Increased Investment in Technology, particularly AI
Nash reports that despite global economic turbulence, technology investment remains a priority. Over 40% of digital leaders plan to increase their tech budgets within the next year, and a third anticipate expanding their tech teams. This aligns to what our CEO, Pete Smyth, has reported to our board and what we are seeing as a Consulting team, even in the last three months: budgets are unlocking and businesses are bringing forward planned change and transformation.
AI
Nash has reported that nearly 75% of organisations have integrated Generative AI (GenAI) tools, which is an astonishing number. However, we are seeing a very mixed approach and in a lot of cases “avoiding the AI conversation” and outright banning the use of the technology due to perceived risk and inadequate time to put in place robust policy. Tech leaders are however pushing ahead with the use of AI for operational improvement purposes and the uptake of Observability tools, for instance, is fast.
We are also seeing great adoption in the data world and the use of AI to improve Data analytics is again fast-paced and building further momentum.
There are however interesting cases where AI has not been able to fulfil the use-case. Sky reported recently that McDonalds 3-year trial of AI Drive Thru at 100 restaurants in the US powered by IBM has failed to fulfil its ambitions. Bacon topping on ice cream was perhaps the highlight – sources suggest Heston Blumenthal had something to do with the new menu!
AI leadership is becoming a must and large businesses are starting to employ Chief AI Officers, in a similar vein to how the industry pivoted around security and started employing CISOs, now common-place in one form or another across the world.
Economic Outlook and Strategic Focus:
It appears that industry experts are cautiously optimistic about gradual economic recovery, with some expecting a return to normalcy within 6-9 months. Our view, also reported by Nash, is that strategic investments in AI, automation, and tech skills are a must to build on that economic recovery.
Strategic Recommendations:
- Enhance operational Efficiency in approaches such as Observability
- Work with the business to agree great AI “use” and business cases, especially those that reinforce or improve the customer experience
- Invest in AI governance, ownership and leadership