Business Leaders Signal Increased Sustainability and AI Investments for 2024

A new report from the Capgemini Research Institute reveals a positive shift in business leaders’ outlook for 2024, with a significant number planning to boost investments in key areas like customer experience, innovation, talent, sustainability, and supply chains.

With 56% of leaders confident in their organization’s growth, despite economic challenges, there’s a notable pivot towards digital innovations, particularly AI, to drive future advancements. A remarkable 83% of leaders are set to increase their digital tool investments, emphasizing AI’s role in fostering innovation and growth.

Sustainability emerges as a critical investment focus, with 52% of respondents intending to ramp up their efforts. The looming threat of climate change and its potential to disrupt operations has nearly half of the leaders acknowledging the urgent need for sustainable practices to mitigate long-term risks.

Legislative Incentives Spur Clean Tech Investments

In response to initiatives like the US Inflation Reduction Act and the EU Green Deal Industrial Plan, over half of the business leaders surveyed express intentions to elevate their investments in clean technology within these regions.

The report highlights a growing awareness among business leaders about the conflict between relentless growth and environmental sustainability, with two-thirds questioning the compatibility of current growth models with addressing climate and ecological crises.

The pandemic’s impact on global supply chains has prompted a strategic shift towards nearshoring and ‘friend-shoring’ to minimize future disruptions. This approach aims to diversify procurement sources and reduce dependency on volatile markets.

Addressing talent shortages and adapting workplace strategies are high on the agenda, with a significant focus on enhancing office spaces and maintaining flexible work arrangements to attract and retain skilled professionals.