EMBRACING A BRIGHTER FUTURE: Investment PRIORITIES FOR 2024

The report confirms that technology and digital tools continue to be an important investment for companies with AI being highlighted as a key area of focus. Due to the recent acceleration of generative AI tools, many organisations are recognising the potential of generative AI as a tool to drive innovation, productivity, and revenue growth. Almost 9 in 10 organisations plan to focus on AI, including generative AI, within the next 12–18 months. 

The report also found that 52% of organisations are expected to increase their investments in sustainability. The importance of sustainability cannot be overstated and 61% of organisations view a lack of sustainable practices as an existential threat. Over half of the global business leaders who were surveyed for the report said that their companies will increase investments in clean technology in the US and Europe over the next two to three years. Economic incentives, like those offered by the Inflation Reduction Act in the US and the EU Green Deal Industrial Plan in Europe, are playing a pivotal role in driving sustainability investments. 

Supply chains are also predicted to be another prominent area for investment. Supply chain vulnerability is a concern for 41% of business leaders. This is in part because of the disruptions supply chains have faced in the past few years. Geopolitical and environmental factors, trade conflicts, and an over-reliance on China have caused major logistical issues in the past and could cause further issues going forward. To mitigate risks, 45% of business leaders are considering friend-shoring a significant portion of their sourcing or production in the future. Almost half (49%) are investing in emerging economies to reduce their dependency on China.