Gen AI and Predictive Analytics See Major Business Investment, Endava Report Finds

In the tech sector, most decision-makers are opting for technologies that provide noticeable, near-term benefits, according to Endava's 2024 Emerging Tech Unpacked Report, which launched today. This report explores the new and emerging technologies in which business leaders are investing and highlights a clear preference for tools that enhance operational efficiency.

The survey, conducted among nearly 700 organizations globally spanning various sectors and sizes, shed light on AI and generative AI emerging as top priorities for businesses. The findings revealed a remarkable trend, with just 1% of respondents indicating unfamiliarity with AI technologies, and less than 3% deeming them irrelevant to their operations. This underscores the widespread acknowledgment of AI's potential to revolutionize business processes, drive efficiency, and catalyze innovation across industries.

Big data and predictive analytics were the third and fourth highest priorities, respectively. Over a third of respondents are already implementing these technologies, with another 30% in the process of doing so. The Internet of Things (IoT) was the fifth-highest priority, with 40% of participants already using IoT in some capacity, making it the most widely implemented technology in the study. This widespread adoption underscores the value businesses see in these technologies for improving efficiency, driving innovation, and gaining a competitive edge.

The report also highlights a cautious approach from business leaders towards investing in more speculative technologies. For instance, while nearly 50% of respondents ranked AI as one of their top three initiatives and 43% did the same for generative AI, only 17% have implemented a strategy for the metaverse, despite 53% acknowledging its moderate to high relevance. This suggests that while there is recognition of the potential impact of emerging technologies, many organizations are prioritizing investments that promise more immediate and tangible benefits.

Environmental stewardship has evolved from a trend to a significant driver for businesses. Almost three-quarters of respondents rated Environmental, Social, and Governance (ESG) criteria as relevant to their operations, with customer attraction and operational efficiency cited as the main motivators. However, only 17% of respondents have an ESG implementation strategy in place.

Endava's CTO, Matthew Cloke, commented on the findings: "As the global economy has faced a great deal of uncertainty in recent years, business leaders are focused on ensuring that their investments are placed in technologies which are most likely to provide near-term tangible benefits and resilience."

This report suggests a strategic shift in the tech sector towards practical, immediately beneficial technologies, reflecting a pragmatic approach in an uncertain economic climate. Business leaders are prioritizing investments in AI, generative AI, big data, predictive analytics, and IoT—technologies that promise to enhance operational efficiency and deliver quick, tangible results. This focus on near-term gains highlights a cautious investment strategy, steering away from more speculative technologies like the metaverse, despite recognizing their potential relevance. The emphasis on technologies with clear and immediate benefits aligns with the need for resilience and stability in a challenging economic environment.