Capgemini: Business Leaders Increasing Tech, AI Investments

Technology investments look set to continue to dominate the agenda for organisations, after a Capgemini report found 83% of business leaders plan to increase investments in digital tools and technologies such as AI.

The Capgemini Research Institute’s Embracing a brighter future: Investment Priorities for 2024 report also found that sustainability is increasingly a key issue for organisations, with 52% of businesses planning to boost green initiatives in the next 12-18 months. 

According to the report, over half (56%) of leaders retain confidence in their organisation’s future growth despite current macroeconomic headwinds: an increase from 42% 12 months earlier.

“Our annual report on the sentiment and investment intentions of global business leaders provides cause for optimism at the start of 2024,” said Aiman Ezzat, Chief Executive Officer at Capgemini. “Business leaders are beginning the year with an increased sense of confidence compared to 12 months ago, with technology and AI set to drive the next phase of the transition towards a more digital and sustainable global economy.”

Digital tools & technologies the key focus of investment, starting with AI

Businesses waging their bets on AI are already seeing a tangible business impact, according to a Microsoft-sponsored study by IDC finding that for every $1 a company invests in AI it is realising an average of $3.5X.

Capgemini’s report found that AI will increasingly be used as a driver of innovation. As business leaders increasingly realise the power of AI and Gen AI, its report found that 88% plan to focus on that technology.

But the report also found that cybersecurity remains a critical issue for business leaders, with technologies like Gen AI and the cloud having created gaps in cybersecurity. According to Capgemini’s report, almost two-thirds (61%) of business leaders now consider cybersecurity threats a leading risk to business growth.

Sustainability investments to increase, while talent remains a key priority

Sustainability has become a core consideration for IT decision-makers, and Capgemini’s report identifies climate change as an existential threat. Nearly half of global business leaders told the report that they expect climate change to be the biggest driver of operational disruption over the next decade. 

With this in mind, business leaders say that a lack of sustainable practices and processes will pose a long-term existential risk for their organisations.

Meanwhile scarcity of talent with the right skills ranks among the top business risks for nearly six in ten organisations. As organisations plan and implement their “return-to-office” policies, a quarter also plan to increase investments in office space, up from only 4% last year. However, organisations also believe that flexible and hybrid work engagements are here to stay.

“It is good news that business leaders are increasing investments in a wide array of critical business areas from customer experience and innovation to talent and supply chains, and perhaps even more importantly sustainability,” Ezzat adds. “We have only scratched the surface of what digital tools and technologies, in particular AI, can achieve to reach these business objectives.”

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