73% of US CIOs Foresee Increase in IT Spends in 2024

Recognize, a technology investment platform that focuses exclusively on the tech services industry, has shared some interesting findings from its recent CIO survey. The Recognize CIO Survey series is a regular panel of 250-500 CIOs in the US.

The data from this survey helps track spending intentions, changes in technology, product preferences, strategic priorities, and talent challenges.

Key Findings:

  • Augmented IT Budget for the year 2024:

The survey explored organisations’ IT spends and budget plans. 73% of CIOs foresee an increase in their IT budgets for 2024, while 15% expect no change, and 12% predict a reduction, signalling an investment trend in the tech sector for the upcoming year.

  • Cyber/ Data security emerges as a leading priority among top three IT initiatives:

Upon analysing the IT Initiatives adopted by organisations, Cyber/ Data security tops the list with 36%. Following closely as the second-highest initiative is Artificial Intelligence with 35% responses, while the third ranking initiative is Cloud migration with 29%.

  • Rising adoption of LLM (Large Language Model) across organizations:

69% of organizations presently utilise Large Language Models (LLMs), indicating extensive adoption. However, 24% organizations are yet to implement this technology, and 7% are uncertain about their engagement with these advanced AI systems.

  • GPT -4 by Open AI emerges as the predominant adopted LLM:

Among the organizations employing large language models, GPT-4 by Open AI leads with 50% usage, followed by its predecessor GPT -3.5, at 19%.  Other models like Google AI’s PaLM 2, Anthropic’s Claude v1, and various offerings from the Technology Innovation Institute and Stability AI also see utilization, reflecting a diverse ecosystem of AI tools in the industry.

  • Future of AI: Impact of AI over companies in the next two years

Surveyors predict AI to substantially influence their organizations in the next two years, with 54% expecting significant use cases that drive productivity and 22% foreseeing a transformational impact, highlighting AI’s integral role in shaping future business operations.

Meanwhile, 19% of the CIO’s believe that AI’s impact is significant in certain use cases and does not impact greatly.

Interestingly, 6% of them perceive that AI does not make much an impact in driving productivity in their organisations.

  • A surge in the implementation of ERP projects across organizations:

Nearly half of the organizations surveyed, 47%, are already amid a major ERP project, while 37% are planning to initiate one in the next year. This indicates a significant commitment to enterprise system upgrades within the near future, with only 12% not engaging and 4% undecided.

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