Enterprises embrace AI and IoT to drive secure growth

A comprehensive survey by GSMA Intelligence reveals significant enterprise investment trends in digital transformation technologies, with businesses prioritizing revenue growth and customer experience over cost reduction.

Key survey parameters: GSMA Intelligence conducted an extensive study involving 4,200 enterprises across 10 industries in 21 countries during June-August 2024, examining attitudes toward digital transformation technologies.

• The survey focused on multiple technologies including 5G, private networks, AI, cloud computing, IoT, eSIM, cybersecurity, and network APIs
• Researchers gathered data from diverse sectors ranging from financial services to agriculture

Investment trends and priorities: Enterprises are planning substantial increases in their digital transformation budgets, with notable emphasis on connectivity and security technologies.

• Companies expect to allocate 9% of revenue to digital technologies during 2024-2026, increasing to 11% during 2027-2030
• 21% of digital transformation budgets will go toward connectivity and associated devices
• Mobile technologies, including 5G, will receive 13% of budgets, while fixed and Wi-Fi networks will get 8%
• 5G investment between 2024 and 2030 is projected to be 2.5 times greater than 4G investments

AI and IoT adoption patterns: Artificial Intelligence and Internet of Things technologies are seeing rapid adoption across enterprises, with varying levels of sophistication.

• AI comprises 14% of enterprise technology expenditures, focusing on customer experience, security, and productivity
• 90% of companies are incorporating generative AI, though only 33% report advanced usage
• IoT adoption is progressing with increased integration of 5G capabilities
• Enterprises predict eSIM will represent 42% of the total IoT cellular market by 2030

Industry-specific insights: Different sectors show varying levels of digital transformation maturity and priorities.

• Financial services leads in generative AI adoption at 92% and allocates 10.4% of revenue to digital transformation
• The automotive sector shows the strongest focus on 5G, with 54% rating it as extremely important
• Manufacturing reports the highest concerns about internal expertise for AI deployment
• Agriculture, forestry, and fishing demonstrate the lowest overall digital transformation scores

Future outlook and challenges: Implementation costs and technology integration complexity emerge as significant hurdles for enterprise digital transformation.

• Companies increasingly seek partners who can assist with comprehensive digital transformation journeys
• The role of technology orchestrator is becoming more crucial as enterprises navigate multiple technological solutions
• Cybersecurity remains a top priority while businesses simultaneously focus on revenue growth opportunities

Market implications: While enterprise enthusiasm for digital transformation is clear, the varied adoption rates and implementation challenges suggest a maturing market that still has significant growth potential, particularly in sectors currently showing lower digital transformation scores.