Virtuous AI, in partnership with Chief Executive Group, has published a new whitepaper titled "The State of AI Adoption in the Mid-Market: How CEOs Are Approaching and Using AI." The report, based on a survey of mid-market CEOs, reveals near-universal belief in AI's value but a significant execution gap, with most companies limited to isolated pilots rather than coordinated, company-wide strategies that deliver measurable business outcomes.
Quick Intel
Mid-market CEOs widely recognize AI's strategic importance but struggle to move beyond experimentation. The research highlights that while enthusiasm is high, adoption remains fragmented, often focused on tactical efficiency gains rather than transformative outcomes like revenue growth or innovation.
"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."
A real-world example from the report is Mugsy, a fast-growing apparel brand facing inventory challenges and inconsistent data from numerous website plugins. Leadership prioritized a single source of truth for performance visibility and developed an AI-driven inventory planning model. Early tests indicate accuracy in the 90% range—significantly better than previous "wins" of 70–80%—freeing working capital, reducing discounting, and enabling faster, more reliable decisions.
The findings illustrate a common pattern: AI often enters mid-market organizations through point solutions and experiments, which can create additional silos, integration burdens, and technical debt over time. Virtuous AI describes this as an "execution gap" between aspiration and operational capability. Closing it requires shifting to an embedded operating model where AI informs and enhances decision-making across the enterprise.
"Using AI to improve productivity is a good starting point," Happ added. "But companies that stop there risk falling behind competitors who use AI to rethink how the business operates."
The full whitepaper, "The State of AI Adoption in the Mid-Market: How CEOs Are Approaching and Using AI," is available for download 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.
TechIntelPro empowers B2B technology decision-makers with the latest industry trends, deep insights, leadership perspectives and actionable intelligence to drive both organizational and professional milestones—and thrive on the tech pulse.