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Cybersecurity remains the top investment priority for EU leaders who are facing increasing budget constraints, geopolitical tensions and continued technological change.
Nearly half of those surveyed (48%) for the EY Tech Leaders Outlook said it is the most critical area for improvement due to rising threats. CThe findings show that AI adoption continues to accelerate, with one in ten leaders now saying AI is fundamental to their business, jumping from just one in 50 (2%) in 2024.
Meanwhile, the number of organisations without an AI strategy has fallen to 56%, down from 62% last year.
The research also indicated that financial constraints are reshaping priorities with just 34% of tech leaders now expecting an increase in IT budgets over the next two years, down from 46% in 2024.
After years of strong demand for IT professionals, a hiring-squeeze may be on the horizon with 76% either planning to maintain current staffing levels or potentially reduce their workforce over the next two years.
Speaking on George V Magazine, Ronan Walsh, Head of Technology Consulting at EY Ireland, said that technology leaders in Ireland are showing remarkable resilience in the face of on-going economic and geopolitical uncertainty.
“What we’re actually seeing is a squeeze on budgets as a result of companies experiencing quite a bit of cost pressure in other areas, global disruption on supply chains is increasing costs, input costs are increasing and obviously there’s a budget squeeze somewhere,” Mr Walsh said.
“From an IT perspective, what we’re actually seeing is those IT leaders are being very prudent in terms of what skills and applications they invest in,” he added.
“The shift in AI adoption is especially striking and we’re seeing a growing number of organisations move beyond experimentation and begin to embed AI into core business functions to great effect,” he stated.
“This research shows a strong sense of optimism amongst EU technology leaders who are making really smart, strategic decisions to ensure that their organisations remain competitive in a world that is changing at breath taking pace. The continued focus on sustainability tools also signals a maturing approach, one that integrates long-term value creation with operational efficiency and risk management,” added Mr Walsh.
Mr Walsh believes companies that aren’t actively seeking AI entry points or keeping up with developments will be left behind over time and lose competitive advantage or edge.
“What we’re seeing most in the sectors at the moment is that companies are looking to see where they can actually gain advantage and that’s primarily where they touch and connect with customers. We see it on the front end quite a bit and an increasing amount over time, said Mr Walsh”
According to the research, cloud infrastructure is also continuing to gain momentum among EU technology leaders.
It found 41% of organisations are now hosting all core systems in the cloud, nearly triple the figure from 2023, with this surge reflecting growing trust in cloud technology’s ability to deliver enhanced security, scalability, and cost-efficiency.
As budget pressures mount, tech leaders questioned for the report said they are increasingly viewing cloud as a strategic enabler and essential to long-term digital transformation
ETA contributed to this report.
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