**London**: A recent EY report reveals that while nearly half of organisations are investing in generative AI, many are struggling to implement these technologies fully, with a notable drop in active IoT deployments and evolving roles of CEOs in technology decisions.
A recent report by EY, titled “Reimagining Industry Futures,” highlights a growing trend in investments towards emerging technologies among businesses, revealing significant insights into the current state of enterprise technology adoption. The survey, which evaluated over 1,600 organisations, found that nearly half (47%) are investing in generative AI (genAI), with other technologies like the Internet of Things (IoT) and 5G also attracting considerable financial backing, noted by 43% and 33% of firms respectively.
Despite this increasing investment, EY’s findings indicate a struggle for many organisations to move from pilot projects to full-scale deployments of these technologies. The analysis revealed a concerning decline in active IoT deployments, which dropped to 16% in 2024 from 19% the previous year. Meanwhile, deployments of edge computing have remained stagnant at 22%, and only 1% of organisations reported having active investments in genAI.
The report points out a changing dynamic in decision-making processes within enterprises, as the role of C-suite executives evolves. Notably, 49% of CEOs now play a crucial role in shaping emerging technology strategies, including selection of suppliers. Businesses with CEOs involved in technology decisions are making more significant strides; for instance, 51% of such organisations are investing in genAI compared to 44% where the CEO has lesser involvement.
Rob Atkinson, EY UK&I’s technology market leader, articulated the implications of these findings. He indicated that a failure to progress past the trial phase could hinder businesses from realising the long-term value of technology investments. He stated, “As well as posing a challenge to unlocking long-term value, a failure to progress beyond the trial phase means businesses risk missing out on the combined impact of different technologies deployed together.”
Furthermore, the report sheds light on the difficulties organisations face in navigating the landscape of technology suppliers. Approximately 73% of businesses expressed a need for a better understanding of supplier options, with more than half indicating a lack of knowledge regarding their technology vendors’ partner networks. This uncertainty has generated frustrations, prompting some enterprises to consolidate their technology suppliers. The survey indicated that about 35% of firms intend to reduce their number of ICT vendors over the next year to enhance security, cut costs, and simplify technology management.
To stay relevant, ICT suppliers are encouraged to evolve their strategies. EY found that a third of respondents prefer vendors that can demonstrate measurable business outcomes and provide access to broader partner ecosystems. The importance of scaling and integrating technologies also emerged as a priority for 25% of firms, illustrating a preference for comprehensive solutions beyond mere cost considerations.
Atkinson noted, “The intention to focus spending on a smaller number of key suppliers makes it even more important that ICT providers present themselves as effective ecosystem orchestrators”. He highlighted the need for IoT suppliers to rethink their roles as holistic partners in digital transformation efforts.
The outlook presented in EY’s report reflects both the enthusiasm for advanced technologies and the challenges enterprises face in translating these investments into tangible business value.
Source: Noah Wire Services
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