CXO / IT Leadership

73% of US CIOs Foresee Increased IT Spending in 2024

Cybersecurity, AI and Cloud Migration Are Top Three IT Priorities
73% of US CIOs Foresee Increased IT Spending in 2024
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Recognize, a technology investment platform specializing in the tech services industry, has released insights from its recent CIO survey, offering a glimpse into the current IT landscape. The survey, involving 250-500 CIOs in the U.S., shed light on organizations' IT expenditures and budgetary plans, technological shifts, product preferences, strategic priorities, and talent challenges.

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Key Highlights

Augmented IT Budgets

The survey indicated an optimistic outlook for the tech sector, with 73% of U.S. CIOs foreseeing an increase in their IT budgets for 2024. This marks a positive trend in investment intentions, as 15% expect no change, and only 12% predict a reduction.

Cybersecurity Tops IT Initiatives

Among the top three IT initiatives, cybersecurity/data security has emerged as a leading priority, with 36% of organizations emphasizing its importance. Artificial intelligence closely followed at 35%, while cloud migration ranked third at 29%.

Rising Adoption of LLMs

The study found a widespread adoption of large language models, with 69% of organizations presently utilizing LLMs. However, 24% of organizations are yet to implement this technology, and 7% are uncertain about their engagement with these advanced AI systems.

Notably, 50% of the organizations have embraced OpenAI's GPT-4, positioning it as the predominant choice, while 19% of organizations opt for its predecessor GPT-3.5. The diverse ecosystem also includes models such as Google AI's PaLM 2, Anthropic's Claude v1, and various offerings from the Technology Innovation Institute (such as Falcon 7B, 40B and 180B) and Stability AI.

Future of AI

The surveyors foresee a significant AI impact on their organizations in the next two years. A majority (54%) expect substantial use cases driving productivity, while 22% anticipate a transformational impact on business operations. Meanwhile, 19% of the CIOs believe that AI's influence is notable in certain use cases but not overwhelmingly dominant. Six percent of them perceive that AI does not significantly contribute to driving productivity in their organizations.

"There is no doubt that AI will impact all businesses. There are many use cases that drive productivity and transformation," said John Collins, former CTO at Citi. "I see AI as not necessarily business transformational but process transformational."

David Briskman, managing director, Digital Storm Consulting, stressed on the comprehensive and multifaceted influence of AI, shaping both overall business strategies and the core functions of IT.

"AI will fundamentally change the way IT creates and delivers value to organizations. From the fast implementation of RPA, to chatbots, to seamless business process automation, rapid code/functionality development and ultimately the real ability to create actionable insights from the vast sources of data we now have access to. This will change everything IT does, for the better," Briskman said.

Source: Recognize

Surge in ERP Projects

Nearly half of the organizations surveyed, 47%, are already in the process of implementing a major enterprise resource planning project, highlighting a substantial commitment to enterprise system upgrades. Additionally, 37% are planning to initiate ERP projects in the next year, indicating a proactive approach to enhancing organizational efficiency. Only 12% of organizations are not currently involved, with 4% remaining undecided.

Source: Recognize

As organizations prepare for the future, the survey indicates a clear trajectory toward embracing innovative solutions to drive efficiency and productivity.


About the Author

Brian Pereira

Brian Pereira

Sr. Director - Editorial, ISMG

Pereira has nearly three decades of journalism experience. He is the former editor of CHIP, InformationWeek and CISO MAG. He has also written for The Times of India and The Indian Express.




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