North Highland Research Identifies 2024 Business Investment Priorities and Challenges

North Highland Research Identifies 2024 Business Investment Priorities and Challenges

Study of 500 business leaders finds top investment area – technology/AI – hindered by an ineffectiveness in connecting people and technology through processes

ATLANTA – July 10, 2024 – Technology, including AI, is the number one business investment area this year, however transformational AI use cases – beyond simple task automation – will require organizations to address the process and operational concerns surrounding their technology. These are key findings from a recent study commissioned by North Highland, the leading change and transformation consultancy.  

To identify business leaders’ key priorities as well as how technology, people and processes are impacting their strategies and intended business outcomes, North Highland surveyed 500 leaders across 11 industries in the U.S. and the U.K.  

Findings of the study, “The State of Connected Change 2024,” show that processes, people/skills, and culture are the top barriers AI adoption, while “workforce and organizational optimization” and “building internal capability” are top areas of concern. This insight underscores the importance of harnessing technology and AI through organizational practices, governance, and processes that best enable people to use it.

According to the research:

• Functional silos are preventing AI adoption and scale, reinforcing the importance of processes and ways of working in realizing the value of technology.
• When asked how generative AI is influencing workforce strategy, nearly one in three leaders report “introducing new upskilling and reskilling programs,” along with “increased reliance on technology partners.”
• “Internal technology capabilities” topped the list of investment priorities (43%), yet less than half of those spending big on technology are also investing in risk management, indicating there is an underemphasis on risk relative to the degree of technology investment.
• AI-enabled technology may be contributing to a spirit of optimism, with 97% of leaders predicting revenue maintenance or growth this year.
• Revenue confidence aside, over 80% of leaders say their organization has at least some AI-related fears.

“Our research shows that technology deployment is still happening in silos, often being ‘turned on’ rather than owned and adopted by a cross-functional team and embedded into the business culture,” said Alex Bombeck, CEO of North Highland. “With AI top of mind for leaders, overcoming these barriers and fostering ‘connected change’ must start with intentionality in how organizations manage their people, knowledge, and data, and North Highland is uniquely positioned to help clients navigate this shift.”

To learn more about the business challenges and priorities shaping organizations across 11 different industries, download the full study below.

_{Research Methodology
In March 2024, North Highland commissioned a study of 500 business leaders representing:
-Director, executive management/VP, and C-suite perspectives
-Organizations with >$1B annual revenue (or GBP equivalent) and headquartered in the United States or United Kingdom
-Functional responsibilities ranging from Operations and IT to HR and Finance.
The survey was conducted by trained moderators between March 5 and March 24, 2024. All claims regarding significance are at a 95 percent confidence level, using pairwise multiple comparison test and significance test of the total mean percentage.}