E&Y Survey: Companies are Throwing Money at Tech to Stay Ahead of Competitors

Entrepreneurs can’t throw enough money at technology to stay ahead of their competitors.

A recent CEO survey by Ernst & Young shows that business leaders are investing more and more on tech solutions, particularly AI, in a bid to be more competitive and efficient than their rivals.

Nearly half of CEOs surveyed (47%) said that investing in tech is a priority for their organizations over the next 12 months, according to E&Y’s survey.

In the Americas, approximately 34% of CEOs indicated that technology is reshaping their industries, compelling them to transform their businesses.

Business leaders fear that not dedicating enough capital to technology will see them fall behind their competitors. More than 40% of CEOs specifically mentioned plans to use AI to drive efficiency and improve business performance.

“There is a clear desire to exploit the potential of technology and AI to improve efficiency,” noted the report.

Around three-quarters of CEOs agreed that AI will enhance efficiency, although they believe it will have little impact on revenue growth.

“CEOs are balancing defensive actions on short-term pressures with longer-term imperatives. The most compelling immediate actions focus on technology to improve growth and productivity, as well as boosting data management and cybersecurity to protect against cyber threats,” said Andrea Guerzoni, EY Global Vice Chair.

CEOs and private equity fund managers are also optimistic about the mergers and acquisitions (M&A) outlook for 2024, with a significant majority expecting a resurgence of mega deals.