- AI takes the lead in technological spending, with 47% of companies prioritizing it as per CNBC's recent survey.
- AI investments accelerate despite rising interest rates and slowdown in overall spending, indicating its boom in 2023.
- Businesses see potential in generative AI for multiple applications, from healthcare reports to customer relationship management.
The artificial intelligence (AI) explosion is proving to be a worldwide phenomenon, with a whopping 47% of companies, as per CNBC's survey, prioritizing AI in their technological expenditure for the upcoming year. This places AI investment at over double that of cloud computing, which came in second at 21%.
This insight emerged from CNBC's recent Technology Executive Council bi-annual survey, compiling responses from the high-ranking tech authorities beyond the tech realm, including chief information officers, chief technology officers, and chief information security officers across various sectors like marketing, pharmaceuticals, telecom, utilities, and even public entities.
Most strikingly, nearly two-thirds of these companies are reporting an acceleration in their AI investment, despite 53% acknowledging that rising interest rates have slowed their overall spending. However, AI has experienced a boom in 2023, propelling tech stocks upwards. There has been a significant drop in tech executives worrying about cost-cutting measures in fear of a potential recession compared to the previous year, from 30% to 16%. More emphasis is now being placed on satisfying customer demand for tech-driven products and solutions, up from 9% to 26%.
The survey was carried out between May 15 and June 20, during which time Nvidia surpassed the $1 trillion market cap mark for the first time, owing to a forecasted sales boom of $11 billion for Q2 2024, bolstered by demand for its graphics processors that fuel AI applications.
Businesses are already reaping the benefits of AI, with many utilizing generative AI in various fields. The application of generative AI ranges from writing patient safety reports and clinical narratives to revolutionizing customer relationship management. While some businesses are still in the early stages of AI integration, the anticipation for its potential capabilities is high. However, despite this enthusiasm for AI, it's important to acknowledge that 63% of companies still regard cloud computing as critical to their tech strategy in the coming year.
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