Almost three quarters (73pc) of private businesses are investing in areas such as AI, cybersecurity and digital transformation – the highest proportion of any region in the country – according to KPMG’s first ever Private Enterprise Barometer.
Joe Faulkner, KPMG’s East Anglia office senior partner, said businesses embracing technology are “thriving”.
“We’re increasingly seeing businesses of all stages of the lifecycle prioritising digital operations to support expansion,” he said.
“The East of England boasts a particularly high proportion of SME businesses, and within this segment we’re seeing a marked investment in technology.
“The businesses that are thriving are those that understand embracing technology is a way to ensure resilience and support growth.”
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Joe Faulkner, KPMG’s East Anglia office senior partner (Image: KPMG) However, businesses are facing increasing hiring costs, and Mr Faulkner said tech skills have been “scarce for sustained periods”.
“Investment in technology transformation is attractive because it facilitates improved agility, efficiency and productivity for private businesses’ operations,” he said.
“This shift also coincides with a number of large ‘on-premise’ technology platforms coming towards end-of-life and businesses transitioning to cloud-based solutions.
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“As the fastest-adopted business technology in history – and one that is accessible at all price points – AI continues to drive business decisions.
“Whether its boosting productivity in customer contact centres or improving back-office processes, businesses are exploring AI opportunities to reduce cost and enhance outcomes.
“Cybersecurity also remains a significant investment. In the past few years, we’ve seen businesses across all sectors and of all sizes targeted by cyber criminals.”
KPMG’s London office (Image: KPMG) KPMG’s 2024 CEO Outlook Survey found that cyber-attacks were UK CEOs’ number one risk, ahead of geopolitics, supply chain instability and operational issues.
AI BENEFITS FOR BUSINESSES
Mr Faulkner said the benefits for businesses investing in AI are “far-reaching”.
“Because back-office processes tend to be consistent across sectors, all companies have an opportunity to consider how they can better manage their business with tech enablement – particularly finance and HR processes,” he said.
“At the same time, it’s important that management teams recognise the diverse tech opportunities on offer in the middle and front office, which are likely to vary more dramatically across businesses depending on the sector and structure.
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“From logistics clients looking at route planning and mapping to optimise utilisation and efficiency, to retail clients targeting personalised product recommendations, customer service automation, supply chain optimisation, inventory management and demand forecasting – the opportunities on offer are wide-ranging.”
Joe Faulkner, KPMG’s East Anglia office senior partner (Image: David Johnson Photographic) He said KPMG’s hospitality clients have been digitalising their customer experience, with food and drink companies launching apps to drive loyalty, simplify ordering and offer price promotions.
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He added: “A great example of this is in our audit work, where AI allows our teams to look at complete data sets and identify and focus on the areas of greatest risk.”
