The Nash Squared Digital Leadership Report, in collaboration with CIONET, discovered that while at least 87% of digital leaders anticipate an economic downturn, 52% anticipate an increase in their technology budget. It goes on to say that global technology spending is expected to grow at the third fastest rate in more than 15 years this year, with only 12% expecting it to fall.
It goes on to say that investment in emerging technologies such as AI and Big Data has slowed, and that global economic instability is threatening opportunities for innovation.
According to the report, this growth is the result of numerous digital transformation projects that have stimulated executives’ interest in technology over the last two years. It goes on to say that digital leaders believe that investing in technology, whether it’s on-demand IT, data analytics, or automation, will help their organizations deal with an already difficult business environment.
The report also revealed that while cloud investment remains strong, with 63% of correspondents reporting large-scale usage, companies are reducing their investment in all other technologies (Big Data, AI/ML, and RPA) that are critical to innovation and gaining a competitive advantage.
“Economic headwinds are gathering and indicators are turning negative – but despite or even because of this, businesses know that investment in technology remains crucial. Both to maximize the efficiency of what they already have and to become more agile and responsive in highly unpredictable conditions, technology is the key enabler. But while technology investment intentions stand at their third highest level in over 15 years, nevertheless there are signs that some businesses are reining back on investment in areas like AI and Big Data. The reasons for this are understandable, but organizations should be careful not to cut back too deeply,” Nash Squared CEO Bev White stated.
The sources for this piece include an article in ZDNET.