KPMG Global Tech Report: Tech Investments Drive Profits for Irish Businesses, Despite Struggles with Pace of Change

KPMG has published its KPMG Global Tech Report 2024, examines how organisations are balancing their need to keep up with the pace of tech advancements  with prioritising initiatives based on their business value. While a significant number of Irish organisations have reported increased revenues thanks to tech advancements, they remain behind the global average as 87% of businesses globally report a bounce in profits as a result.

According to the new report in which more than 2,450 tech execs worldwide were surveyed, including 70 tech execs in multiple Irish organisations, companies are getting better at identifying and delivering value. The undeniable pace of tech change led to over two-thirds (70%) of Irish respondents sharing that they worry they struggle to keep up. Meanwhile, only 43 percent of respondents said they review and update value-tracking metrics to stay aligned with market changes.

“Tech investments are really paying off for Irish businesses. Even with the fast pace of change and the challenges that brings, it’s great to see organisations report higher profits thanks to these investments. This highlights the need for a balanced approach to adopting new tech, where businesses not only keep up with the latest advancements but also focus on initiatives that bring real value. Moving forward, it’s going to be important for organisations to tackle compliance and governance issues to fully benefit from digital transformation. Plus, with the EU AI Act now coming into force, staying compliant will be even more crucial” said Liam Cotter, Technology Practice Lead, KPMG in Ireland.

Fear of Failure

The report also shared insights into threats to digital transformation success: 84 percent of executives say that risk aversion results in senior leadership responding to market forces slower than their competitors.  Meanwhile compliance concerns; ineffective governance and coordination; and an inability to agree on priorities or get stakeholder buy-in were reported as the three factors most likely to slow down a digital transformation programme.

Data is clearly fundamental to the process of digital transformation and harnessing value out of tech investments with 66 percent of respondents citing data investments as embedded in their organisation. The survey shows that business leaders view data accessibility and democratisation, 33 percent, data governance, 33 percent, and extracting meaningful insights 30 percent as immediate priorities.

AI unlocking value

AI has occupied the headlines in recent years, and the report shows that 70 percent of organisations are already achieving business value from their AI investments. While this is encouraging, with only 24 per cent of Irish based respondents saying they deploy AI at scale, there is significant room for growth. To unlock sustainable value and achieve success that outlasts the hype, tech leaders should apply conventional rigor, build consensus, unlock AI capability, and drive trusted AI transformation across their organisations.

Although it is positive to see that 70 percent of respondents say AI is already increasing the productivity of their knowledge workers, the report discloses that AI is also fuelling anxiety in the workforce with 70 percent worrying that users see AI as difficult to understand.

Rory Timlin, Data & AI Lead Practice Lead, KPMG in Ireland highlighted the duality of AI’s impact on the modern workforce, outlined in the report. “It’s encouraging to see significant value from AI reported, but it’s equally important to address the concerns surrounding AI’s transparency. By creating a culture of openness and continuous learning, organisations can demystify AI and build trust among their employees. Organisations should consider wider growth opportunities from AI across the enterprise, in addition to near term productivity gains. This approach not only enhances the overall adoption of AI but makes sure benefits are fully realised across the business.”

About the research:

The study is based on a survey of 2,450 executives from 26 countries and territories:

• 27 percent from Asia Pacific
• 44 percent from Europe, Middle East and Africa (EMEA)
• 29 percent from the Americas

There are representatives from across eight industries, including energy financial services, government, healthcare, industrial manufacturing, life sciences, tech, retail, and consumer packaged goods.