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Ernst & Young: Tech sector is “brighter than 12 months ago” as businesses eye AI company acquisitions

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Companies consider AI the most promising technology, offering avenues for expansion across hardware, software, and services segments

In 2024, technology companies are eyeing a strategic blend of small- to medium-sized AI company acquisitions, corporate investments, and partnerships as the optimal path for expansion, according to insights from Ernst & Young .

Amidst macroeconomic weaknesses, firms in 2023 resorted to cost-saving measures and rightsizing to strengthen margins. Despite the potential, EY cautions that many organisations remain in the early stages of AI maturity. The firm advocates for establishing an “AI control tower” to ensure safe and ethical AI deployments with a human-centric approach.Alongside AI, EY identifies several other top opportunities for tech companies in 2024.

Advanced players are diving into ambitious projects like enterprise order fulfilment and supply chain optimization, although grappling with a shortage of skilled talent.Getting a trained workforce is but a part of the equation. The key to successful adoption is to ensure that the board and management fully embrace the GenAI strategy.”

 

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