A recently published report from Ernst & Young has highlighted companies spending habits in the midst of the present financial, geopolitical, and, regulatory uncertainty.
Ernst and Young state that many firms are taking steps to future proof their businesses against the risks of an uncertain market, with technology leading the way for future growth.
As part of the EY semiannual survey, it was revealed that investment into digital infrastructure grew from previous years in terms of investment capital: 85% of the executives interviewed said they spend between 25% to 49% of their total capital on technology with 55% of that amount being allocated to future growth opportunities.
Another fact from the report is that companies are increasingly looking externally for new business investments instead of leveraging internal resources. 24% of executives interviewed said that they source new assets within their own networks while 45% said they rely on external joint ventures, alliances, direct acquisitions, and investments.
A section of the survey also asked executives for their opinion on what emergent technologies will have the biggest impact on their businesses. It was discovered that artificial intelligence and machine learning would have the greatest benefit, with 35% in agreement. Internet of Things came in at 19% and robotics at 16%.
Despite the turbulent markets, executives remained optimistic overall. 80% of respondents said that they expect their profit margins to increase over the next 12 months as well as their gross revenue.