GenAI sparks hope & unease for tech and telcos in 2024

2024 brings a blend of hope and concern for the tech and telco sector. Onebite, an independent B2B marketing agency, has provided in-depth insight into these trends through their recent research into the challenges and opportunities faced by tech marketers in the coming year. The report reveals both growing anxiety over the impact of Generative AI (GenAI) and a strong optimism for an increase in marketing spend within UK businesses.

The research indicates that the coming year will likely present some obstacles for the tech and telco sector. Economic uncertainty, escalating costs with diminished budgets, and skills shortages form a troubling triumvirate that marketers will need to surmount. Despite these challenges, the report suggests marketers are rolling up their sleeves, preparing to tap into, and maximise, data, productivity, and processes in an endeavour to support their needs for growth.

The study also found that the core concerns for many in the industry orbit around economic uncertainty and the expense of doing business. Although recent months have seen a decrease in inflation, static economic growth is predicted to continue exerting pressure. This strain will likely be exacerbated by skills shortages as businesses grapple to attract and retain the talent needed to stimulate growth.

Besides these concerns, the report also underlines the apprehension surrounding GenAI - technology that can generate content including text, images, audio, and data analysis. It emerged as a top concern among decision-makers in large businesses, who view it as one of the most formidable upcoming challenges, comparable to concerns regarding inflation, costs, and economic uncertainty.

Kiri Craig, Managing Partner at onebite, explains, "On the one hand, GenAI offers the potential for cost savings and improved products and services. On the other, it increases the number of risks that may require mitigation." Craig points out that the implementation of GenAI platforms could potentially amplify a company's third-party reach, thus raising security concerns and potentially leading to data silos that require considerable time to manage and integrate.

Despite these challenges, the study also brings forward some encouraging signs for marketers and PR professionals. The analysis revealed that 61% of decision makers expect their brand spending to increase this year, with a striking 88% of decision makers in the Telecoms sector agreeing that marketing will be a top priority for 2024.

Craig added, "For many in the Tech and Telco space, the ability to be consistent in their marketing approach was hampered by the pressures heaped on the sector throughout 2023. Fortunately, it seems marketers see 2024 as the year to regroup and rebuild that consistency. This means being laser-focused on where they can maximise productivity, spending, and processes to build commercial success."

With customers continuously seeking brands that reflect human connection, understanding, and empathy, Craig asserts, "it is crucial that businesses align their brand values and approach to this appetite."