1. Metals leaders continue to invest in technology
In 2023, more than 50% of metals leaders indicated a slight or significant increase in their technology investments. And 16% stated that they expect to invest 5% or more of their annual revenue in enterprise technology and digital solutions, up from only 6% of respondents in 2022, which brings metals companies more in line with other industries.
It’s no longer an option to wait on the sidelines of innovation. And year after year, metals leaders are demonstrating how critical technology investment is to their sustained growth.
2. Adoption uncertainty remains a chief concern
Adoption uncertainty keeps metals leaders up at night, and it remains the biggest digital transformation challenge for metals companies. There’s an eagerness to invest in new technologies, but questions about integrating technology and user adoption remain. Metals leaders understand how important it is to get buy-in at every level to maximize their technology investments.
Because of adoption uncertainty, metals leaders want to bring people to the center of digital transformation, and they realize how important robust change management programs are to the long-term success of their technology investments.
3. AI amplifies uncertainty
When asked about technologies not currently in use that they plan to use in the next five years, metals leaders said AI was their number one choice, with a large jump from 32% in 2022 to 41% in 2023. At the same time, respondents described AI as one of the biggest challenges metals companies face as they weigh the potential opportunities and risks surrounding employee adoption.
Despite unanswered questions, the future of AI is already here, and its impact is already evident across the metals industry. Metals leaders are ready to invest, but first they need answers to critical questions to maximize opportunity and minimize risks.
4. Cybersecurity concerns keep growing
When it comes to the biggest challenges for metals companies, cybersecurity remains the number one IT-related risk. Cybersecurity attacks are increasing, and 63% of metals leaders indicated that cybersecurity is their biggest challenge surrounding digital transformation. This percentage is up from 59% in 2022 and 35% in 2020. AI cyberthreats compound the worry about cybersecurity, and metals companies want to make sure that new AI tools don’t compromise their valuable data.
Growing concerns regarding cyberthreats in the metals industry underscore the reality that cybersecurity can no longer be an afterthought when creating and executing a digital road map. Rather, cybersecurity needs to be a central component of any plan.
