- Bain predicts that 77% of firms would either grow or maintain their technology expenditures in 2023, a decrease from last year when 90% of companies indicated they anticipated either raising or maintaining their tech budgets in 2022.
- It was discovered that firm investments in AI are increasing significantly, and 86% of technology suppliers believe AI is increasingly essential for winning market share and fostering customer loyalty.
Bain’s third annual global Technology Report, which is based on secondary market research, an analysis of financial data, and a variety of interviews with industry participants, has revealed that although many businesses are facing uncertainties as a result of current geopolitical and economic trends, these disruptions frequently result in advancements.
Bain predicts that 77% of firms would either grow or maintain their technology expenditures in 2023, a decrease from last year when 90% of companies indicated they anticipated either raising or maintaining their tech budgets in 2022.
With its report, Bain is sending a reminder to CIOs, CTOs, and other technology executives that, despite turbulent trends such as inflation and an impending recession, “technology will continue to play a central role in the global economy, helping to shape how companies in every sector create sustained value for customers and other stakeholders.”
The fact that more than 75% of the major venture capital investments in recent years went to IT infrastructure and industry-focused business software companies highlights the innovation potential, as reported by Bain.
AI investments are growing as the tech increases its market share
In addition to the results mentioned above, Bain discovered that firm investments in Artificial Intelligence (AI) are increasing significantly, and 86% of technology suppliers believe AI is increasingly becoming essential to winning market share and fostering customer loyalty.
Still, Bain estimates that just 20% of businesses have the technological infrastructure to maximize AI’s potential. Alongside other Web3 technologies, AI is engaging customers, influencing product development, and has the ability to alter industries. Although these technologies might offer benefits, Bain warns that ignoring Web3 capabilities can negatively affect enterprises.
Other technology trends covered by Bain
The almost 100-page study by Bain highlighted several other technological developments during the previous year. Competing and succeeding in a multi-cloud environment, scaling the industrial internet of things, boosting sales productivity during a recession, consumption-based pricing, and chip scarcity are all discussed.
Additional facts from Bain’s report are as follows:
- In the race between cloud hyperscalers (e.g., AWS, Google Cloud) and multi-cloud infrastructure software vendors (e.g., Snowflake, Twilio), customers are already voting with their wallets, allocating approximately 60% of their AI/ML budgets to hyperscalers’ tools versus 25% to multi-cloud ISV solutions.
- The number of enterprises creating proofs of concept for the industrial internet of things increased by about 20% between 2018 and 2022 and is projected to increase by another 20% by 2026.
- The future is bright for Software-as-a-Service (SaaS) firms that utilize consumption-based pricing: Around 80% of consumers report greater alignment with the value they receive from consumption pricing. And almost half of the software firms who use it say that it has helped them recruit more clients, while two-thirds report that it has helped them raise revenue with existing customers.