Majority of Australian CIOs will increase cybersecurity investment: Gartner

The majority of Australian and New Zealand CIOs said cybersecurity will receive the largest increase in investment this year due to regulation and the growing threat landscape, according to a new Gartner survey.

The survey noted that 87 percent of ANZ CIOs will up their investment, this is compared to 62 percent in the year prior.

Andy Rowsell-Jones, distinguished VP analyst at Gartner said while a significant amount of focus has been directed towards generative AI this year, cybersecurity remains at the top of the investment list again given the highly publicised data breaches they have seen across ANZ over the past 12 months.

“Every organisation’s risk and audit committee are worrying about a potential cybersecurity fallout and most industry regulators are actively pushing for improved competence,” he said.

Behind cybersecurity, 79 percent of ANZ CIOs are expected to direct the largest amount of new or additional funding in 2024 towards cloud platforms, followed by data analytics.

Despite the recent hype, AI and machine learning is ranked in sixth place, with investments directed towards increasing operational efficiency and bridging IT talent gaps.

Rowsell-Jones said this will change, however, once organisations move past the proof-of-concept stage, particularly for generative AI.

“Currently only a small number of organisations are edging towards production with their GenAI trials – deployment is when the real investment starts,” he added.

The top three technologies CIOs will decrease investments in next year are legacy infrastructure and data centre technologies, ERP and next-generation compute technology and application modernisation, the survey reported.

“While it’s surprising to see that investments in application modernisation will decrease next year, it’s unlikely that it has run its course,” Rowsell-Jones said.

“More likely, it has just been deprioritised in the face of other more pressing issues for ANZ CIOs.”

Australian and New Zealand CIOs have already been laying the foundation for democratised digital delivery with technologies such as low-code platforms, which 68 percent told Gartner they have deployed or plan to deploy in the next 24 months.

These CIOs said generative AI is the top game-changing technology for next year, which will also rapidly advance the democratisation of digital delivery beyond the IT function.

While only 10 percent of CIOs have already deployed generative AI technologies, 58 percent said they will deploy over the next 24 months.

Rowsell-Jones said generative AI platforms are reducing the barriers to adoption for software developers, which means the technology is poised for rapid deployment next year.

“ANZ CIOs should harness this capability and provide the guardrails to support and facilitate business technologists keen on GenAI adoption in the wider organisation,” he said.

According to the survey, business priorities next year will mix customers and regulators with financial performance.

ANZ CIOs cited excelling in customer or citizen experience, ensuring compliance and minimising risks, and improving operating margins, as the most critical outcomes from digital technology investments.

Interest in digital is undiminished, but ANZ organisations have become more realistic in their attitudes to it, according to Rowsell-Jones.

“Rather than trying to become the next digital giant, organisations are investing in digital enablement, either to improve cost and operational efficiencies, or to augment a traditional product set with digital capabilities so they can offer more services,” he said.

The other leading emerging digital technologies that enterprises in ANZ have already deployed or plan on deploying in the next 24 months include AI/machine learning, distributed cloud and 5G.