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Global technology leaders expect to see moderate to high growth over the next 12 months, despite macroeconomic and political concerns.
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Investing in AI is now a top priority for technology leaders
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However, only a few surveyed said their networks are ready to support AI.
New research shows that the growing popularity and potential of artificial intelligence (AI) has business leaders excited about the coming year: 81% of over 650 global technology leaders surveyed by International Data Corporation (IDC) expect their business to experience medium to high growth over the next 12 months.
The survey, commissioned by Expereo, found that 69% of enterprises are either preparing to adopt AI or have already deployed it at scale. However, there are some hurdles to overcome, including the need for a robust network infrastructure to fully support AI: only 14% of respondents said their network is ready for it.
Dan Beevers, chief customer officer at Expereo, noted that investing in technology is a priority for most business leaders today. The biggest driver? The desire to achieve cost-saving automation.
“How do we find ways to automate business operations or processes that may serve a very functional role but are potentially very costly, thereby either reducing costs or reinvesting those costs into growth opportunities,” Beavers continued. He told Fierce Network that roughly 60% of CIOs agreed that automating operations and processes has risen from “important or extremely important” to being a consideration.
Automation and AI can be applied to everything from customer service and back-office processes to finance and human resources. Beavers said many leaders are looking for ways to move away from cumbersome processes and gain insightful data.
However, several factors prevent or limit organizations' networks from supporting large-scale data/AI projects, the report noted.
For example, networks that cannot elastically scale on demand or deliver high application performance can prevent companies from implementing large-scale AI projects. Other issues include insufficient network bandwidth for very large data transfers and networks that do not adequately connect to and between clouds.
Additionally, security and cloud and cloud connectivity remain high on the agenda: The report found that 42% of respondents cited AI as their top technology investment priority, closely beating security (37%) and cloud or multi-cloud networking/connectivity (35%).
The Expereo report highlights that “these three are critical components to any organization's AI strategy.”
Due to skills shortages and inadequate AI training infrastructure, training AI models at scale is increasingly dependent on cloud networking, which requires stronger cloud and multi-cloud access. Surveyed organizations said they believe cloud connectivity is the most important aspect of their network, as it not only supports overall cloud usage and migration, but also the expansion of high-priority AI and automation initiatives.
According to Expereo, enterprises have a clear understanding of their network requirements and are looking for service providers that can deliver reliable, flexible and agile networks with visibility and cloud connectivity.
Macro failure
Ultimately, there are many factors that influence whether an organization can achieve digital transformation and beyond.
The Expereo research also highlights continued volatility and unpredictability in the global macroeconomic environment, as well as “persistent digital business gaps. AI readiness varies significantly depending on a company's size, growth prospects and digital maturity, and AI will further widen the gap between industry leaders and laggards,” it noted.
When asked about the biggest risk to growth over the next 12 months, 38% of global respondents cited geopolitical issues as their main concern. Other key risks included inflation (34%), economic uncertainty (32%), uncontrolled spending by business units (31%) and network performance/connectivity issues (30%).
The top challenges in executing digital initiatives include IT integration complexity (41%), partner capabilities (40%) and lack of local expertise (35%). To address some of these issues, organizations are rebooting their talent acquisition and reskilling plans to meet new needs.
Beavers said the CIO role has changed over time to focus specifically on growth through supporting and developing a company's digital transformation efforts.
Expereo argues that many businesses have a problem with “short-termism”, meaning that a third (33%) of global businesses surveyed admit to a short-term focus, their digital strategies, while enterprise-oriented, are typically short-lived, and they often have siloed digital excellence across IT and business functions.
Only 22% of companies worldwide have reached full digital maturity, which the company defines as “a scenario in which a long-term digital business strategy is in place and a digital-first trajectory is aligned across the enterprise.”
“[CIOs] “You need to lead with a more holistic long-term rollout, like a nearly 360-degree digital strategy that encompasses your entire technology stack,” Bevers added. “From AI to automation, cloud performance mechanics, security, network visibility and even core connectivity. Having the right talent within your organization to make that happen is key.”
For many small and medium-sized businesses, the CIO role may be able to address this challenge, but Expereo's research suggests we may see an increase in business roles designed specifically for AI, similar to the rise of the chief sustainability officer.
Some organizations are creating the role of “Chief AI Officer” to address these concerns. Ethics in the use of AI is a major concern, and the CAIO can be another person at the table, along with the CEO, CIO, CSO, and ESG head, to discuss how the organization is using AI with sustainability and ethical standards in mind.
Having the right leadership support within an organization can help find “the balance of how to keep up with the pace of technology without pushing you to a point where you can't keep up,” Beavers said.
Finally, companies realize they can't do it alone. They need to find the right partners to provide the technology or help them understand the capabilities they need, Beavers added. From technology partners to consultants, these relationships “can actually build in-house capabilities, whether that's leadership or the employees themselves.”
