Horváth: Digital transformation is becoming the top priority of companies with the advance of AI

Digital transformation has regained its position as a top strategic priority for companies around the world, and the resurgence of digital initiatives is driven in large part by advances in artificial intelligence (AI), which are reshaping both internal operations and customer-facing processes, according to a study by Horváth, a global management consulting firm.

The study results show that while AI adoption is accelerating around the world, nearly half of companies are still in the early stages of their AI journey, signalling a significant opportunity for growth and innovation.

No fewer than 59% of executives surveyed by Horváth expect to break even on AI investments in 2026, although around 50% of them consider their companies to be in the early stages of AI adoption.

Secondly, in order to face the challenges of the current global economic climate, businesses need to promote agile organizational structures, define new leadership approaches, encourage a culture of rapid innovation and continuous adaptability, implement an extremely IT infrastructure and establishing robust supply chains.

Third, companies are developing transnational structures, which means that value generation, including new product development, is moving to growth markets. Key factors influencing this trend include optimized supply chains, favourable location conditions and cost efficiency. Successful transformations require redefining governance and collaboration models between headquarters and regional organizations, as well as developing new skills.

Regarding the risks associated with the transition to a digital economy, the number of cyber attacks has increased in the last 12 months compared to the previous edition of the Horváth study, with significant increases in industries such as defence (64%), retail (37%) and metalworking and mining (36%). However, awareness of these risks has increased across all industries, resulting in the successful rebuttal of most of these attacks.

“Digital transformation, powered by AI, is now more important than ever for companies around the world that want to improve operational efficiency, enrich customer experiences and create new business models. Organizations that embrace these changes and invest in AI capabilities will be better positioned to thrive in an ever-evolving digital landscape, and the Horváth team is ready to support companies and top executives with extensive expertise in business models, organizational structures, processes and systems, to successfully align their organizations for the future”, said Maria Boldor, Managing Director, Horváth Romania.

The “CxO Priorities 2024” study was carried out by the Horváth team following eight weeks of face-to-face discussions with executives (of which over 40% at CEO level) from 29 countries on all continents, representing a total of 14 industries, manufacturing (defence, car production, construction, energy, FMCG, mining and others) or from the service sector (insurance and financial services, banks, telecommunications, transport and logistics, etc.).