Published on May 15, 2024, 8:28 am

Title: Navigating Emerging Technology Investments: Balancing Innovation With Risk Management

Amidst concerns over poor returns, Chief Information Officers (CIOs) are actively pursuing Artificial Intelligence (AI) adoption projects, propelled by the fear of missing out (FOMO), according to recent research by software firm Ardoq. The study reveals that a majority of CIOs perceive FOMO as a significant driver of investment decisions, with many admitting that predicting Return on Investment (ROI) in such ventures is often speculative.

While emerging technology adoption projects hold promise, tech leaders caution that only around half of these initiatives yield measurable value, underscoring the importance of meticulous decision-making in investments. Erik Bakstad, CEO and co-founder of Ardoq, emphasizes the need for organizations to swiftly integrate new technologies into their operations to reap substantial benefits in today’s rapidly evolving digital landscape. However, he warns that ventures into technologies like AI require thorough risk assessment to prevent falling short of expectations.

The survey indicates that successful exploration of emerging technologies can position CIOs at the forefront of their markets; nonetheless, achieving success rates comparable to established technologies remains a challenge. The pressure to innovate quickly stems from fears of being outpaced by competitors while acknowledging the high stakes and risks associated with AI investments.

Notably, there is skepticism surrounding the tangible business benefits derived from AI implementations, with concerns raised about ‘AI washing’—introducing new AI capabilities without generating substantive outcomes. Organizations exhibit varying timelines for expecting ROI from tech adoption projects, revealing a cautious approach towards futuristic technology ventures due to past disappointments.

Maintaining visibility and control over risks within IT portfolios emerges as a persistent issue for CIOs navigating through evolving regulations and technological landscapes. Manual mapping practices prevail in assessing the impact of new technologies on existing frameworks and identifying potential benefits they offer. The report stresses three pivotal factors for success: risk-reward equilibrium during tech adoption, long-term investment perspectives, and treating enterprise architecture as a strategic business discipline rather than merely an IT function.

To capitalize on emerging technology investments successfully requires organizations to embrace change proactively and leverage data-driven decision-making processes. By acknowledging uncertainty as an inherent aspect of progress and pivoting strategically when necessary, companies can navigate the complexities of emerging tech adoptions confidently.

Share.

Comments are closed.