Businesses will spend more on software than ever before, with AI leading the way
- Many of those who increase their budgets will do so by between 5% and 15%
- AI-enabled cyber attacks and new technology FOMO are to blame
- Implementing new software can be a challenge for some
Three-quarters (76%) of companies have said in a new report that they plan to increase their software budgets next year.
Three-fifths of those surveyed by Capterra reported that they plan to spend more and expect to increase their budgets by 5-15% from 2023.
With IT security and artificial intelligence at the top of the list, companies are clearly interested in protecting their networks and driving increased efficiency and productivity.
Software expenditure is increasing
Capterra attributes the increased spending on IT and AI to the “increasing sophistication” of AI attacks, but the research also suggests that many companies are simply planning to invest in new software because they fear missing out (FOMO). Two-thirds (67%) identified technological progress as an important external influencing factor.
However, in an age of endless software options, some challenges remain. Nearly two in five (38%) UK respondents are concerned that implementing technology will be a challenge for them next year, while employee training and upskilling (36%) and potential global and economic uncertainties (35%) are also stand in the way of successful software implementations.
“Timing is the key to successful technology adoption. Companies must find the right balance between moving quickly to keep pace with technological developments and making time to properly assess software options,” said Capterra analyst David Jani.
It took 60% of UK buyers four months to arrange a software purchase, but 86% were very confident in their final decision. Suggestions from industry experts (43%), customer testimonials (40%) and customer reviews (39%) proved to be crucial in the purchasing process. More than half (57%) of those who purchased new software in the past year also implemented a learning management system to help employees get started.
