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So, in keeping with the New Years spirit, we asked multiple CIOs about their professional resolutions for 2025. One of them is Katherine Wetmur, CIO for cyber, data, risk, and resilience at Morgan Stanley. She recognizes that the possibilities of AI grow by the day but so do the risks.
Regardless of the driver of transformation, your companys culture, leadership, and operating practices must continuously improve to meet the demands of a globally competitive, faster-paced, and technology-enabled world with increasing security and other operational risks.
Gartner’s top predictions for 2025 are as follows: Through 2026, 20% of organizations will use AI to flatten their organizational structure, eliminating more than half of current middle management positions. By 2028, 25% of enterprise breaches will be traced back to AI agent abuse, from both external and malicious internal actors.
CIOs were given significant budgets to improve productivity, cost savings, and competitive advantages with gen AI. Experienced CIOs know there is never a blank check for transformation and innovation investments, and they expect more pressure in 2025 to deliver business value from gen AI investments.
Despite these limitations and concerns among CIOs over AI costs, real progress has been made this year and we can expect to see this grow further in 2025. Assuming a technology can capture these risks will fail like many knowledge management solutions did in the 90s by trying to achieve the impossible.
According to a Bank of America survey of global research analysts and strategists released in September, 2024 was the year of ROI determination, and 2025 will be the year of enterprise AI adoption. Anshu Bhardwaj, SVP and COO at Walmart Global Technology says that consumers arent the only ones who stand to benefit from mobile AI.
Research firm IDC projects worldwide spending on technology to support AI strategies will reach $337 billion in 2025 — and more than double to $749 billion by 2028. AI spending on the rise Two-thirds (67%) of projected AI spending in 2025 will come from enterprises embedding AI capabilities into core business operations, IDC claims.
This approach delivers substantial benefits: consistent execution, lower costs, better security, and systems that can be maintained like traditional software. This translates to higher costs and slower response times. Security Letting LLMs make runtime decisions about business logic creates unnecessary risk.
This year saw emerging risks posed by AI , disastrous outages like the CrowdStrike incident , and surmounting software supply chain frailties , as well as the risk of cyberattacks and quantum computing breaking todays most advanced encryption algorithms. To respond, CIOs are doubling down on organizational resilience.
CIOs perennially deal with technical debts risks, costs, and complexities. While the impacts of legacy systems can be quantified, technical debt is also often embedded in subtler ways across the IT ecosystem, making it hard to account for the full list of issues and risks.
3) Cloud Computing Benefits. It provides better data storage, data security, flexibility, improved organizational visibility, smoother processes, extra data intelligence, increased collaboration between employees, and changes the workflow of small businesses and large enterprises to help them make better decisions while decreasing costs.
Research from Gartner, for example, shows that approximately 30% of generative AI (GenAI) will not make it past the proof-of-concept phase by the end of 2025, due to factors including poor data quality, inadequate risk controls, and escalating costs. [1] AI in action The benefits of this approach are clear to see.
Wei also noted that chemical supply costs in the US are substantially higher, citing the need to ship sulfuric acid from Taiwan to Los Angeles and then transport it to Arizona by truck. Supply chain constraints, such as higher material costs and logistical challenges, further increase expenses.
But alongside its promise of significant rewards also comes significant costs and often unclear ROI. For CIOs tasked with managing IT budgets while driving technological innovation, balancing these costs against the benefits of GenAI is essential. See also: Gen AI in 2025: Playtime is over, time to get practical.
Agentic AI, the more focused alternative to general-purpose generative AI, is gaining momentum in the enterprise, with Forrester having named it a top emerging technology for 2025 in June. It also has the benefit that as underlying AI costs drop over time service providers can extract more margin for this work.
While CIOs understand the crushing weight of technical debt — now costing US companies $2.41 The more strategic concern isn’t just the cost— it’s that technical debt is affecting companies’ abilities to create new business, and saps the means to respond to shifting market conditions. You’re not alone.
As Windows 10 nears its end of support, some IT leaders, preparing for PC upgrade cycles, are evaluating the possible cloud cost savings and enhanced security of running AI workloads directly on desktop PCs or laptops. OEMs that have shipped or are readying AI PCs for 2025 or 2026 include Dell, Acer, Asus, HP, Lenovo, Samsung, and Microsoft.
The results can be used to uncover the source of bottlenecks, delays, unseen risks and unnecessary workloads that, in turn, allows organizations to institute improvements. The main shortcoming I found in the software is that it does not take costs into account in its optimizing routines, but I expect that will be added shortly.
The key areas we see are having an enterprise AI strategy, a unified governance model and managing the technology costs associated with genAI to present a compelling business case to the executive team. We expect some organizations will make the AI pivot in 2025 out of the experimentation phase.
There are risks around hallucinations and bias, says Arnab Chakraborty, chief responsible AI officer at Accenture. So far, over half a million lines of code have been processed but human supervision is required due to the risk of hallucinations and other quality problems. Thats the way it was normally done, until gen AI came along.
The EU AI Act will be implemented in stages over the next two years, starting in February 2025, and the EU Data Act will be implemented in stages starting in fall 2025. Through needs-based shoring, the company can benefit from additional efficiency gains.
In 2024, squeezed by the rising cost of living, inflationary impact, and interest rates, they are now grappling with declining consumer spending and confidence. But 2025 and 2026 will bear good news, according to Deloitte. Perhaps most concerning is the increased compliance risk that stems from inconsistent product information.
So for all its vaunted benefits to efficiency, gen AI doesn’t always reduce workloads. And we’re at risk of being burned out.” If there are tools that are vetted, safe, and don’t pose security risks, and I can play around with them at my discretion, and if it helps me do my job better — great,” Woolley says.
The previous state-of-the-art sensors cost tens of thousands of dollars, adds Mattmann, who’s now the chief data and AI officer at UCLA. Adding smarter AI also adds risk, of course. “At The big risk is you take the humans out of the loop when you let these into the wild.” They also had extreme measurement sensitivity.
Table of Contents 1) Benefits Of Big Data In Logistics 2) 10 Big Data In Logistics Use Cases Big data is revolutionizing many fields of business, and logistics analytics is no exception. These applications are designed to benefit logistics and shipping companies alike. Did you know?
Many AI projects have huge upfront costs — up to $200,000 for coding assistants, $1 million to embed generative AI in custom apps, $6.5 Those costs don’t include recurring costs, which can run into the thousands of dollars per user each year. SMBs are particularly vulnerable to these cost increases.”
These changes can expose businesses to risks and vulnerabilities such as security breaches, data privacy issues and harm to the companys reputation. The benefits far outweigh the alternative. It also includes managing the risks, quality and accountability of AI systems and their outcomes. What is governance? AI governance.
Gartner also recently predicted that 30% of current gen AI projects will be abandoned after proof-of-concept by 2025. Many of those gen AI projects will fail because of poor data quality, inadequate risk controls, unclear business value , or escalating costs , Gartner predicts.
Looking ahead to the 2025 budget season my futurist colleagues forecast a drama-rich street fight for enterprise IT resources. With 2025 budgets expected to be tight, IT must have its “value story” ready. To wit, the average cost of a 30-second ad spot at Super Bowl LVIII was $7 million. Is this too much to ask?
According to Informaticas CDO Insights 2025 , 87% of data leaders expect increased investment in generative AI and data governance, yet only a fraction are leveraging these advancements for ESG efforts. Without robust data infrastructure, sustainability reporting can become fragmented, leading to inefficiencies and compliance risks.
It is projected that there will be over 77 million smart homes in the United States by 2025. Technological innovation has proved incredibly useful for this purpose, so we’ve compiled a list of smart energy inventions that are helping us all save energy costs and reduce our reliance on finite resources. Smart grids. The impact.
A key driver for this is the steep resource cost in keeping customized implementations apace with the latest features — a cost many CIOs forgo in favor of stagnancy, at the risk of falling behind. This is cumbersome and leads to additional cost.
According to industry analysts ( Gartner , Uptime Institute and 451 Research): By 2025, 80% of enterprises will close traditional data centers in search of a better solution to support their operations. This relieves customers of the capital expenditures and burden of running a data center on their own premises.
They are using big data technology to offer even bigger benefits to their fintech customers. The use of artificial intelligence technologies allows for improving the quality of service and minimizing costs. Benefits of Decentralized Finance: Transparency. Cost optimization. Benefits of Big Data: Customer focus.
The cost of compliance These challenges are already leading to higher costs and greater operational risk for enterprises. Clearly, compliance poses a significant operational risk that can only be overcome by robust systems and processes. zettabytes in 2020 to 181 zettabytes in 2025. billion in total fines.
Industry experts are projecting that 50 billion devices will be connected worldwide this year, with the amount of data being generated at the edge slated to increase by over 500% between 2019 and 2025, amounting to a whopping 175 zettabytes worldwide.
As a result, software supply chains and vendor risk management are becoming ever more vital (and frequent) conversations in the C-suite today, as companies seek to reduce their exposure to outages and the business continuity issues of key vendors their businesses depend on. “We CIOs who expect this protection out of the box are at risk.
It’s poised to become a major feature in the hospitality business by 2025 and one of the most important benefits of using big data. NFC benefits both customers and hotel owners for several reasons, including: Security. Guest room automation can bring multiple benefits to both hotel guests and hotel owners alike.
billion on big data by 2025. This figure will continue to grow as more online retailers discover the benefits of using big data for various purposes, such as marketing. You simply can’t afford to ignore the benefits of using big data in this business. There are a lot of benefits of using big data in the e-commerce sector.
A fleet must be outfitted with these technologies to benefit, whether natively or after the fact using add-on solutions. billion by the end of 2025 , up from $3.8 Growing requirement or not, there are many benefits of standardizing big data within fleet management operations. Organizations have already realized this.
Unsurprisingly, more than half of enterprise IT spending in key market segments will shift to the cloud by 2025, according to Gartner. [1] However, the transformative benefits of cloud cannot be realized (or may even be negated!) without a modern network to support it. 4] How can cloud-based network management help?
McKinsey & Company estimates that the annual increase of costs related to cybercrime will reach $10.5 trillion by 2025, as cyber risk management has not kept up with digital transformation posing serious risks to organizations’ security and revenue. The attack landscape has evolved to target critical infrastructure.
“This regulation aims to ensure that fundamental rights, democracy, the rule of law and environmental sustainability are protected from high risk AI, while boosting innovation and making Europe a leader in the field,” said the press release issued by European Parliament.
You can see the company’s winning submission document here , with lots of details about the business goals, technical infrastructure, benefits, and SAP products used. The outcomes are really impressive.
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