73% of organisations in the US foresee an increase in their IT spends in 2024

• Cyber and Data security emerges as the leading priority.
• 69% of organizations presently utilise Large Language Models (LLMs), of which 50% of organisations have adopted GPT- 4 by Open AI

…pointers from a US-based CIO survey for Indian IT vendors 

Recognize, a technology investment platform that focuses 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 organisations’ IT spends 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, signalling an investment trend in the tech sector for the upcoming year.

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

Upon analysing the IT Initiatives adopted by organisations, Cyber/ Data security tops the list with 36%. Following closely as 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 utilise Large Language Models (LLMs), indicating extensive adoption. However, 24% 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 over companies in the next two years

Surveyors predict AI to 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 CIO’s 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 organisations.

• 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% are planning to initiate one in the next year. This indicates a significant commitment to enterprise system upgrades within the near future, with only 12% not engaging and 4% undecided.

About Recognize:

Recognize is a technology investment platform exclusively focused on the technology services industry. Tech services firms envision, build, configure, manage, and operate software and business processes to deliver digital outcomes for enterprises. The firm provides operational expertise, industry insights, and strategic capital to innovative companies in this sector. Recognize is led by industry veterans Frank D’Souza, Raj Mehta, Charles Phillips, and David Wasserman. To learn more, visit www.recognize.com.

This communication (“Information”) is being furnished by Recognize Partners LP (“Recognize” or the “Firm”) to the recipient (“you”) solely for informational purposes. This Information is not, and may not be relied on, in any manner, as legal, tax, investment, accounting or other advice.  This Information is not, and should not be construed as, an offer of investment advisory services by Recognize, nor as an offer to sell (or a solicitation of an offer to buy) an interest in any investment sponsored by or affiliated with Recognize.  The Information is not an endorsement of any particular security or investment opportunity. 

Certain information contained in this Information has been obtained from published and non-published sources prepared by other parties, which in certain cases has not been updated through the date hereof. While such information is believed to be reliable for the purposes of this Information, neither Recognize nor its affiliates assume any responsibility for the accuracy or completeness of such information, and such information has not been independently verified.  Statements contained in this Information (including those relating to current and future market conditions and trends in respect thereof) that are not historical facts are based on current expectations, estimates, projections, opinions and/or beliefs. Such statements involve known and unknown risks, uncertainties and other factors, and undue reliance should not be placed thereon. In addition, no representation or warranty is made with respect to the reasonableness of any estimates, forecasts, illustrations, prospects or returns, which should be regarded as illustrative only, or that any profits will be realized. You should make your own investigations and evaluations of the contents of the Information and should note that such information may change materially.

The Recognize CIO Survey and its results (collectively, the “Survey”) represent voluntary responses to a range of inherently subjective questions posed by Recognize to respondents, and the Survey must be viewed in that context. While Recognize believes the Survey results offer a reasonably informative summary of respondents’ beliefs about relevant industry topics, the Survey’s design is the result of subjective decisions with which others may or may not agree. Recognize makes no representation as to the accuracy or completeness of the Survey, or that the outcomes predicted, suggested, or implied in the Survey will materialize. Recognize reserves the right to modify the Survey’s targeted respondents and/or methodology at any time without notice to recipients. Neither the Information nor the Survey are, and readers should not interpret them as, devices that can be used by themselves (or together) to determine whether or not to make any particular investment.