A new report from KPMG International and HFS Research has surveyed 900 technology executives to explore the current and future state of funding for emerging technologies.
Despite businesses cutting spending on emerging technologies, such as automation, artificial intelligence (AI), blockchain, and 5G, in the immediate aftermath of Covid-19 pandemic, a new report from KPMG and HFS Research says that investment is set to soar, as companies continue to accelerate digital transformation and stimulate long-term growth.
The new report, called Enterprise Reboot, is a collaboration between KPMG International and HFS Research, and it surveyed 900 technology executives across nine countries, including the US, Germany, U.K, Netherlands, Japan, Australia, India, France, and Canada.
"This crisis isn't affecting all industries equally, but for many of the industries facing crisis, managing the transition to a digital business model is imperative,” said Cliff Justice, Global lead for intelligent automation and US lead for digital capabilities at KPMG. “However, doing so is made more complicated in a time where investments are critical, but cash must be preserved.”
Investing in emerging tech
In the report 59 percent of executives surveyed said that the pandemic had led to a renewed impetus to accelerate their digital transformation initiatives, but four in 10 said that they will halt investment in emerging technology altogether as a result of Covid-19.
However, investments in a number of emerging technologies is expected to increase over the next 12 months, such as 5G, with 44 percent of respondents expecting spending to increase, compared to 26 percent who expect spending to decrease.
"Emerging technologies and new ways of working can play a significant role in the transformation to a more digital economy,” Justice said. “These technologies are helping companies maintain customer and stakeholder trust, keep remote workforces connected, ensure their business is resilient and prepared for disruptions, and build a strong foundation for future product and service innovation."
Other key findings include:
- Only 13 percent expected to "significantly increase" investments in emerging technologies amid COVID-19
- Organizations making the highest investments see greater returns than those making the smallest
- Nearly 65 percent of respondents believe that the combined use of emerging technologies is much more beneficial than using any of the technologies in isolation.
"Now more than ever, companies need to make smart investments in emerging technologies if they are to prevail in the medium to long term. Companies who don't, risk threatening their own survival," Justice concluded.