Horváth: 66% of companies expect revenue growth through the use of AI

• Implementing AI will not come without costs, with 30% of companies expecting additional IT-related spending, and 5% anticipating an increase of at least 10% with AI solutions.
• The roles of IT executives will change over the next three years, as they increasingly take on responsibility for business process management.

The use of artificial intelligence (AI) will result in an increase in revenues, 66% of companies estimate, and 33% of them expect an increase of at least 10%, shows a study conducted by Horváth, a global management consulting company active on the Romanian market since 2005.

Entitled “Adaptive IT 7.0”, the objective of the study was to find out how the main IT managers in companies – Chief Information Officers (CIOs) or equivalent positions – relate to the challenges related to digital transformation, the advance of artificial intelligence, ESG implementation, the risks of cyberattacks and others. An adequate response to all these challenges will require the streamlining of the activity of IT departments and a gradual transformation of the roles performed today by CIOs. Thus, beyond those already listed, a major challenge is the fact that 54% of executives with IT responsibilities expect budget cuts in the coming years, while 10% of respondents anticipate an increase in innovation spending.

Faced with budgetary pressures, companies are investing in smarter and more automated solutions; thus, only 28% will use “all-in-one” solutions (down 12% from the previous edition of the study), while 41% (up 8%) will invest in specialized tools. SAP, ServiceNow and IBM remain the main providers, but niche solutions are rapidly gaining ground. In terms of priorities for companies, artificial intelligence (AI) and machine learning (ML) were indicated as essential for 77% of respondents, being implemented mainly in logistics (+8%), operations (+6%) and finance (+3%). However, AI integration is not without challenges: 69% of respondents anticipate significant efforts to ensure AI compliance and governance, and 61% consider data protection and security as major obstacles.

Revenue growth from AI implementation will not be achieved until investments are made. Thus, 30% of companies estimate a 5% increase in IT-related costs, and 18% expect a 10% increase in AI-related spending. Beyond growing revenues, sustainability and digital responsibility are becoming imperative for IT organizations.

Currently, only 24% of companies use advanced tools to automate ESG reporting, and 43% experience difficulties in complying with data protection regulations. However, 79% of organizations are aware of ESG requirements, but few (37%) have developed detailed strategies and comprehensive sustainability communication.

The changes are also affecting the role of CIOs: by 2027, only 18% of them will remain solely in technical roles, down from 39% today, and the majority (82%) will take on expanded responsibilities, such as Chief Digital and Information Officer (CDIO) or Chief Technology and Information Officer (CTIO). The CDIO role will grow by 8% and the CPIO (Chief Process Innovation Officer) will grow by 9%, while IT departments will increasingly take on responsibility for business process management, from 42% today to 57% in the next three years.

“The Horváth study shows that executives in the position of Chief Information Officers and IT specialists must adapt quickly to meet multiple challenges, and for the most part they are optimistic about the impact of artificial intelligence on the growth of companies’ revenues. Regardless of the size of the budgets or the difficulty of the challenges, the key to success is the adaptability of the team, with IT managers being the first to be called upon to assume new roles and anticipate the trends that will shape economic growth in the future,” said Maria Boldor, Partner and Managing Director, Horváth Romania.

The “Adaptive IT 7.0” study surveyed 312 respondents (42% executives and other IT managers), from over 15 industries, in eight countries.