Security and AI are topping business spend as companies look for effective boosts


  • GSMA report claims cybersecurity spend set to rise by the end of the decade
  • Unsurprisingly, 5G is set to get 2.5x more investment than 4G by 2030
  • Telcos need to help enterprises undergo digital transformations

Most enterprises are not reacting to tough economic conditions by cutting costs, but rather they’re looking to boost revenue, new research has claimed.

A new GSMA report has said three-fifths of firms are now prioritizing revenue growth, customer experience and competitive positioning to help grow their companies rather than make reactive decisions to reduce costs.

But the study also found cybersecurity is at the top of many companies’ lists, with investments set to continue growing long-term.

Companies are investing in future growth

The report noted enterprises are planning to allocate a considerable 9% of their revenue during 2024-2026 to cybersecurity, with that figure climbing two percentage points to 11% during 2027-2030.

Besides increasing security, enterprises have also expressed a commitment to investing in artificial intelligence and improving their connectivity.

Most (85%) now see 5G networks and connectivity as important, with an average of 21% of digital transformation budgets set to be earmarked for connectivity – 13% for mobile and 5G and 8% for fixed and Wi-Fi. Between 2024 and 2030, investment in 5G is expected to be 2.5x great than in 4G, with high mobility sectors like automotive, transportation, logistics and warehousing driving much of this investment.

Finally, AI spend is set to continue as companies seek productivity and efficiency boosts. It already makes up for 14% of enterprise technology expenditure, with 90% of companies having incorporated the tech in some form, however the scope for growth is tremendous given that only one-third are using it in “advanced” ways.

“Telcos need to go beyond just providing network services since enterprises are increasingly looking for partners who can help them throughout their full digital transformation journeys, combining technologies such as 5G, AI, IoT and cloud to improve efficiency, security and drive revenues,” noted GSMA Intelligence Head of Research Pablo Iacopino.

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