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Home»AI in Business»Security and AI dominate business spending as companies seek effective improvements
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Security and AI dominate business spending as companies seek effective improvements

December 1, 2024002 Mins Read
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  • GSMA report says cybersecurity spending expected to increase by end of decade
  • Unsurprisingly, 5G is expected to benefit from investments 2.5 times greater than 4G by 2030.
  • Telecom operators must help businesses undertake digital transformation

Most businesses are not responding to tough economic conditions by cutting costs, but instead are looking to increase revenue, a new study suggests.

A new report from the GSMA shows that three-fifths of companies are now prioritizing revenue growth, customer experience and competitive positioning to help their business grow rather than making reactive decisions to reduce costs. costs.

But the study also reveals that cybersecurity is at the top of the list for many companies, and their investments are expected to continue to grow in the long term.

Companies invest in future growth

The report indicates that companies plan to allocate a considerable 9% of their revenue between 2024 and 2026 to cybersecurity, with this figure increasing by two percentage points to 11% between 2027 and 2030.

In addition to improving security, companies have also expressed their commitment to investing in artificial intelligence and improving their connectivity.

Most (85%) now view 5G networks and connectivity as important, with an average of 21% of digital transformation budgets expected to be spent on connectivity – 13% for mobile and 5G and 8% for fixed and Wi-Fi. Between 2024 and 2030, investments in 5G are expected to be 2.5 times higher than in 4G, high mobility sectors such as automotive, transport, logistics and warehousing being at the origin of a large part of these investments.

Finally, AI Spending is expected to continue as businesses seek productivity and efficiency gains. It already represents 14% of business technology spending, with 90% of companies having integrated this technology in one form or another. However, the growth opportunities are enormous given that only a third use it in an “advanced” way.

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“Telecom operators need to go beyond just providing network services as businesses increasingly look for partners who can help them along their digital transformation journey, combining technologies such as 5G , AI, IoT and cloud to improve efficiency, security and generate revenue,” noted Pablo Iacopino, GSMA Head of Intelligence Research.

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