Business executives worldwide are optimistic about the economy and business conditions in 2025, and how digital technology plays into it all.
And digital technology will play a key role in helping companies improve operations, cut overhead, and reach sustainability goals faster, according to new survey of 2,500 business executives worldwide by research and consulting firm Capgemini.
It found three key priorities: growth outlook, cost priorities and a focus on investment.
62% of large organizations are optimistic about their growth prospects for 2025, up from 56% in 2024. However, this optimism contrasts with a more restrained view of the broader global economy.
56% of organizations are prioritizing cost reduction over revenue growth. Despite this, 50% plan to increase investments to enhance efficiency and long-term competitiveness.
Top priorities for 2025 include customer experience, R&D, innovation, supply chain transformation, and sustainability.
What digital technology options are executives prioritizing?
When it comes to technology investments, executives’ priorities vary both by company and by region.
- AI and Generative AI. 74% of executives rank AI and generative AI among their top three investment areas, with U.S. executives showing higher enthusiasm (81%) compared to European counterparts (72%).
- Other technologies. Cloud computing (40%) and data analytics (33%) are also prioritized.
- Regional disparities. U.S. companies plan to allocate 1.45% of annual revenue to technology investments in 2025, surpassing Europe and Asia-Pacific (APAC), contributing to a $165 billion investment gap between the U.S. and Europe.
As far as IT spending trends go, globally, organizations plan to allocate 6% of annual revenues to IT budgets in 2025. Overall, 69% of executives believe increased technology investments are necessary to remain competitive, a sentiment particularly strong among U.S. leaders (84%) compared to their European counterparts (64%).
“Although investment growth in sustainability has slowed, sustainability still remains an important aspect of businesses’ future plans, with sustainability investment focusing on climate technologies, sustainable product design, biodiversity, and water,” the report says. “When it comes to technology investment, US organizations, particularly mid-sized ones, are expected to outspend their global peers on tech investments, with AI and generative AI being top priorities. The key challenges and risks for 2025 are trade disputes and tariffs and talent scarcity. Seven out of ten executives globally are concerned about rising tariffs and bilateral trade disputes. And a majority (61%) of business leaders agree that the lack of tech skills is significantly hindering their organization’s ability to remain competitive.”
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