The latest findings from the EY Reimagining Industry Futures study reveal a robust momentum for enterprise investment in emerging technologies, with nearly half (47%) of businesses now investing in generative artificial intelligence (GenAI), a noticeable increase from 43% last year.
The report highlights significant investments in other emerging technologies as well, including the internet of things (IoT) at 43% and 5G technology at 33%, reflecting substantial growth from 39% and 27% respectively in 2024.
Despite this positive trend, businesses face challenges in converting technology trials into live deployments. While investment in IoT continues to rise, the percentage of businesses with active IoT deployments has decreased to 16%, down from 19% in 2024. Similarly, active deployments of edge computing remain stagnant at 22%, with a mere 1% of organizations reporting active deployments of GenAI.
“A failure to advance beyond the trial phase not only jeopardizes potential long-term value but also risks isolating emerging technology initiatives, which can limit the overall business benefits. In fact, nearly 80% of organizations seek to achieve greater synergies through the combined impacts of these technologies,” said Rob Atkinson, EY UK&I Technology, Media & Entertainment and Telecommunications Market Leader.
While enterprises show a strong inclination towards investment, they struggle with supplier selection due to low awareness of the evolving ICT landscape. 73% of survey respondents expressed the need for a better understanding of their suppliers. Moreover, over half (56%) of respondents believe they lack awareness of their technology suppliers’ additional partners, complicating decision-making in a landscape where collaborative ecosystems are becoming the norm.
“Organizations are recognizing ecosystem collaboration as essential for accessing new skills and capabilities. However, their understanding of changing supplier ecosystems remains limited. ICT providers must refine their strategies to focus on key partners and adapt their operating models to meet evolving market demands,” said Adrian Baschnonga, EY Global Technology, Media & Entertainment and Telecommunications Lead Analyst.
Enterprises are seeking vendors who can provide measurable business outcomes and access to a robust partner ecosystem. One-third (33%) of survey respondents highlighted these attributes as crucial when selecting suppliers. The ability to scale and integrate technologies also ranks highly, with 25% of businesses prioritizing this capability over cost considerations.
Amidst challenges in supplier awareness, over one-third (35%) of survey respondents indicate plans to reduce the number of ICT vendors they engage with over the next 12 months to improve security, reduce expenditure, and simplify technology ecosystems.
“With enterprises poised to concentrate their spending on a select group of key suppliers, it is vital for ICT providers to establish themselves as effective ecosystem orchestrators. This means delivering end-to-end solutions in collaboration with partners and highlighting capabilities that extend beyond their core offerings,” said Atkinson.
