Leaders are preparing to ride the wave of new technologies inspiring innovation prospects; a slow regulatory response in this area has yet to curb enthusiasm.
Many executives say they are prepared for the impacts and opportunities the new artificial intelligence (AI) landscape will bring to their business, according to a new global report.
Building Global Ambition: C-Suite Barometer: Outlook 2024, a report from global accountancy firm Mazars, identified the emergence of new technologies as one of the key trends expected to greatly impact business this year.
The C-suite is ready to respond, according to the report, and 87% of executives believe their business is prepared for emerging technologies. Mazars surveyed 798 executives across seven regions in September and October last year.
“Transforming [their company’s] IT remains top of the agenda for business leaders, with one-third (32%) naming it a top strategic priority,” the report said. This is particularly true for respondents in North America, as 47% cite IT as a top priority.
However, 95% of C-suite leaders say more regulation is needed, the report said, and 39% of those executives say they have major ethical concerns about using AI.
Despite concerns that regulation is struggling to keep up with market demand, leaders are optimistic that the emerging tech landscape could bring new strategic opportunities for their organisations.
“The staggering ethical concerns expressed by three-quarters of C-suite executives already using AI across their business also doesn’t seem to have slowed down interest,” the report said. “Despite clear demand for more regulation and guidance globally, this has not challenged the appetite for many transformative technologies and efficiencies.”
Getting ready means improving security
Ethical considerations are not the only concern for C-suite leaders to be mindful of as technologies evolve.
Security risks are also top of mind for companies, the report noted. More technology comes with an increase in exposure, and expectations of cyber threats are on the rise. Forty per cent of C-suite executives now expect a data breach in their organisation in the next year, up from 32% one year ago.
“There’s been a steady decline in leaders’ overall confidence that their data is fully protected — 62%,
compared with 66% in 2023 and 68% in 2022,” the report said. “We can see why transforming IT is a top strategic priority for leaders in North America, with a noticeable drop in those who feel their organisation’s data is fully protected, from 77% to 44% this year.”
The report advises that organisations implement a stronger focus on continuity plans, as only 40% of organisations surveyed perform regular disaster response and recovery testing procedures,
and 46% have regular cybersecurity awareness training for employees.
Businesses could do more to protect their data, the report said. Three-quarters of organisations spend less than 20% of their IT budgets on security measures, the report said.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.
