UBS report: entrepreneurs eye AI for industry growth

UBS has published its inaugural Global Entrepreneur Report, which explores how entrepreneurs are investing in artificial intelligence (AI) and digital transformation to foster business growth.

The report, derived from a survey involving 156 UBS entrepreneur clients across 26 markets, captures insights on technology investment, hiring plans, and perceived economic risks. Collectively, these businesses represent an annual revenue of approximately USD $19.1 billion.

Benjamin Cavalli, Head of Strategic Clients at UBS Global Wealth Management, said, "We believe it is crucial to explore what some of the world's top entrepreneurs are thinking about and preparing for as we approach the midpoint of a decade that has generated both solid economic growth and technological breakthroughs but also a global pandemic and geopolitical conflicts."

He further commented, "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."

The survey reveals that AI is a primary focus for many entrepreneurs, with 62% identifying it as offering the most significant commercial opportunity for their industries. Additionally, 47% of entrepreneurs plan to increase spending on IT and digital transformation in the coming year.

Regarding workforce investment, 54% of entrepreneurs anticipate businesses in their industries will invest in personnel, not only through hiring but also via training and incentivisation.

The report highlights regional differences in optimism and investment expectations. For instance, entrepreneurs in the Americas are particularly upbeat, with 71% expressing optimism for the coming year. Over five years, 86% anticipate significant or slight investment increases.

In Europe, 52% of entrepreneurs are optimistic about the upcoming year, and 87% foresee investment growth over five years. European entrepreneurs focus on strategic acquisitions, IT spending, and digital transformation.

Swiss entrepreneurs show optimism at 50% for the next 12 months, with 85% expecting investment growth over five years, particularly in strategic acquisitions and personnel. Similarly, in Asia-Pacific, 59% show optimism for the year, with 85% anticipating investment rises over five years in areas like AI infrastructure and data analytics.

Additionally, the report identifies political instability as the biggest concern over the next 12 months for 53% of respondents, followed by higher taxes and geopolitical conflicts. In terms of business-specific challenges, industry regulations and cybersecurity pose significant threats.

The report also explores future aspirations of entrepreneurs, revealing that 52% wish to allocate more time to personal interests, while nearly half consider investing more broadly, including in private equity or angel investing.

Overall, the UBS Global Entrepreneur Report provides a comprehensive overview of how entrepreneurs are navigating a landscape characterised by both technological advancements and economic uncertainties. It underscores the growing emphasis on AI and digitalisation, while acknowledging the multi-faceted challenges entrepreneurs face.