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73% of CIOs plan to increase their IT budget in 2024, finds a survey by Recognize

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it budget 2024

The year 2024 promises a surge of innovation and strategic shifts, with technology investments shaping the future. Against this backdrop, Chief Information Officers (CIOs) are at the forefront, allocating budgets and driving transformative initiatives to propel their organizations into the next phase of technological advancement. A recent CIO survey by Recognize sheds light on IT budget projections, strategic priorities, and technological evolution, providing a valuable glimpse into the tech industry’s trajectory for 2024. Here are some key findings.

  1. Augmented IT Budget for 2024

As organizations gear up for the challenges and opportunities of the coming year, 73% of surveyed CIOs anticipate an upswing in their IT budgets for 2024. This positive outlook signals a significant investment trend in the tech sector, with only 15% expecting no change and 12% predicting a reduction in budgetary allocations.

IT budget 2024

  1. Cyber/Data Security Takes Center Stage

Delving into organizations’ IT initiatives, the survey highlights that Cyber/Data Security reigns supreme, capturing the attention of 36% of respondents. Artificial Intelligence closely follows as the second-highest priority at 35%, while Cloud Migration claims the third spot with 29%. This shift in focus underscores the industry’s commitment to fortifying digital defenses and embracing cutting-edge technologies.

Other IT initiatives pointed out by CIOs are cost savings, network upgrades, customer experience, custom app development, robotic process automation, and data engineering among others.

  1. Rising Adoption of Large Language Models (LLMs)

The survey reveals that 69% of organizations are already leveraging Large Language Models (LLMs), showcasing widespread adoption. Notably, GPT-4 by Open AI emerges as the predominant choice, with 50% utilization, followed by its predecessor GPT-3.5 at 19%. This diverse ecosystem of AI tools reflects the industry’s dynamic approach to harnessing advanced technologies.

However, 24% organizations said that they are yet to implement this technology. 7% are not sure about their engagement with large language models.

  1. Impact of AI on Companies in the Next Two Years

CIOs participating in the survey foresee AI playing a substantial role in shaping their organizations over the next two years. A majority, 54%, anticipate significant use cases driving productivity, while 22% foresee a transformational impact. However, 19% believe AI’s impact will be significant in certain use cases, and 6% express skepticism, perceiving minimal impact on productivity in their organizations.

  1. ERP Projects Surge Across Organizations

Almost half of the organizations surveyed, 47%, are actively involved in major Enterprise Resource Planning (ERP) projects, showcasing a commitment to system upgrades. Additionally, 37% are planning to initiate ERP projects in the next 12 years, indicating a robust push towards technological modernization. Only 12% are not engaged in such projects, with 4% remaining undecided.

The Recognize CIO Survey, which encompasses a diverse panel of 250-500 CIOs in the United States, provides a comprehensive snapshot of the tech services industry’s trajectory for 2024, revealing an optimistic outlook with increased IT budgets, a heightened focus on cybersecurity, and a dynamic adoption of advanced technologies.

Source

Read next: Top 10 IT industry mergers and acquisitions that grabbed the attention of CIOs in 2023

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