the person at the top doesn’t understand the tech, they can’t properly lead the strategy.
According to Cisco’s 2025 report, 74% of CEOs felt they couldn’t make informed decisions about AI because of limited knowledge. The result: hesitation, delays, or worse, implementing the wrong solutions entirely. AND Digital’s research backs this up too. Almost two-thirds, 64%—of CEOs identified as “analogue leaders.” One-third admitted they didn’t have enough digital knowledge to guide company growth. Among women CEOs, the number who felt under-skilled in tech jumped to 46%.
This lack of understanding often creates dependency on their CIOs or CTOs to validate every decision. Even worse, it can lead to distrust or hesitancy between business and tech teams. That’s a vulnerability. In a market where speed and accuracy matter, businesses need leaders who aren’t afraid of the digital terrain.
Technology is not separate from the business, it is the business. And CEOs must understand enough to ask the right questions, make critical calls, and see where the real opportunities and threats are. If they don’t, someone else will.
Tech-savvy CEOs drive more aggressive innovation
CEOs who understand technology have a clear edge. They move faster, make smarter bets, and lead companies that innovate earlier and more effectively. They’re not waiting for someone else to validate the value of a new system or platform, they see it, assess it, and act. That mindset doesn’t come from delegation. It comes from knowing enough to evaluate the terrain themselves.
Leaders with scientific or engineering backgrounds are leading companies that are more aggressive in digital transformation. They know how emerging technologies translate into real gains. These CEOs use data to review operations but to define strategy. They understand cybersecurity as both a risk and a trust asset. And they put systems in place to scale innovation before the market forces them to.
A 2021 study by MIT Sloan Management Review found that when company leadership understands advanced technology, those organizations see 48% greater revenue growth compared to those that don’t. A 2024 article in Nature backs this up. It showed that leadership with research or scientific backgrounds directly correlated with more aggressive digital adoption. The evidence is clear, CEOs who are technically literate lead better in today’s environment.
As customer demands shift toward faster, smarter, and more seamless experiences, companies need to be ahead of digital trends. Nagar, an executive quoted in the original research, reinforced this when he said, “What CEOs are finding is that customers want to have an experience that is extremely technology forward: frictionless, faster, better, cheaper.” That starts with leadership, CEOs who know enough to lead from the front in digital strategy.
CEOs are actively engaging in digital upskilling and immersive tech experiences
The mindset is changing. CEOs are stepping into training. They’re working with their teams, taking digital upskilling seriously, and embedding themselves in technology conversations instead of observing from the sidelines.
They’re moving beyond surface-level exposure. CEOs are enrolling in courses, partnering with their technical staff in reverse mentoring setups, joining advisory boards with deep technical insight, and participating in live simulations that mimic real-world tech challenges. These are real learning experiences that improve their day-to-day decision-making. Learning from their teams directly accelerates understanding, and strengthens culture.
In fact, 78% of CEOs are already enrolled in some form of digital upskilling, according to research from AND Digital. Cisco complements this with data showing 84% of CEOs believe tech literacy will be essential for their role going forward. It’s becoming the standard, not the exception.
Nagar shared how his team runs weekly technology days, where people across roles openly share what they’re learning. These are practical, bottom-up teaching moments that keep innovation moving across the company. Wee, another tech executive, pointed out a critical issue many overlook, companies with limited digital engagement from leadership often fall behind, just as some did when earlier waves of technology adoption demanded institutional support.
Here’s the point: upskilling doesn’t need to mean becoming a developer, it means knowing how systems connect, how to ask the right questions, and how to maintain control over tech-driven outcomes. CEOs who spend time learning these things lead with clarity and speed. They give their organizations the capacity to build for the future with fewer blockers. And that’s where long-term growth exists.
CIOs and CTOs have become indispensable strategic partners
CIOs and CTOs are no longer technical advisors operating on the sidelines. They are now embedded in core business strategy, working directly with CEOs to guide digital transformation, manage cybersecurity, and scale infrastructure. More importantly, they are helping frame long-term strategy through the lens of digital risk and innovation.
The numbers confirm this shift. Cisco reports that nearly 80% of CEOs are relying more heavily on their CIOs and CTOs today than in previous years. And 83% now consider their CTOs vital to business outcomes. On paper, the partnership is strong. But the relationship still has inconsistencies, especially around responsibility. Many CIOs don’t believe CEOs equally share accountability when tech issues arise, especially in crisis situations. According to Istari, 30% of U.S.-based CIOs and 50% of European CIOs say their CEOs distance themselves from technology failures or cybersecurity incidents.
This imbalance leads to internal friction. CEOs may trust their technical leads but stop short of full alignment when it matters most, during actual risk events or high-impact decisions. That’s a problem, especially when digital operations are deeply tied to business functions. A CEO quoted in Istari’s research put it bluntly: “At that moment of an attack, you put the company into the hands of supply chain people and IT people. And those are not groups you would normally, or intuitively, give that kind of confidence and trust to.” That kind of thinking creates separation when there should be joint ownership.
Wee, an experienced CTO, highlighted the need for tech leaders to present information in business-relevant context. Her point: showing CEOs what a technology actually does for the business, what tasks it performs, what outcomes it delivers, builds stronger connections.
CTOs and other tech leaders are transitioning into CEO roles
There’s a clear trend in the market, tech leaders are stepping into CEO roles at a growing rate. Companies are recognizing that deep technical understanding is no longer a bonus in leadership candidates. It’s an operational requirement. As the complexity of digital systems grows, so does the value of having leaders who understand them on a functional level.
Cisco reports that 82% of current CEOs expect more CTOs will move into chief executive roles in the future. The reason is simple: these leaders already play a key role in defining business direction, implementing systems that drive performance, and proactively managing both opportunity and risk in emerging technologies. A 2018 Harvard Business Review study already flagged this trend, and it’s accelerating.
The market proves it. Some of the most prominent CEOs today emerged directly from technical roots, Sam Altman (OpenAI), Jeff Bezos (Amazon), Demis Hassabis (DeepMind), and Mark Zuckerberg (Meta) all built their success by blending deep tech fluency with bold business vision. These leaders didn’t inherit playbooks. They wrote them by understanding what technology could do and organizing teams around execution.
This isn’t to say the traditional business mindset is obsolete, but it’s limited without technological fluency. Digital infrastructure is no longer a backend concern. It defines customer experience, operational efficiency, and competitive speed. If a company can’t capitalize on evolving platforms like AI and data, it’s not going to lead.
Wee stated from personal experience that “a CTO role is a business role compared to being a pure technologist,” clarifying that today’s technology leaders spend as much time aligning customer needs with business priorities as they do managing architecture. The overall shift sees CIOs and CTOs already influencing revenue discussions, growth planning, and customer strategy. Results show that 55% of CIOs are actively shaping business strategy.
CEOs must now reflect a hybrid skill set. Those who can forecast tech shifts, align cross-functional teams around emerging capabilities, and guide their companies through digital transformation are necessary for the next phase of business leadership.
Key takeaways for leaders
- CEOs must close tech gaps to compete: Tech fluency is now essential at the executive level. Leaders should acknowledge their limitations and actively upskill to make faster, smarter, and more competitive decisions around IT and digital strategy.
- Business-only backgrounds limit digital leadership: CEOs without a tech foundation struggle to evaluate AI, cybersecurity, and infrastructure investments. Leaders must bridge this gap or risk delayed decisions, missed opportunities, and increased business vulnerability.
- Tech-savvy CEOs drive faster growth: Executives with strong technological understanding are more effective at prioritizing innovation and navigating disruption. Leaders should integrate tech literacy into core competencies to increase adaptability and revenue growth.
- Digital upskilling builds better decision-makers: CEOs pursuing tech training, simulations, and team-driven learning are making sharper, more confident calls. Embedding these habits organization-wide strengthens culture and improves innovation at all levels.
- CIOs must be strategic partners: CIOs and CTOs now shape business direction, but often lack equal accountability in failures. CEOs should reinforce shared ownership of outcomes to strengthen trust and unify digital execution.
- CTOs are the new CEOs in a digital-first market: The next generation of CEOs will come from tech leadership roles. Boards and executive teams should prioritize candidates with strong digital fluency to lead in increasingly tech-driven markets.
