Over 70% of companies anticipate changes in business model, driven by AI, evolving customer preferences

More than a third of the organizations are expecting that their business model will undergo significant changes within the next three years, driven by technological advances, geopolitical shifts, evolving customer experiences, regulatory changes, economic volatility, and disruptive innovation, according to a report by Protiviti's Global Board Governance survey.

82% of the leaders from the technology, media, and telecom organizations anticipate moderate to significant changes to their business model over the next three years. Conversely, compared to other industry groups, a higher percentage of financial services organizations, that is 30%, anticipate the minimal level of changes to their business models in the next 36 months.

The stakes are particularly high regarding generative AI. More than 70% of the companies leverage generative AI as an opportunity while more than two in five 'disrupted' organizations view GenAI as a substantial threat to their business.

52% of the Europe-based leaders view GenAI as an opportunity compared to leaders from Asia-Pacific (47%) and the US (42%), respectively.

According to the report, almost three-quarters of survey respondents in disruptive leader organizations express confidence that their company's technology modernization initiatives are keeping pace with the industry and market disruptions.

The Media, tech, and telecom industries have higher levels of confidence (51%) that they are modernizing their technology infrastructure at a pace, sufficient to address disruption risks. On the other hand, healthcare organizations (27%) have lower levels of confidence that their technology modernization efforts are keeping pace with potential disruption risk.

Leaders in consumer products and services organizations noted that the pressure to sustain existing core businesses (39%) and capital constraints (30%) are the significant barriers.

For financial services organizations, regulatory constraints are the most significant barrier, and for media and technology 'capital' is the top barrier, followed by pressure to sustain existing core business.

The survey collaborated the resposnes of 1,800 board members, CEOs, and other C-suite executives.

"The next three years will be pivotal for the technology, media, and telecommunications industries, with 82% of industry leaders anticipating moderate to significant transformations in their business models. Disruptive forces—including generative AI, shifting customer expectations, regulatory changes, and economic uncertainty—are accelerating competitive shifts at an unprecedented rate. While some organizations perceive these disruptions as risks, visionary leaders recognize them as opportunities to redefine strategy and drive long-term value," Puneet Gupta, Managing Director, Protiviti Member Firm for India said.