Even entrepreneurs want to get using AI - here's what they need to know

• Half of entrepreneurs will increase IT investments this year, UBS finds
• Many are worried about higher taxes and geopolitical uncertainty
• Europeans among the most likely to increase AI and IT spending

New data from the UBS Global Entrepreneur Report has revealed the technology startup and small business world is in a healthy place, with three in five (61%) feeling optimistic about the prospects for their industries this year.

The news comes as more entrepreneurs look to invest in expansion, with investments in people and acquisitions on the cards for many.

That said, technology is also said to be a key focus area for entrepreneurs, with the report finding nearly half (45%) are expecting investment in AI infrastructure, applications and/or models, outpacing personnel investments.

Entrepreneurs are growing their businesses and investing more

Three in five (62%) now see AI as offering the greatest commercial opportunity for their industries, with two-thirds (67%) predicting AI will lead to improved productivity for a typical company in their industry by the end of the decade. Nearly half (47%) plan to increase IT and digital transformation spending over the next 12 months.

However, entrepreneurs are continuing to exercise a cautious approach, with many citing political uncertainty and/or instability (53%), higher taxes (42%) and major geopolitical conflicts (42%) as concerns in the next year alone.

Moreover, UBS revealed some key differences across the globe: European entrepreneurs plan to increase AI and IT spending, with digital transformation emerging as key focus areas; while respondents in the Americas will focus on personnel investments. Those located in Asia-Pacific and also Switzerland will focus on both strategic acquisitions and IT/AI growth.

The report also uncovered higher industry outlook optimism in the Americas (71%) compared with Europe (52%), Switzerland (50%) and Asia-Pacific (59%).

By analyzing how entrepreneurs perceive their industries, UBS hopes to understand the effects of the global pandemic and geopolitical conflicts on economic growth.

Head of Strategic Clients Benjamin Cavalli concluded: “This report captures the collective knowledge of some of the brightest business innovators we have the privilege to work with and highlights their insights on topics from their industry outlook to their business plans over a short-term horizon, and to the end of the decade.”

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