CxOs in the BT150 recount recovering from a ransomware attack and the ingredients for successful AI projects.

In our August BT150 meetup, CxOs in our network discussed cybersecurity and insurance as well as AI projects that actually work. The best advice was to not be blinded by LLMs. Here's a recap of our CxO call, which operates under Chatham House rules.

Live inside a ransomware attack. One CxO recounted a recent ransomware attack at his company. The attack exposed a big gap between cybersecurity awareness and execution. "The house of cards finally got revealed, which is good and bad, but also made me feel even more helpless," the CxO said.

Post-attack challenges abound. The company that was hit by the ransomware attack faced multiple challenges as it recovered. Here's a look:

  • Insurance complications. It took nine months to get pricing for a cybersecurity insurance pricing. Many insurers didn't want to cover ransomware attacks, but would cover recovery.
  • FBI guidance conflicts. The company was advised not to pay the ransom, but that advice conflicted with insurance policies that might cover ransom payments.
  • Extended recovery. Daily meetings were held as the company tried to assess what files were taken, encrypted, or compromised.
  • Boards are actively discussing ransomware recovery processes and debating whether it's better to get cybersecurity insurance or invest money in better security.

AI success

AI bubble or not, targeted success stories abound. CxOs discussed the ongoing conversation about the AI bubble and potential ramifications. It's a debate we've been having at Constellation Research. AI has been used for management training, warehouse operation optimizations and manufacturing. The key words across these AI projects were targeted, governed and measurable.

"Don't be blinded by large language models." The successful projects are likely to feature smaller models and industry models focused on use cases including physical AI.

Without governance, AI pilots fail. "I've seen a lot of projects where companies don't know what they're looking for and throwing AI blindly against the wall and hoping something sticks instead of identifying a specific process to fix," said one CxO.

Manufacturing's AI transformation. CxOs talked about the evolution toward industry 5.0 in manufacturing with the use of AI and digital twins driving transformation. AI agents are being developed for functional testing, defect detection and assembly line optimization. The takeaway: AI-enhanced processes are reinventing manufacturing.

Leadership and governance matters. CxOs on the call emphasized that successful AI implementation required strong leadership and governance frameworks. Participants noted that without proper executive oversight and targeted approaches, AI initiatives often fail to deliver expected value, reinforcing the importance of senior leadership in driving AI strategy and execution.

 

Business Research Themes

Data to Decisions, Digital Safety, Privacy, and Cybersecurity, Innovation and Product-led Growth

Roles

Chief Executive Officer, Chief Information Officer, Chief Information Security Officer, Chief Technology Officer

Tags

BT150, cxo, cybersecurity, Artificial Intelligence (AI)