AI, Cybersecurity, and XaaS: How Businesses Are Investing in the Future The Asia-Pacific (ASPAC) region is leading in proactive tech adoption, with India and China standing out as frontrunners in implementing emerging technologies

Emerging technologies are evolving at an unprecedented speed, and enterprises worldwide are racing to keep up. While many companies struggle to stay ahead, those that invest strategically in technology are seeing significant benefits. According to KPMG's Global Tech Report 2024, 87 per cent of businesses reported higher profits. However, 78 per cent of tech leaders are struggling to keep pace with the rapid rate of change.

As businesses deepen their reliance on technology, cybersecurity remains a major focus. The report highlights that 35 per cent of companies plan to strengthen data security in the next year, while 33 per cent are working on improving data accessibility to ensure employees can easily use information for decision-making. Additionally, 32 per cent are prioritizing data governance, helping businesses manage and protect their data more effectively.

Despite these efforts, cybersecurity risks and privacy concerns remain the biggest obstacles to digital transformation. Many digital initiatives are also delayed due to security fears—80 per cent of executives admit that a risk-averse culture slows their leadership's adoption of new technology.

AI Angle

Artificial Intelligence (AI) is proving to be a game-changer, but businesses are still figuring out how to maximize its potential. According to the report, 74 per cent of organizations say AI is already making their employees more productive. However, a growing concern remains—78 per cent worry that AI's decision-making process lacks transparency and is not well understood.

"A pivotal shift in how organizations engage with technology—moving from a reactive stance to a more strategic, value-focused model. While AI is boosting productivity, risk aversion and poor governance are still significant barriers to transformation. To truly unlock AI's potential, businesses must focus on trust, transparency, and a well-structured, value-driven approach beyond the hype," shared Akhilesh Tuteja, Partner & National Leader at KPMG India.

Investment Beyond AI

Eighty-six per cent of companies are prioritizing investment in Everything-as-a-Service (XaaS), a model that enhances agility and reduces costs through cloud-based solutions. Other top investment areas include cybersecurity (68 per cent), AI and automation (65 per cent), and edge computing (61 per cent).

Notably, the Asia-Pacific (ASPAC) region is leading in proactive tech adoption, with India and China standing out as frontrunners in implementing emerging technologies.