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Business leaders approaching tech investments with caution amid economic uncertainty

Artificial intelligence (AI) and generative AI top the list, followed closely by big data and predictive analytics

Business leaders approaching tech investments with caution amid economic uncertainty
[Source photo: Krishna Prasad/Fast Company Middle East]

The global economy continues to face a period of heightened uncertainty due to factors like geopolitical tensions and rising inflation. This, in turn, is creating a challenging environment for businesses, one in which they are forced to hold back on investments and revisit their strategies.

A new report illuminates how ongoing uncertainty in the tech sector is shaping business leaders’ investment decisions. Endava’s 2024 Emerging Tech Unpacked report explores which emerging technologies companies prioritize. 

Based on a survey of nearly 700 organizations globally, the study reveals a focus on practical technologies with near-term benefits. Artificial intelligence (AI) and generative AI top the list, with near-universal awareness (99%) among respondents. Notably, less than 3% consider AI irrelevant to their business. 

Big data and predictive analytics follow closely, with over two-thirds of respondents already implementing or planning to implement these technologies. The Internet of Things (IoT) takes the fifth spot, with the highest implementation rate (40%) of all surveyed technologies. 

The report highlights a cautious approach towards more speculative technologies. While 53% of respondents recognize the potential relevance of the metaverse, only 17% have a concrete implementation strategy. This suggests a wait-and-see approach to technologies with less proven impact. 

Environmental, Social, and Governance (ESG) considerations are also gaining traction. While nearly three-quarters of respondents acknowledge its relevance, only 17% have a formal ESG implementation strategy. This indicates a growing recognition of ESG’s importance alongside a need for more concrete action plans. 

“Business leaders are focused on ensuring that their investments are placed in technologies which are most likely to provide near-term tangible benefits and resilience,” says Endava CTO Matthew Cloke. 

“Companies are putting large amounts of resources into artificial intelligence, particularly generative AI, as many expect to see an almost immediate impact.”

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