88% Business Leaders Plan To Increase Investment In AI Over 12–18 Months: Capgemini Report

Business leaders are starting 2024 with an increased level of optimism about their organisation's future growth compared to 12 months ago, according to a report released by the Capgemini Research Institute. The report showed that 56% of leaders retain confidence in their organisation's future growth despite current macroeconomic headwinds, up from 42% a year ago. However, less than one-third are optimistic about the global operating environment.

Business leaders are also increasingly realising the power of artificial intelligence and generative AI to drive innovation and unlock revenue growth, and 88% plan to focus on that technology.

The report explored the investment plans of 2,000 business leaders globally for the next 12–18 months. Customer experience, innovation, talent and skills, sustainability and supply chains are strategic business areas set to benefit from increased investment, the report showed.

“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,” said Capgemini CEO Aiman Ezzat.

Digital Technologies Key Focus Of Investment

Eighty-three percent of business leaders plan to increase investments in digital tools and technology, in particular AI, in the next 12–18 months. Leaders also expect that critical decision-making will be assisted by AI in five years from now. The life sciences industry leads the way, with nearly half of critical decision-making expected to be supported by AI in 5 years.

Cybersecurity is another focus area for investment, with 61% of business leaders considering cybersecurity threats a leading risk to business growth, up from 39% in 2023.

Organisations Plan To Increase Investment In Sustainability

As the business case for sustainability becomes clear, 52% of business leaders plan to increase investments in sustainability. Nearly half of the leaders expect climate change to be the biggest driver of operational disruption over the next decade, and hence, a lack of sustainable practices and processes will pose a long-term risk for organisations.

Two-thirds of business leaders said that the relentless pursuit of growth is incompatible with addressing the climate and ecological crisis. On a macroeconomic level, 38% acknowledged that businesses are likely to enter an era where there will be no growth due to the need for humanity to stay within planetary boundaries.

Talent And Workplaces Remain Key Priority

Scarcity of talent with the right skills ranks among the top business risks for nearly six in 10 organisations (up from a third last year). 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.