A recent report from CI&T, in collaboration with the Global CxO Institute, reveals that only 7% of European businesses are meeting or exceeding their digital transformation targets.
The report, ‘Accelerating Digital Efficiency With The AI Multiplier’, is based on a survey of 100 digital business leaders from European enterprises. It uncovers that, despite increasing technology budgets, with 59% of organisations reporting budget increases in 2023 and a further rise expected in 2024, many businesses are failing to achieve their desired operational improvements and financial returns.
To optimise their technology operations, 91% of businesses acknowledge the need for enhanced efficiency across their technology operations. The key areas identified for efficiency improvements include IT and data strategies, data management, customer operations and service platforms, cyber security, and eCommerce and payment platforms.
The study identifies AI, including generative AI, as a crucial factor for efficiency improvements, with 80% of respondents expecting a positive impact on their business. Investment in AI is already a priority, with 76% of businesses either using generative AI or planning to do so in the next 12-18 months, and 8% reporting widespread use across their organisations.
Businesses see generative AI contributing significantly to organisational efficiencies in technology architecture and platforms, end-user product features, organisational orchestration, innovation development, and the software development process.
Organisations are also focusing on accelerating innovation to introduce new products and services, an area where AI and generative AI can significantly impact. The top five areas targeted for efficient innovation delivery include business case development/KPI setting, proposition development, service mapping and design, scaling a Minimum Viable Product (MVP) to full release, and scaling Proof of Concept to MVP.
Ross Sleight, Chief Strategy Officer EMEA at CI&T, emphasises the importance of consistent investment in digital transformation and digitising operations. He cautions against over-reliance on AI, stating, “AI isn’t a magic solution. For AI to have a lasting impact, it needs a foundation of organisational efficiency.”
The research methodology involved surveying 100 senior business leaders in digital and technology operations across six European countries, representing companies with annual revenues exceeding £100 million.
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