A survey of 1,000 CIOs reveals that AI and cybersecurity are driving transformation. Smart factories exemplify the challenges.
2024 will be a big year for digital transformation, according to a new survey published yesterday by technology service provider Logicalis. But it won’t be an easy one.
Logicalis’ tenth annual CIO report, based on the feedback of more than 1,000 chief information officers worldwide, reveals that 85% of CIOs plan to increase spending on digital transformation in 2024.
An even more forceful statistic, but one that hardly surprises, is that nine in ten leaders plan to integrate artificial intelligence (AI) into their organizations in 2024. Already 87% of CIOs have established AI workstreams and 86% have implemented formal AI policies for their companies, according to the report.
Perhaps the clearest takeaway of the survey, however, is that it’s not an easy time to plan for technology changes.
“In 2024, we see multiple disruptive forces for the CIO, ranging from AI to security threats,” said Logicalis US CEO Jon Groves in a company press release. “CIOs are facing the challenge of driving innovation and growth while protecting their organizations from the evolving digital threat landscape.”
This challenge is particularly pronounced for manufacturers, who are continuing to digitally transform their operations in a booming smart factory market. A recent market research report from Technavio, Global Smart Factory Market 2023-2027, forecasts that the market will grow by $73.68 billion over the forecast period, representing a CAGR of 9.26%.
Smart factories, which include technologies such as industrial internet of things (IIoT) sensors, connectivity solutions, cloud computing and, increasingly, AI, are a prime example of the urgency and difficulty of digital transformation. The cybersecurity of these facilities is one of the biggest challenges. The Logicalis survey reveals that a shocking 84% of CIOs experienced a cyberattack in 2023, and most CIOs expect a cyberattack to result in significant business damage, including unscheduled downtime, reputation damage, and loss of revenue and customer data.
Security concerns rank among the top three barriers to digital transformation, according to the Logicalis survey, but the other two may be even harder to solve: the availability of skills and the lack of a clear digital vision. To thrive in the digital era, technology leaders in manufacturing and beyond may have to think beyond the technology.
“To be successful, CIOs need a diverse skill set,” said Groves. “The range of skills includes visionary thinking, strategic execution, and choosing carefully where to focus.”
