With the rate of technology moving at such a pace, businesses are under huge pressure to adapt and transform. This is being compounded by wider market volatility, increasing squeeze on budgets and demand for greater speed to value.
And as a result, 94% of business leaders are reporting “tech anxiety,” according to a new study by global digital transformation consultancy, Kin + Carta. With fears around complex black-box tech, data security and Generative AI hype causing anxiety levels to surge.
From the emergence of AI and machine learning to increasing cyber security threats and ever more complex data compliance legislation, leaders have a lot to navigate.
Increasingly business chiefs must possess tech and digital understanding to grasp the most pressing demands and opportunities for transformation while effectively managing high-cost, long-term, and highly disruptive processes.
But despite the urgency and necessity of digital transformation, organisations have historically struggled to achieve satisfactory outcomes. With initial responses often involving hastily increasing headcount and budget by hiring teams of skilled engineers, data scientists, and cyber security experts.
Against this backdrop, a growing phenomenon is emerging: tech anxiety. As the stakes continue to rise and demands for transformation intensify, leaders are experiencing heightened levels of anxiety surrounding digital initiatives.
What’s keeping business leaders up at night?
Uncertainty is everywhere. Trade tensions, political transitions, and regulatory changes have introduced unprecedented complexity. The lingering effects of the global pandemic continue to impact supply chain resilience, workforce management, and consumer behaviour. At the same time, technological disruption is advancing at an alarming rate.
The 2024 Leadership Priorities in Tech report, which interviewed over 800 senior executives in the UK and US, about experiences in their business, reveals that cyber security is the most common source of anxiety for leaders. And it’s not surprising. Research shows that global cyber-attacks rose by 7% in Q1 2023 suggesting concerns over cyber security are unlikely to disappear.
Anxiety about artificial intelligence and machine learning is also commonplace. Combining concerns over AI and machine learning and generative AI, the case can be made that this emerging technology is causing more anxiety than anything else.
The technologies with the greatest disruptive potential are generating the highest levels of concern. Additionally, external threats, such as regulatory changes, are also contributing to increased anxiety.
Common sources of ‘tech anxiety’
- 24% of leaders feel anxious about cyber security, with rising numbers of breaches increasing pressure on executives.
- 35% of leaders who said AI and machine learning was a source of anxiety believed it was due to technology moving too fast.
- The biggest worry for leaders anxious about sustainability was a skills gap—39% identified it as a concern.
But despite 75% of business leaders believing that investment in digital transformation
is necessary within the next 12 months, concerns remain about return on investment from digital initiatives, meaning that prioritising short and long-term goals is essential.
STRONG DATA
For business leaders across industries, data has emerged as the key driver for success. However, not everyone feels they can rely on the data inside their organisation. Just 30% of leaders fully trust their data, and although nearly half mostly trust it—almost 20% have somewhat or little trust.
But while some organisations struggle with fragmented and siloed data, the need to establish a single source of truth has become paramount. Leaders cite optimisation of processes and increased efficiencies, improved reporting and dashboarding, and a clear view of sales and marketing activity as their most critical data needs.
CYBER SECURITY
Cyber security also remains a priority. Amidst unprecedented investment in digital and cloud systems, as well as a shift to hybrid working—initiatives that have increased IT complexity and corporate cyber attack risks—leaders continue to invest in order to stay ahead of threats. And the cost of a data breach is no small amount, reaching a record $4.35m per incident in 2022, an increase of 2.6% from 2021, according to IBM.
AI
Artificial intelligence (AI) and machine learning (ML) are the most common investment priorities for business leaders. The potential for AI to disrupt multiple industries is clear, and the pace of transformation is increasing rapidly.
In the 12 months to June 2023, ‘artificial intelligence’ experienced a fivefold increase in interest on Google Trends. And organisations considered at the forefront of the AI field are attracting significant external interest and investment.
3 PRACTICAL TIPS TO OVERCOME “TECH ANXIETY”
Digital transformation may be overwhelming, but it also unlocks exciting possibilities. And by examining priorities and taking smart, targeted actions now, leaders can build the resilience and capability to thrive through whatever comes next.
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THINK BIGGER
Move beyond internal use cases for data. Challenge your teams and yourself to drive differentiation by connecting end-user value propositions—that drive customer lifetime value and lower acquisition cost (via increased NPS)—with delightful, original, and valuable experiences.
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FOCUS ON PARALLEL PRIORITIES
Put high-priority investment areas first. AI and machine learning, cyber security, and customer experience are all high anxiety areas and top investment priorities. These are areas where you need to find ways to build capabilities, tooling, architecture, experiences, and models in parallel. Multiple, simultaneous initiatives can ensure you succeed when unexpected challenges arise.
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PLAN FOR FUTURE NEEDS
Leaders often avoid challenges that fall into the high-anxiety x low-investment space—sustainability strategy, customer retention, and marketing performance— out of fear of the unknown. But often these become hot-button issues inside the C-suite, quickly rising up priority lists and catching leaders unprepared. Scope targeted initiatives for these areas now, building perspectives and skills in anticipation of investment and prioritisation in the future.
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