A new IBM study reveals that the complexity of generative AI is pushing tech executives to reassess their technology infrastructure. Of the 2,500 tech leaders surveyed globally, 43% expressed increased concern about their infrastructure, with many focusing on hybrid cloud and AI investments. Over the next two years, they expect to spend 50% of their budgets on these areas.

The study also highlights a gap in collaboration between tech and finance leaders, with only 39% of tech executives embedding tech metrics into business cases. High-performing organizations that link technology investments to measurable outcomes report 12% higher revenue growth.

In South Africa, IBM’s Ria Pinto emphasised the challenge of integrating AI with legacy systems and the importance of modernizing IT infrastructure to unlock AI’s full potential.

“Tech executives, including in South Africa, are grappling with the complexities of integrating AI while modernizing their IT infrastructure. As businesses increasingly turn to AI to drive growth and innovation, the challenge lies in aligning these cutting-edge technologies with legacy systems, ensuring that IT infrastructure can support the demands of today’s dynamic business environment,” said Pinto

Ria Pinto GM and Technology Leader IBM South Africa

“At IBM, we’re committed to empowering local organizations with the solutions they need to navigate this transformation seamlessly, enabling them to unlock the full potential of AI while future-proofing their operations.”

Responsible AI is another key concern. While 80% of CEOs stress the need for transparency, only 50% of tech leaders say their organizations are delivering responsible AI capabilities like explainability and privacy. In South Africa, organizations are slightly ahead in fairness but still face challenges.

Tech executives are also struggling to find skilled talent, with 58% reporting difficulties filling key roles. Many are turning to business partners to address the skills shortage, particularly in areas like cloud and AI. In South Africa, this shortage is expected to grow, with 50% and 55% increases in cloud and AI skills scarcities, respectively. Financial pressures are seen as a major barrier to investing in talent.

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