EDITOR ’ S QUESTION

WHAT STRATEGIES CAN BUSINESS AND TECHNOLOGY LEADERS ADOPT TO EFFECTIVELY BALANCE IMMEDIATE AI INVESTMENTS WITH LONG- TERM SUSTAINABILITY OBJECTIVES ? outline their financial benefits . Almost three-quarters ( 71 %) agreed that activist shareholders are more concerned with their company meeting quarterly earnings targets than its performance against long-term sustainability metrics .

Respondents also believe there is an opportunity for AI to support sustainability performance , with 70 % agreeing that technology and AI hold the answers to many of the key sustainability challenges society faces .

Research shows C-levels ’ interest in AI continues to drive strategy and investment , but to what cost is this affecting ESG targets and greener operations ? We get insight on the tightrope balance from Belinda Finch , CIO at IFS ; Dr Anino Emuwa , Managing Director of Avandis Consulting ; and Levent Ergin , Global Chief ESG Sustainability Strategist at Informatica .

The survey of 100 UK CEOs , which provides insights on AI , capital allocation , investment , sustainability and transformation strategies , found that 61 % of UK CEOs said they felt more optimistic about their company ’ s profitability compared with 12 months ago .

When considering their strategic priorities for the next 12 months , half ( 50 %) of all respondents are prioritising investment in technology , including AI , to improve growth and productivity , closely followed by enhancing data management and cybersecurity ( 49 %).

CEOs and investors diverge on sustainability focus over next 12 months

Whilst UK CEOs are focused on technology investment in the immediate future , achieving net zero remains a long-term priority .

Over half of respondents ( 56 %) said sustainability was a higher priority compared with 12 months ago . However , CEOs are facing challenges in implementing robust ESG strategies , with 47 % agreeing that their management teams struggle to present a strong business case for sustainability investments that clearly

“ For UK CEOs , by far the most compelling immediate priorities involve enhancing existing technology to improve growth and productivity , as well as boosting data management and cybersecurity ,” said Silvia Rindone , UK & I Managing Partner for Strategy and Transactions , EY . “ However , this has come at the expense of achieving sustainability targets which are now considered more long-term priorities .

“ This divergence between short-term financial returns and decarbonisation is shortsighted , so business leaders must ensure they remain committed to delivering these targets to move towards a more sustainable future ,” Rindone added .

Strategic transactions remain a key focus for UK CEOs

Strategic transactions remain high on the agenda for UK CEOs , with 98 % saying they expect to actively pursue transaction initiatives over the next 12 months . Of these , 79 % are considering divestments , IPOs , or spin-offs ; 42 % are looking at joint ventures or strategic alliances with third parties and 33 % are considering M & A activity .

Around two-fifths ( 42 %) of those considering a strategic transaction said they were doing so to access new geographies , 39 % to secure supply chains and 36 % to acquire technology , new production capabilities or innovative start-ups .

“ UK CEOs are using strategic transactions to achieve their near-term priorities , with most looking to divest assets over the next 12 months to future-proof their business ,” said Rindone . “ However , it ’ s imperative that boards look beyond the short-term efficiency and productivity gains these transactions can bring and ensure they are continuing to focus on core operations , while actively looking for opportunities to raise capital to invest in their remaining portfolio .”

30 INTELLIGENTCIO EUROPE www . intelligentcio . com