KPMG Global Tech Report and Trends in Technology Investment

The KPMG Global Tech Report 2024 sheds light on how businesses are navigating the complex landscape of technology investments. With emerging technologies such as Generative AI and quantum computing making significant strides, companies face a constant dilemma, innovate to stay competitive or proceed cautiously to avoid the financial strain of hasty decisions. 

The dilemma: innovate or make strategic decisions?

As new technologies continue to evolve rapidly, businesses are often torn between the urgency to innovate and the need to make informed, strategic decisions. According to the KPMG Global Tech Report 2024:

• 87% of organizations reported benefiting from their technology investments, with two-thirds of leaders expressing satisfaction with the value generated. 
• However, 78% of leaders admit to struggling to keep up with the fast pace of technological change, which leads to feelings of falling behind competitors.

This sense of "FOMO" (fear of missing out) often drives businesses to make quick, sometimes uninformed decisions to keep up with trends. The report highlights that, despite these pressures, many leaders are becoming more thoughtful in their approach. 

Rather than blindly following competitors, companies are prioritizing internal testing and pilot projects over simply copying what others are doing. In fact, tests and proofs of concept are now the second most influential factors in investment decisions, shifting the focus from a previous trend of mimicking competitors.

The growing role of data in measuring technological impact

The KPMG Global Tech Report 2024 also underscores the importance of data in making well-informed investment decisions. 52% of the respondents reported being proficient in using data effectively, an increase of 12 percentage points compared to the previous year. 

The ability to quantify the impact of technology investments is crucial for businesses to evaluate the potential return on investment (ROI) and avoid the "hype" surrounding new technologies. With the increasing maturity of data usage, companies can now make more informed decisions, track the success of their initiatives, and better align their tech strategies with long-term business goals.

This maturity in data analytics allows businesses to identify the true value of their tech investments, making it easier to separate genuine value from the rush to adopt trendy technologies. As organizations continue to refine their use of data, they are becoming more adept at creating business value and boosting competitiveness while mitigating the risks of over-investing in unproven technologies.

AI adoption: benefits, barriers, and challenges

One of the most notable aspects of the KPMG Global Tech Report 2024 is the widespread adoption of Artificial Intelligence (AI) in business operations. 

• While 74% of organizations reported deriving commercial value from their AI investments, only one in three businesses has successfully scaled AI solutions to full production. 

Despite these successes, the report reveals that AI adoption brings with it significant challenges, particularly concerning the workforce's perception of the technology.

• 78% of leaders  worry about employees viewing AI as a "black box,".
• 77% are concerned about the broader implications of AI, such as potential job losses or ethical issues. 

The report suggests that these concerns are valid, as organizations need to address these challenges to unlock AI’s full potential and ensure that their workforce is both prepared and reassured by the technology’s integration.

Moving forward, the challenge for businesses will be not just to adopt new technologies but to do so in a way that aligns with their goals, addresses workforce concerns, and creates sustainable value. As technology continues to evolve, the businesses that master these challenges will lead the charge in the digital age.