While macroeconomic uncertainties are forcing the hands of corporations to reduce their budgets, Chief Financial Officers (CFOs) remain keen to increase spending on IT and digital transformation.
According to a report by Grant Thornton, IT and digital transformation with emerging technologies will receive massive capital injections in 2025. The report surveyed 226 CFOs based in the U.S., tracking their proposed budgetary allocations amid an uncertain business climate.
63% of CFOs say improving digitization of their company operations is at the top of the pyramid. Firms say the IT side of things will take up a chunk of their budget as they seek to optimize costs and improve productivity.
“Digital transformation allows you to be more proactive in terms of scenario planning and how you can cope with this continuing shift of environment,” said Paul Melville, Grant Thornton’s national advisory managing principal for advisory services.
Over 60% of surveyed CFOs reveal that their firms are overhauling their IT and digital arms, while the third is content with system upgrades. CFOs are paying attention to the cost implications of a total tech overhaul.
For emerging technologies, smart contracts and generative AI are considered low-hanging fruits for firms keen on digital transformation.
A common denominator across responses indicates that customer satisfaction and experience drive the incoming digital transformation. Less than 4% of CFOs say their IT and digital transformation is not powered by customer experience.
Outside of digital transformations, 48% of CFOs say they will increase cyber risk and security spending, while 46% reveal increased workforce compensation and benefits. Furthermore, 42% of respondents have their sights on staff training, with only 17% increasing spending on diversity and inclusion.
Emerging technologies adoption gets popular
Artificial Intelligence’s rapid rise has seen corporations race to integrate the technology into their operations. In 2024, a Lenovo (NASDAQ: LNVGF) research reveals that several Chief Information Officers (CIOs) are making grand plans to adopt generative AI, with 39% possessing the infrastructure to pivot.
However, CIOs are worried about the AI rush by firms keen on avoiding catching up to their peers. Others are concerned about the rate of return on investment (ROI) on AI technologies.
“Rushing to ship some underdeveloped AI solutions in your product pipeline because of FOMO is not a good idea,” said Arkreach CTO Neeraj Kumara at the time.
Cisco also reported that Saudi Arabian companies were poised to integrate AI with advanced strategies last year.
Singapore’s COOs are tipping AI and IoT to power their digitization ambitions in 2025
Another report has highlighted a growing trend by Chief Operating Officers (COOs) in Singapore leveraging emerging technologies to boost their digitization ambitions in 2025.
A study by EY Reimagining Industry Futures revealed that over half of Singaporean enterprises are investing in emerging technologies to improve the scope of their operations. Per the report, AI and the Internet of Things (IoT) are recording staggering adoption figures among businesses in the Southeast Asian country.
Unlike 2024’s report, IoT is garnering the attention of COOs, with 54% of executives turning their attention to the next-gen technology. However, only 54% of firms are keen on increasing their AI investments over the year, while blockchain occupies a lower position.
With AI, generative AI is taking the lead, forging new use cases across several industries. The EY report highlights soaring use cases across the automotive, energy, financial services, manufacturing, and healthcare sectors.
In the energy, technology, and automotive sectors, generative AI is seeing significant action in software development and testing, as well as in customer sales and service support. Other thriving use cases include AI-based legal and financial services, supply chain management, and fraud prevention.
Surveyed respondents disclose a real challenge in implementing emerging technologies into their operations, moving beyond the proof-of-concept stage.
“While enterprises are keen to invest in emerging technologies, many struggle to bridge the gap between pilot and full-scale implementation,” said Joongshik Wang, EY’s Strategy and Execution Leaders.
The report offers suggestions for COOs to smoothen the curve for AI and IoT adoptions for Singaporean-based enterprises. It suggests that COOs foster strategic supplier relationships to sidestep supply chain deficiencies.
Furthermore, COOs are urged to focus on measurable outcomes beyond technological innovation.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.
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Source: https://coingeek.com/63-of-cfos-to-increase-it-digital-transformation-investments/