Citi Commercial Bank 2024 Global Industry Insights Report

DIGITAL, TECHNOLOGY & COMMUNICATIONS The D,T&C industry has shifted from trying to inflation-proof their cash piles to going all in on AI and looking to expand internationally. That hints at an industry more at ease with higher costs and one that’s looking to expandmore than ever. D,T&C respondents reported that digitizing and automating operations and keeping up with technological changes as major priorities. This time a year ago, AI and tools such as language processing chatbots had yet to fully catch fire in wider society. That much could also be said for AI tools within the DT&C industry. Now, though, that has completely changed. ALL INON AI Some 63% of respondents are already using AI in their business operations— that’s more than double the rate of select other industries featured in the report. Almost half of those surveyed (45%) want to develop AI solutions in-house versus a third (32%) who would rather do so with an outside vendor. At a time when all industries are prioritizing keeping costs down, it’s surprising that DT&C companies favor more expensive in-house AI solutions. Respondents think the expense is justified as bespoke AI will better help them to automate professional departments (such as finance) and give them the edge in R&D. Storm weathered, companies are adding new markets and embracing bespoke AI MOOD SHIFT AS PRESSURES EASE FURTHER Some 67% of D,T&C respondents are satisfied with their financial progress. That figure is up from last year’s 46%, which was low due to dislocated public markets and what respondents saw as limited access to Venture Capital money. Those worries have faded and been superseded by an emphasis onmanaging cash flow. Inflation is still a pressing concern for 68% of those surveyed and almost as many (60%) see keeping costs down as the biggest obstacle to success. Focus on capital management and fiscal discipline are expected to intensify as companies seek to domore with less. Three in five of respondents—more than in any other industry—believe case studies of successful strategies would help. SEEKING NEWHORIZONS Despite persistent geopolitical tensions, D,T&C respondents continue to prioritize international expansion to scale up and expandmarket share. In 2023, a survey-leading 66% of D,T&C respondents said they were considering expanding their operations to new international regions. In 2024, D,T&C once again lead that charge with 74% saying they would consider international expansion in the next year. Asia, Europe and North America all received similar levels of enthusiasm; those not considering expanding explain that they are already global. FROM ‘IDLE CASH’ TO FINDING IT IN THE FIRST PLACE In 2023, D,T&C companies expressed a desire for banks to help them find better options for investing idle cash as inflation left a dent in the value of their reserves. This time around, with inflation starting to abate, that’s been replaced by improving working capital as those same companies look to expand. Also, finding simpler ways to enter and scale up in newmarkets has remained a priority for those companies. “We use an AI trip planner for upsales and a dynamic pricing solution in several regions worldwide.” Czechia-based company with annual sales turnover of between $10million and $24million. “We are implementing AI in various areas for our clientele. In some verticals it’s just at first steps. In others it’s already somewhat mature in everyday use. We estimate AI will be spread in every aspect of everyday routines like mobile phones.” U.S.-based company with annual sales turnover of between $25 million and $99 million. “The biggest trends I see for 2025 are an even greater focus on working capital management and enhanced discipline with expenses.” Thierry Jenar Thierry Jenar Global Head of Digital, Technology & Communications (D,T&C), Citi Commercial Bank