73% of organizations in the US foresee an increase in their IT spending in 2024

  • Cyber and data security are emerging as the leading priority.
  • 69% of organizations presently utilize Large Language Models (LLMs), of which 50% of organizations have adopted GPT- 4 by Open AI 

Recognize, a technology investment platform focusing exclusively on the tech services industry has shared some interesting findings from its recent CIO survey. The Recognize CIO Survey series is a regular panel of 250-500 CIOs in the US. 

The data from this survey helps track spending intentions, changes in technology, product preferences, strategic priorities, and talent challenges.

Key Findings: 

  • Augmented IT Budget for the year 2024:

The survey explored organizations’ IT spending and budget plans. 73% of CIOs foresee an increase in their IT budgets for 2024, while 15% expect no change, and 12% predict a reduction, signaling an investment trend in the tech sector for the upcoming year.

  • Cyber/ Data security emerges as a leading priority among the top three IT initiatives: 

Upon analyzing the IT Initiatives organizations adopt, Cyber/ Data security tops the list with 36%. Following closely the second-highest initiative is Artificial Intelligence with 35% responses, while the third ranking initiative is Cloud migration with 29%.   

  • Rising adoption of LLM (Large Language Model) across organizations:

69% of organizations presently utilize Large Language Models (LLMs), indicating extensive adoption. However, 24% of organizations are yet to implement this technology, and 7% are uncertain about their engagement with these advanced AI systems.

  • GPT -4 by Open AI emerges as the predominant adopted LLM:

Among the organizations employing large language models, GPT-4 by Open AI leads with 50% usage, followed by its predecessor, GPT -3.5, at 19%.  Other models like Google AI’s PaLM 2, Anthropic’s Claude v1, and various offerings from the Technology Innovation Institute and Stability AI also see utilization, reflecting a diverse ecosystem of AI tools in the industry.

Future of AI: Impact of AI on companies in the next two years 

Surveyors predict AI will substantially influence their organizations in the next two years, with 54% expecting significant use cases that drive productivity and 22% foreseeing a transformational impact, highlighting AI’s integral role in shaping future business operations.

Meanwhile, 19% of the CIOs believe that AI’s impact is significant in certain use cases and does not impact greatly. 

Interestingly, 6% of them perceive that AI does not make much an impact in driving productivity in their organizations.

  • A surge in the implementation of ERP projects across organizations:

Nearly half of the organizations surveyed, 47%, are already amid a major ERP project, while 37% plan to initiate one next year. This indicates a significant commitment to enterprise system upgrades soon,with only 12% not engaging and 4% undecided.

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