As artificial intelligence continues to reshape the digital landscape, CIOs and IT leaders are at a pivotal point, tasked with navigating the profound opportunities and challenges this disruptive technology presents.
The CIO Priorities 2024 report from Info-Tech Research Group explores the critical capabilities and initiatives CIOs must prioritise to effectively leverage generative AI.
Drawing from the insights of the firm’s Tech Trends 2024 report, the CIO Priorities 2024 report includes a comprehensive industry analysis and outlines five key initiatives poised to drive significant value across diverse organisational contexts in 2024.
Info-Tech Research Group’s CIO Priorities 2024 report highlights the top five priorities that CIOs must consider in 2024 and beyond to launch exponential value creation.
Info-Tech’s research offers a strategic roadmap for CIOs and IT leaders to not only address but capitalise on the transformative potential of generative AI, ensuring their organisations can thrive amid the surging exponential growth of technological innovation.
‘In our assessment of the 2024 IT landscape, generative AI emerged as the clear trend, a focal point of our Tech Trends 2024 report,’ states Brian Jackson, Principal Research Director and lead analyst for the report.
‘This technology introduces significant opportunities and challenges. The critical question for CIOs and IT leaders is which capabilities need enhancement to leverage these opportunities and which initiatives should be prioritised to navigate the accompanying enterprise risks effectively.’
According to the CIO Priorities 2024 report, the 2024 landscape demands that CIOs and IT leaders transcend traditional IT management roles to become the drivers of innovation, with generative AI serving as the critical vehicle in this journey.
This evolution necessitates a comprehensive evaluation of organisational capabilities, identifying areas ripe for AI-driven transformation. The research emphasises that this transformation is about reimagining processes, unlocking new efficiencies, and navigating the complexities of integrating such advanced technology. The report provides a strategic framework to navigate this intricate landscape, empowering IT leaders to fully leverage generative AI’s potential within their organisations.
‘For organisations in the Asia Pacific region, the journey towards digital transformation through generative AI is not just about technological adoption but understanding and leveraging the regional specificities that define our diverse markets.,’ says George Khreish, Managing Partner, APAC.
Published in February 2024, the report is informed by extensive research, including Info-Tech’s Future of IT survey and in-depth interviews with CIOs from a diverse range of industries and geographical locations.
This comprehensive approach ensured a broad level of insights, capturing the experiences of leaders from large organisations with over 2,500 employees to smaller entities and spanning IT budgets from under $1 million to over $100 million.
The following priorities are what the firm recommends be top of mind for CIOs and IT leaders over the coming months:
- Augment the Business with Generative AI. The firm’s survey findings indicate a cautious approach toward adopting new generative AI features among organisations, particularly those with lower IT maturity.
This caution is possibly due to vendor risk or intellectual property concerns. In contrast, high IT maturity firms are more proactive, with more than half reporting either planning to apply for beta access to new features or planning to move ahead upon their general availability.
CIOs and IT leaders need to strategically integrate Gen AI capabilities into business processes, deciding whether to develop in-house solutions or procure them. - Right-Size AI Governance. The report explains that organisations are facing a balancing act with risk management and fostering innovation. When asked about who is responsible for AI governance, 30% of respondents from both high and low IT maturity organisations reported that it is the role of the CIO. Furthermore, only 20% of low IT maturity and 32% of high IT maturity organisations stated that they use explainable models as part of their AI governance.
This year, CIOs and IT leaders must design and establish AI governance frameworks that provide necessary oversight and specific policies that align with existing risk management practices without imposing bureaucracy and auditing that stifles innovation. - Update Vendor Risk Assessments. The research underscores the increasing threat of supply chain attacks, where cybercriminals exploit vulnerabilities in the software tools and services used by organisations. This threat makes companies susceptible to the risks of their vendors.
Survey results indicate that IT leaders from both low and high IT maturity groups perceive third-party vendor vulnerabilities as a moderate concern, rating it as a 3 out of 5, potentially underestimating the risks. According to the survey, 51% of low IT maturity organisations plan to increase their cybersecurity budget by 1%-10% over the previous year, while that number is at 38% for high IT maturity organisations.
To mitigate these threats, especially those related to AI, Info-Tech advises that CIOs and IT leaders establish or update their vendor risk assessment programs to include AI-specific considerations. - Exponentially Increase Innovation. According to the survey data in the report, CIOs identified innovation as a key driver for maintaining competitiveness and enhancing customer and employee experiences. Survey data shows that 46% of high IT maturity organisations have conducted a pilot or done more advanced integration of AI into the business, compared to only 27% of low IT maturity organisations.
Despite AI being earmarked as a primary area for new investment in 2024, many organisations report not having conducted proofs of concept or pilots with AI to validate business cases. Nearly 50% of high IT maturity firms have already invested in AI and plan to invest more in 2024 versus 30% of low IT maturity firms.
To harness AI’s full potential, CIOs and IT leaders must prioritise expanding their exploration of AI use cases, moving from ideation to pilot testing more rapidly. - Exponentially Improve Customer Experience. Analysis of the survey data reveals that IT leaders are moderately concerned about potential disruptions to their organisations due to changing customer behaviours, second only to cybersecurity incidents. With 60% of respondents emphasising customer relations and 59% focusing on customer service in their digital transformation efforts, the emphasis on customer-centric areas is evident.
CIOs recognise the potential of AI to significantly improve customer interactions, either by refining the way their organisations connect with customers or by integrating AI into ongoing digital transformation efforts.
By embedding AI into customer journey interactions, CIOs and IT leaders can automate, augment, and reduce friction at every point of the customer journey, accelerating service delivery and enhancing overall satisfaction.
