U.S. executives are feeling more competitive pressure when it comes to investing in emerging technologies compared to last year, according to a new survey by KPMG International, and businesses are struggling to keep up with the rapid pace of technological change.
According to the survey of 400 U.S.-based executives at companies with revenue of $250 million and above, a large majority of respondents are experiencing heightened concerns around market competition (73%), trust in new technologies (70%) and regulatory challenges (69%), surpassing last year’s levels and exceeding the global average.
While strategic concerns have intensified, operational worries like capacity constraints have slightly eased, signaling a shift in focus toward external pressures and trust issues in technology adoption.
Companies struggle to keep up with the pace of change – Meanwhile, 81% of companies are struggling to keep up with the pace of change, the survey found, with financial constraints being a major stumbling block for staying competitive. The survey reveals that 56% of organizations often feel they don’t have the budget to keep up with the rapid technological advancements. Despite prioritizing the adoption of new technology to add value to their business models, 58% of organizations still face weekly disruptions due to flaws in their legacy systems, highlighting the challenges in balancing modernization with existing infrastructure.
Digital transformation: Progress in improving profitability and performance – Despite these challenges, the survey also highlights the positive impact of digital transformation efforts on profitability and performance. A significant majority (88%) of U.S. executives report improvements in these areas as a result of their digital transformation initiatives. This marks a substantial advancement from 2023 when only 45% reported such improvements.
Cybersecurity both the top priority and top barrier to transformation – Cybersecurity is both the top priority and top barrier to transformation for businesses. With 43% of respondents considering cybersecurity capabilities the key attribute to thrive in a digital economy, organizations are placing critical importance on safeguarding their digital operations. At the same time, cybersecurity and privacy concerns, along with unaddressed tech debt, are the respondents’ top barriers to digital transformation, emphasizing the need to modernize legacy systems to move forward on their digital transformation journeys.
Vast majority see business value from their AI investments – In terms of AI adoption, U.S.-based respondents report results in line with the global average, with 74% already generating business value from their AI implementation. Of this group, 39% have AI use cases delivering business value and 35% are scaling AI with ROI achieved. The focus remains on advancing maturity levels to unlock broader benefits and move beyond proof-of-concept stages. U.S. executives favor collaborative and democratized approaches to AI experimentation, with minimal reliance on top-down initiatives. Looking ahead, U.S. respondents expect AI to transform knowledge work by automating tasks and redefining roles.
The U.S. lags behind global peers in embedding data and analytics – The survey reveals that U.S. respondents lag behind global peers in embedding data and analytics practices. Furthermore, the survey reveals that U.S. respondents give lower prioritization to extracting insights and fostering a data-driven culture compared to their global peers.
Companies prioritize environmental key performance indicators and ensure initiatives target sustainability goals – The survey also highlights the U.S. respondents’ prioritization of environmental key performance indicators and sustainability goals. Ranking second in performance indicators, just behind financial considerations, U.S. respondents place a stronger emphasis on environmental metrics compared to the global average. Specifically, 71% of U.S. organizations ensure that their tech investments directly target sustainability and social responsibility goals, slightly above the global average.
