AI and tackling tech debt put a gap between ambitions and reality. Contents 03Foreword New frontiers 05 Foreword ThedataispointingtothisyearbeingtheyearofROI—notjustAI,buttechnologyoverall.”—Marcus Murph, US Technology Consulting Leader shifts in the business landscape, organizations aregrappling with the dual challenge of leveragingemergent technologies while bridging the gap between this discussion is the transformative potential and currentchallenges of artificial intelligence (AI), generative AI(GenAI), and agentic AI, which are reshaping priorities and into these dynamics, uncovering the aspirations, hurdles,and strategic adaptations of IT executives as theynavigate the complexities of digital transformation. KPMGinterviewed 2,500 global tech professionals, including 648from the US, from companies with more than $100 million continue to contend with foundational challenges suchas technical debt and IT budget constraints. The findingsfrom the survey illuminate this paradox of significantinvestment alongside enduring structural issues. Thesurvey also highlights the importance of agile, adaptive the opportunities and challenges of quantum computing. financial investment as well as in harnessing substantialreturns from their efforts in digital transformation. the full potential of innovation in the years ahead. the actual progress of their technology implementation, |Energy and extractives|Financial services|Governmentand public sector|Healthcare and life sciences|Industrial manufacturing|Logistics and transport|Media andentertainment|Technology|Telecom Keyfindings Challengeswithtechimplementation AI-firstenterpriseambitions US companies aim to become AI-first,integrating AI into every aspect of operations.Only 31 percent claim they are innovatingand deploying AI use cases at scale,delivering ROI across multiple use cases, with79 percent expect to reach that level by 2026. 2024Despite strategic investments, techimplementation remains difficult. Only10 percentof US firms report their techimplementation progress on averageas fully scaled and continually evolving, AmbitionversusrealityintechtransformationUS companies invest heavily in technology and see higher financial returns than global peers; only a small fractionhave fully scaled and evolved their digital strategies. WorkforceandtalentgapThe IT talent gap is narrowing, but findingqualified workers, especially for AI, is still achallenge. Fifty percent say lack of talent isholding back digital transformation plans.Only40 percentof respondents say theirworkers feel left behind by tech changes,down from 67 percent last year. USdigitalleadershipUS firms achieve greater returns from digital transformation than the globalaverage. Their optimism is high, with95 percent expecting revenue growthin the next two years. Cost constraints and legacy systems cause frequent ITglitches, affecting 40 percent of US firms. Over half say Quantum computing is still immature, butleading firms are experimenting with the AI is reshaping the tech stack, with rapidinnovation outpacing adoption. Business 40%the cost of fixing tech debt prevents new investments.A back-to-basics approach is recommended beforepursuing emerging technologies. technology. Quantum is seen as both athreat (to current encryption) and a solution(for cybersecurity). transformation promised by AI is still emerging;companies report some productivity gains butno major workforce reductions yet. ThegapambitionandrealitybetweenIn a climate of ongoing disruption and strong competition, technology investment alone doesnot ensure growth. This year’s survey reveals asignificant gap between organizations’ goals andtheir success in implementing new technologies. DigitaljourneysintheUSoutpacetheglobalaveragefinancially Fromwhatweseeinthemarket,organizationsarefindingtechimplementations,particularlyAI,morechallengingthantheyanticipated,whichaccountsforthegapbetweenambitionandreality.” US companies investing heavily inthe latest technologies. But moresignificantly, companies are seeingtheir tech investments pay off,achieving financial value from their GenAI is certainly a reason for the influx of dollars, butthe survey reflects overall optimism about technology ingeneral. Nevertheless, the report revealed a gap betweenwhat companies aspire to achieve and what they have$174M $190 million annually for the US, on average, versus the$174 million global average. Additionally, US companiesare getting higher financial returns from their digital techinvestments than their global peers, likely due in part tocumulative investments over several years. Accordingto the survey, US firms saw returns on average of $293million in the past 12 months, compared to the global and focus on use cases and experimentation, especiallyin AI, compared to other regions that have greaterregulatory controls and where companies are focusingon their governance structure. Adisconnectbetweenaspirationsandachievement