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March 4, 2024 |

Logicalis 2024 CIO Report: AI and Security are Top Priorities for Driving Transformation

Troy, Mich., March 4, 2024 — Logicalis US, the leading global technology service provider, today released its tenth annual CIO Report, which reveals that AI, digital transformation and cybersecurity are the top priorities for tech leaders. According to the research, which surveyed over 1,000 CIOs globally, most (85%) organizations are investing in AI technologies with […]

Troy, Mich., March 4, 2024 — Logicalis US, the leading global technology service provider, today released its tenth annual CIO Report, which reveals that AI, digital transformation and cybersecurity are the top priorities for tech leaders. According to the research, which surveyed over 1,000 CIOs globally, most (85%) organizations are investing in AI technologies with transformative potential in 2024, despite economic uncertainty.

The study found that the majority of CIOs feel internal pressure to quickly seize new tech opportunities as 87% of respondents have already established AI workstreams and a similar number are investing in AI skills despite the technology being in the very early stages. 86% of CIOs have also kicked off formal AI policies for their companies.

In addition to AI, CIOs are facing a number of disruptive and challenging forces prompting them to continually reassess and rebalance priorities. Nearly all CIOs (95%) are facing barriers to implementing digital transformation, with many noting a lack of skills and digital vision.

Rapidly evolving cyber threats propelled by powerful technologies, such as quantum computing, are also a key concern for CIOs in 2024. Despite improving cybersecurity, 83% of businesses suffered a cyber-attack in 2023, resulting in significant business damage including unscheduled downtime, loss of revenue and customer data, and regulatory fines. As a result, confidence remains low with only 43% of CIOs feeling fully prepared for another breach.

“In 2024, we’re seeing a culmination of disruptive forces for the CIO, ranging from AI to advancing security threats,” said Logicalis US CEO, Jon Groves. “CIOs are facing the challenge of how to drive innovation and growth, while protecting their organizations from the evolving digital threat landscape. To be successful, future tech leaders need to have a diverse set of skills, from visionary thinking to strategic execution, becoming the master of the balancing act and choosing carefully where to focus.”

CIOs also recognized the importance of connectivity infrastructure in supporting innovative growth. The Internet of Things (IoT) and Private 5G were key investment areas highlighted by respondents, with 93% investing in or planning to invest in Private 5G for uses including improving customer and employee experiences, real-time inventory and asset oversight, connecting remote areas, and enabling new revenue streams.

Key findings on AI include:

  • Integrating AI technologies will be the number one priority for CIOs this year.
  • 86% are investing in AI skills and the same amount have kicked off formal AI policies.
  • 86% believe they will save costs throughout the organization as a result of implementing AI.
  • 85% have, or are planning, budgets solely for AI development and implementation.
  • 72% of CIOs are apprehensive about the challenges of regulating AI.

Key findings on security include:

  • Respondents believe malware and ransomware (41%) pose a significant risk to their organization over the next 12 months, with a slightly similar portion saying the same for data breaches (36%) and phishing (35%).
  • Of the 83% who experienced a cyber-attack in 2023, the following were almost as equally common: fraud, third party-related compromise, hacktivism/website/social media defacement, denial of service/sabotage, data exfiltration, ransomware/extortion, and cryptojacking.
  • Almost all of those who experienced an attack faced a relatively equal range of consequences: unscheduled downtime, reputation damage, loss of revenue, loss of customer data, loss of employee data, regulatory fines.
  • Only 43% of CIOs feel their business is completely prepared to handle another major security breach.

Key findings on connectivity include:

  • For 75% of CIOs, connectivity infrastructure is a barrier to implementing IoT initiatives.
  • 93% of CIOs reported investing in or planning to invest in Private 5G for uses including improving customer and employee experiences (55%), real-time inventory (50%) and asset oversight (48%), connecting remote areas (48%), enabling new monetization models (43%), predictive maintenance (40%), and robotics (28%).
  • 98% of CIOs are currently operating IoT initiatives such as workplace safety, remote monitoring, and asset tracking.

Key findings on digital transformation include:

  • 85% of CIOs state spending on digital transformation will increase in 2024
  • For the majority of respondents, spending across the following areas is set to increase: Digital Transformation, Customer Experience, Supply Chain Resilience, Risk Management, ESG, Talent Management, Business Automation and Efficiencies, Outsourced IT Management, Cloud Operating Costs
  • Nearly all (95%) face barriers in digital transformation, the top three being: the availability of skills, lack of clear digital vision, and security concerns.

To see the full report, go to https://www.us.logicalis.com/cio-report

About the research

The 10th annual Logicalis CIO Survey is based on interviews of 1,000 business and IT professionals across EMEA, APAC, US, and South America conducted at the end of 2023 by an independent market research organization. Only respondents from organizations with over 250 employees and involvement in digital transformation and cloud computing were interviewed.

About Logicalis US

We are Architects of Change™. We help organizations succeed in a digital-first world. At Logicalis, we harness our collective technology expertise to help our clients build a blueprint for success, so they can deliver sustainable outcomes that matter.

Our lifecycle services across cloud, connectivity, collaboration, and security are designed to help optimize operations, reduce risk and empower employees.

As a global technology service provider, we deliver next-generation digital managed services, to provide our clients with real-time visibility and actionable insights across the performance of their digital ecosystem including; availability, user experience, security, economic performance, and sustainability.

Our 7000+ ‘Architects of Change’ are based in 27 countries around the globe, helping our 10,000+ clients across a range of industry sectors, create sustainable outcomes through technology.

Logicalis has annualized revenues of $1.7 billion, from operations in Europe, North America, Latin America, Asia Pacific, and Africa.

It is a division of Datatec Limited, listed on the Johannesburg Stock Exchange, with revenues of over $4.6 billion.

For more information visit https://us.logicalis.com


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