Technology leaders prioritise AI despite challenges ahead - IDC

A recent IDC InfoBrief commissioned by Expereo, the global intelligent internet company, reveals critical insights into the attitudes and priorities of over 650 global technology leaders. These findings illuminate the optimism surrounding business growth in the next 12 months, driven by robust technology investments, particularly in the field of artificial intelligence (AI). However, the survey also highlights significant obstacles posed by short-term technology planning.

According to the survey, an impressive 81% of technology leaders anticipate moderate to high growth over the coming year. This optimism is underpinned by a significant emphasis on technology's role in fostering growth, with nearly one-third of respondents identifying growth—via increased revenue, market expansion, or entering new segments—as a top-three priority for their tech investments. A notable 52% of global enterprises expect moderate growth, while 29% foresee high growth.

Among the top priorities for technology leaders is the direct contribution of technology to business growth and increased turnover. This rising expectation places immense pressure on tech strategies to deliver tangible results. Yet, the survey reveals a disconcerting pattern; only 22% of global enterprises have achieved full digital maturity. Most organisations are still hindered by short-term digital plans and isolated digital excellence across IT and business units, potentially jeopardising long-term growth.

Alarmingly, 33% of global enterprises admitted to a short-term focus in their digital strategy, with initiatives often having a limited lifespan. Further complicating efforts, over a quarter of respondents indicated insufficient collaboration between CEOs and technology leaders, threatening the success of digital transformation projects.

The survey identifies several key challenges that technology and business leaders face. Geopolitical issues emerged as a significant threat to growth ambitions, with 38% of respondents fearing potential impacts on their business or technology providers. Other concerns included inflation (34%), economic uncertainty (32%), uncontrolled spending by business units (31%), and global network performance (30%).

When discussing the execution of digital initiatives, respondents flagged IT integration complexity (41%), partners' capabilities (40%), and a lack of regional expertise (35%) as primary hurdles. These issues highlight the technical, economic, and cultural complexities that organisations must navigate to stay on their growth trajectories.

Automation surfaced as a crucial growth enabler, with nearly half (49%) of respondents identifying increased automation as their primary strategy for delivering global growth. Sixty percent consider automating business operations and processes as important or extremely important. Other key initiatives include focusing on cost containment and efficiencies (44%) and driving increased innovation (39%).

AI stands out as the top technology investment priority for 42% of respondents, narrowly surpassing security (37%) and cloud or multicloud networking/connectivity (35%). Furthermore, 31% of global respondents believe that AI and machine learning will be critical to achieving their business goals, with an additional 60% considering these technologies important.

Ben Elms, Chief Executive Officer at Expereo, remarked on the findings: "This year's Enterprise Horizons report brings encouraging news: there is a growing optimism about global growth, and the critical role of technology in driving this progress is widely acknowledged. Many organisations are eager to accelerate their digital transformation journey, but the path forward remains a work in progress for many. Bridging the gap between the fifth of global organisations that exhibit full digital maturity and the rest is imperative."

Elms further emphasised the need for a comprehensive, long-term digital strategy encompassing AI, automation, analytics, cloud performance, security, network visibility, and connectivity to ensure sustained high growth, performance, agility, and scalability.