With the rise of AI, technology companies must prioritize investments in these IT areas.

• While AI continues to attract investment attention, technology leaders must be cautious not to overlook other important aspects.
• Sufficient funding is necessary for cybersecurity and data privacy, which are always in demand as components of IT.
• AI solutions should be invested in, but with a more careful approach.

What should companies prioritize in their IT budgets for the remaining months of 2024, considering that AI continues to be a significant investment area but it's crucial not to overlook other important aspects?

Experts suggest that CIOs and other tech executives should concentrate on certain key areas.

Ensuring the security and confidentiality of data is an essential aspect of IT that must always be prioritized and adequately funded.

As digital transformation speeds up, so does the potential for cyberattacks, according to Christopher Gilchrist, principal analyst at Forrester.

"As remote work, cloud adoption, and IoT devices increase, the attack surface for cyber threats has significantly expanded, according to Gilchrist. Additionally, regulatory compliance requirements are becoming more stringent across industries, requiring investments in robust cybersecurity frameworks and compliance tools."

Gilchrist stated that by allocating budgets for enhancing cybersecurity measures, such as implementing zero-trust architectures, upgrading firewalls, and adopting advanced threat detection systems, companies can prevent costly breaches and fulfill their regulatory obligations.

Creating a 'future-fit' enterprise

""Today, the primary expectation from information technology investments is to optimize business outcomes, rather than just driving operational excellence," stated Janelle Hill, vice president and analyst at research firm Gartner."

Hill advised that enterprises should prioritize investing in modern, digital technologies to drive growth and business expansion. She recommended that the budget for IT should continue to focus on modernizing existing applications and moving to the cloud. However, she suggested that enterprises should shift their focus from back office, shared services to market-facing and 'middle office' initiatives.

Gartner's business executive clients frequently express the desire to react more quickly and effortlessly to changing market conditions. According to Hill, this involves not only responding but also actively seeking out new opportunities to capitalize on.

Graphical representations of an organization's business capabilities, their relationships, and hierarchy are provided by business capability models (also known as business capability maps).

"Hill stated that most enterprises lack investments that allow them to reduce the cost, time, and risk of modernizing their operations, which he referred to as "future-fit" readiness for any disruption or opportunity."

To achieve future fitness, businesses should shift their focus from automating processes to redesigning their capabilities in a modular way, according to Hill. However, few have mastered the art of designing discrete, reusable and reassemblable modules that can be customized to meet specific needs and opportunities.

Hill stated that a business capability model is a crucial visual tool for making investment decisions.

Critical cloud optimization tools

While cloud computing is still a vital tool for scalability, flexibility, and cost-efficiency, Gilchrist noted that many organizations are shifting from cloud adoption to cloud optimization.

To minimize waste, optimize costs, and efficiently utilize resources, cloud infrastructure must be fine-tuned.

"Gilchrist advised that companies can achieve better performance and cost savings through investments in multi-cloud strategies, cloud-native applications, and tools for monitoring and managing cloud environments. Moreover, he recommended investing in cloud security to safeguard cloud assets from emerging threats."

Data analytics and decision-making

In the digital marketplace, data is a valuable asset. Companies that effectively utilize data and data analytics can enhance the customer experience and gain a competitive advantage.

""Investing in data analytics and business intelligence tools is crucial for companies to gain a competitive edge through data-driven decision-making, which helps in enhancing customer experiences, improving operational efficiency, and gaining actionable insights," Gilchrist stated."

To make informed decisions quickly, companies should prioritize investing in data infrastructure, upgrading analytics platforms, and training staff to use these tools effectively, Gilchrist advised.

AI, as needed

While it is important for companies to invest in AI solutions, they should do so with caution and a more selective approach in many instances.

"Instead of investing in AI for the purpose of innovation, companies should prioritize AI projects that align with their strategic objectives and provide clear, measurable ROI, according to Gilchrist. AI investments should focus on areas where automation, predictive analytics, or AI-driven insights can solve specific business problems or create new revenue streams."

Companies should avoid investing heavily in AI without first ensuring they have the necessary infrastructure, skilled personnel, and data quality to support these technologies.

To address ethical concerns related to data privacy, bias, and transparency, companies should prioritize allocating budgets for their AI initiatives.