77% of Companies Plan Tech Budget Increases Despite Economic Turmoil

There have been a series of economic and geopolitical disruptions that have created obstacle after obstacle for numerous industries, and the tech industry is no different. This type of climate creates a lot of unpredictable scenarios, and if companies are not certain about the way the future is going to look they would be hesitant to commit their budgets to any type of advancement or progress with all things having been considered and taken into account.

In spite of the fact that this is the case, a new report from Bain revealed that around 77% of companies still plan on increasing their tech budgets for 2023 when compared to budgets for 2022. This is a decrease from last year’s 90% that said the same, but with all of that having been said and now out of the way it is important to note that the vast majority are still planning on investing even more than they have in the past due to the importance of tech related innovation.

Venture capital investments over the past few years seem to confirm that the tech train is not showing any signs of stopping. Around 75% of venture capital dollars have gone towards enterprise software and IT infrastructure. It makes sense that the focus would shift to the commercial sector now that IT has so thoroughly dominated the consumer sector, and it will be interesting to see if the current global climate has implications in the future that have not played out as of right now.

Additionally, AI seems to be a hot topic for investors. Around 86% of tech professionals and experts who responded to this survey said that AI is becoming standard in terms of acquiring customers and sustaining growth. That means that companies currently can’t afford not to invest in AI, so we will likely see a continued increase in investment in this sector for the foreseeable future.

Despite that, only 20% of companies actually have the infrastructure to properly utilize AI. That might create some roadblocks down the road and it suggests that current investment inflows are purely speculative rather than utilitarian.

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