Many companies around the globe are still testing the waters when it comes to using new technologies. The sixth annual EY Reimagining industry futures study dives into this issue, highlighting the hurdles they face.
The research surveyed 1,635 businesses in November 2024, including participants from the UK (9%), Germany (6%), and the US (20%). They represented a mix of sectors: financial services (13%), automotive and transport (13%), energy, mining, and utilities (13%), and manufacturing (12%).
This year’s report zeroes in on 5G and the Internet of Things (IoT), consistent with previous studies. The lead authors, Rob Atkinson and Adrian Baschnonga, emphasize the need for businesses to move beyond trials. The findings show that nearly half of the respondents—47%—are investing in generative AI (GenAI), a slight increase from 43% last year. Meanwhile, investment in IoT sits at 43%, with 5G trailing at 33%, reflecting growth from last year’s numbers.
But here’s the catch: businesses have a tough time transitioning from testing these technologies to real-world applications. Only 1% of organizations are actively using GenAI. Despite more investment in IoT, active deployments are actually decreasing, dropping to 16% from 19% last year. Edge computing deployments are stagnant at 22%.
The study also highlights a shift in decision-making within companies. Now, 49% of CEOs are involved in technology strategy and supplier selection. Companies with CEO engagement in tech decisions are seeing progress. For instance, 51% of these organizations invest in GenAI, compared to 44% where the CEO is less involved.
Atkinson points out that sticking to trial phases limits companies from reaping the full benefits of integrated technologies. Most respondents—73%—want to better understand the evolving landscape of IT suppliers. Over half—56%—acknowledge they don’t grasp who their technology suppliers are partnering with. Awareness of new mobile capabilities like network APIs and network slicing is low, at 32% and 26%, respectively.
Baschnonga adds that while organizations see collaboration as key to accessing new skills, they struggle to navigate the changing supplier ecosystems. He suggests that suppliers focus on building solid alliances and refining their go-to-market strategies.
The ability to scale and integrate technologies stands out as important to 25% of respondents. They plan to narrow down their suppliers, which puts pressure on ICT providers to frame themselves as capable orchestrators of larger ecosystems that offer comprehensive solutions.
As firms lean toward cutting-edge technologies like GenAI, IoT, and 5G, they find it challenging to translate these investments into value. It’s vital that IoT providers present themselves as partners aiding in digital transformation.
The report also indicates that sustainability is becoming a significant factor in enterprise IT decisions, particularly concerning datacenters. Many organizations are unaware of their datacenters’ emissions profiles, with half acknowledging this lack of awareness.
When it comes to GenAI use cases, cyber security and data governance are major concerns. About 50% cite cybersecurity as a top barrier, while 46% flag data governance and ethical issues as critical hurdles.
Interestingly, views on GenAI applications differ by sector. For instance, manufacturing leaders worry most about data governance, whereas respondents from consumer and energy sectors prioritize productivity gains.
Upskilling employees and fostering collaboration between business functions are among the most crucial steps organizations can take. Interestingly, German businesses prioritize upskilling, while Chinese firms focus on enhancing collaboration across functions. Indian and Japanese companies are more inclined to strengthen ties with suppliers.