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Digital Transformation
Market Narratives
Barriers to Digital Adoption
Feb 28, 2025
The report examines the key barriers preventing organisations from fully leveraging digital and AI technologies, spanning technical, cultural, and governmental challenges.
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The report examines the key barriers preventing organisations from fully leveraging digital and AI technologies, spanning technical, cultural, and governmental challenges. It highlights critical roadblocks such as legacy systems, AI understanding, and regulatory uncertainty, while outlining the organisational shifts needed to accelerate digital transformation.
Core Insights:
Technical challenges: Legacy systems and governance constraints
- Outdated legacy systems and accumulated technical debt remain the most significant obstacles to digital progress, limiting flexibility and scalability.
- Strict governance requirements and a shortage of data and digital skills further slow adoption, making it difficult for organisations to implement AI effectively.
Cultural barriers: AI understanding and leadership commitment
- Many organisations struggle with a lack of AI literacy, leading to hesitancy in adoption and missed opportunities for innovation.
- Insufficient prioritisation from leadership, combined with employee…