According to research and consulting firm Forrester, global technology spending will increase 5.3% this year, up from 3.5% in 2023, to reach $4.7 trillion. The increase in spending will be driven by demand for software and IT services such as AI, cloud and security, which collectively will capture 69% of all technology spending by 2027.
Investments in GenAI software alone are expected to exceed $227 billion by 2030, with a compound annual growth rate of 36%, according to Forrester.
The Asia-Pacific region is expected to see the highest growth in technology spending (5.7%), followed by North America (5.4%) and Europe (5.1%).
Problem of lack of understanding of AI
Forrester estimates that the European economy will recover this year at a rate almost twice as fast as in 2023, and that technology spending is expected to increase from 5.1% to 5.7% between 2024 and 2027. This growth will be fueled through greater digital maturity of businesses and more advanced adoption of cybersecurity.
Business adoption of AI, however, will come with some uncertainty, according to a study by Kearney and Egon Zehnder, consulting and management firms that surveyed 100 executives in four countries.
The study found that 70% believe their business will be disrupted by AI in the next five years, but only 21% believe it has the capabilities to deal with this disruption.
The rapid growth of technology is a key factor, with 73% citing time, staff and money as limitations to their level of preparedness.
Some 51% said their leadership team’s lack of understanding of AI was a challenge. In comparison, among those who believe their organization is ready for AI, 89% point to business leaders’ understanding of AI and its capabilities as a contributing factor.
An opportunity for careers
The study notes that 85% of respondents view AI as an opportunity for their business and 95% view the technology as an opportunity for their career.
To prepare for AI, 49% said they are investing in infrastructure, while 44% are looking to external partnerships and 39% are recruiting experts in the field.
“The prevailing sentiment among executives when it comes to AI is optimism. The challenge now is to translate that optimism into tangible actions,” said Arjun Sethi, director of Kearney.
Source: “ZDNet.com”