Millions of dollars at risk over new tech FOMO – report

Ardoq's latest research, the Emerging Technology Adoption Report 2024, uncovers millions of dollars at risk as organisations navigate emerging tech investments using a trial and error approach. CIOs claim that their investments are frequently driven by fear of missing out (FOMO), with 61% admitting this influence, and 79% affirming that they must take risks on emerging technologies or risk extinction, akin to 'going the way of the dinosaurs.'

Measurable business benefits and impact are only delivered by approximately half (53%) of emerging technology adoption projects, according to the report. A noteworthy 82% of CIOs concede that it's easy to masquerade ordinary products by introducing new capabilities, a process dubbed 'AI washing', without necessarily creating any business value.

This reveals a landscape where opportunities and risks are substantially skewed, particularly concerning Artificial Intelligence (AI) projects. The report details that 65% of CIOs consider AI the riskiest technology they've invested in, yet feel a duty to get it right (81%). About 66% believe a delay in AI could put them at a competitive disadvantage. Visibility and control of risk across the IT portfolio is a notable challenge for 89% of leaders, and they also struggle to anticipate the impact of evolving regulations.

Erik Bakstad, CEO and co-founder of Ardoq, noted the potential of emerging technology research. He said, "In today's fast-paced digital era, those that can adopt new technologies quickly and fuse them into the fabric of their business can unlock huge rewards...However, investing in emerging technologies like AI is not for the faint of heart. Organisations must be prepared to navigate the risks, or could find their technology investments falling short of expectations."

The report also delves into investment figures with enterprises spending an average of $43.4m annually on emerging technology projects. But despite this massive investment, 69% of CIOs say predicting the ROI is nothing more than a 'finger in the air' exercise. Furthermore, only 32% of organisations look for tangible ROI from an emerging technology adoption project within the first 12 months. In comparison, just over a quarter (26%) anticipate an ROI within five to ten years.

Enterprise architecture (EA) development has emerged as a critical aspect of achieving the full potential of emerging technology projects, with 89% of CIOs stating difficulty in maintaining visibility and control of risk. A striking 68% of CIOs say if they didn't constantly adjust their course, their technology adoption projects would be unlikely to succeed.

Reiterating the importance of embracing change, Bakstad continued, "Organisations must therefore assume they will be uprooted and position themselves to be able to pivot, to stay on the path. By harnessing data to inform decision-making at every turn, organisations can navigate the complexities of emerging technology adoption with confidence."

The Emerging Technology Adoption Report 2024 is based on a survey of 700 CIOs and senior IT leaders in enterprises with over 2,000 employees. The study was commissioned by Ardoq and completed in partnership with Slalom, conducted by Coleman Parkes between March and April 2024.