Navigating Egypt’s digital future: Insights from IBM’s CEO study 2024

By Marwa Abbas, General Manager and Technology Leader, IBM Egypt

 

As Egypt journeys towards its Vision 2030 strategy, aimed at creating  a knowledge-based, digitally connected economy, leveraging technology to enhance governance, economic development, and social inclusion. Digital transformation will be one of the key pillars to ensure that the country achieves this vision. The growing demand for online services, expanding digital economy, dynamic start-up ecosystem and the government’s focus on digital infrastructure, talent development, and regulatory frameworks will all provide a fertile ground for enterprises to innovate and scale. However, enterprises in Egypt, like their global counterparts face numerous challenges – the  rising inflation, supply chain disruptions and transport costs are just some of the obstacles that organisations face. Which emphasises the need for Egyptian CEO’s, to leverage technology particularly generative AI, to thrive in an increasingly dynamic global environment.

Adopting a mindset to adapt to an evolving landscape

As we navigate through this era of rapid technological advancements and economic uncertainties, the role of CEOs has never been more challenging or crucial. While 72% of CEOs see industry disruption as a risk rather than an opportunity, the journey towards digital maturity requires a multifaceted approach that encompasses leadership, culture, and strategic investments.  According to The 2024 IBM CEO Study, CEOs must face six hard truths—from people challenges to operations hurdles to data and technology limitations—to outcompete in the age of generative AI. Today’s leader must confront these six hard truths to steer their organisations towards sustainable growth and innovation. These insights resonate deeply with our experience at IBM Egypt, where we continually strive to align our strategies with the evolving needs of our clients and the broader market landscape.

 

Harnessing the Power of Generative AI

Generative AI is not just a technological advancement; it’s a paradigm shift with the potential to redefine industries. According to the IBM study, more than 59% of CEOs believe that competitive advantage will hinge on who can most effectively deploy advanced generative AI​​. But it is not just that; CEOs recognise that while technology is a powerful enabler, its success hinges on the human element—fostering a culture that embraces change and innovation. This aligns perfectly with Egypt’s strategy to build a digitally literate workforce capable of leveraging advanced technologies to create value.

The Six Hard Truths

To capitalise on the potential of generative AI, enterprises in Egypt must focus on several strategic imperatives:

1. The Imperative of Agility in Strategy Execution: The traditional five-year strategic plans have become obsolete. In a world where market conditions and technological capabilities can shift overnight, agility is key. CEOs must build organisations that can pivot quickly and efficiently; 62 per cent note that they will need to rewrite their business playbook to win in the future, rather than play to existing strengths. This requires fostering a culture of continuous learning and adaptability, supported by robust technical infrastructures and data-driven decision-making processes.
2. The Critical Role of Generative AI: Generative AI presents both an unprecedented opportunity and a significant challenge. While 64 per cent of CEOs recognise the need to adopt technologies faster than their employees can adapt, it is essential to ensure that AI implementation is accompanied by effective governance and employee training. At IBM Egypt, we emphasise the importance of integrating AI in a way that complements human capabilities, enhancing efficiency without compromising job security​​.
3. Addressing the Skills Gap: A key finding from the study is the necessity to bridge the skills gap. As CEOs push for technological advancements, they must also invest in upskilling their workforce. This dual focus on technology and talent is vital for achieving long-term success. 64 per cent of CEOs say that succeeding with AI will depend more on people’s adoption than the technology itself. We have initiated several programmes at IBM Egypt aimed at equipping our employees with the skills needed to thrive in an AI-driven world.
4. Leveraging Ecosystem Partnerships: In today’s interconnected world, no organisation can succeed in isolation. CEOs need to engage their business ecosystem partners strategically, leveraging external expertise and resources to drive innovation and growth. Our collaborations with public and private enterprises in Egypt exemplify how effective partnerships can create synergies that benefit all parties involved.
5. Navigating Regulatory Landscapes: Regulatory environments are becoming increasingly complex, particularly concerning data privacy and AI ethics. CEOs must proactively engage with policymakers and stakeholders to shape regulations that promote innovation while safeguarding public interests. At IBM Egypt, we advocate for policies that balance technological progress with ethical considerations, ensuring that advancements benefit society as a whole.
6. Sustaining a Culture of Innovation: Finally, the study underscores the importance of cultivating a culture of innovation. This involves not only investing in cutting-edge technologies but also encouraging a mindset that embraces change and experimentation. By fostering an environment where new ideas can flourish, CEOs can drive their organisations to new heights of creativity and competitiveness.

The opportunity paradox – embracing the unknown 

The path to Egypt’s digital transformation is clear, and the opportunities are vast. The insights from IBM’s 2024 CEO Study reinforce the urgency and potential of this journey. By embracing generative AI, we can drive unprecedented productivity and reveal new avenues. In this high stakes environment, we must strike the right balance between caution and courage – while moving faster than ever before. To reap the benefits of Generative AI, business leaders must let go of what has always worked and start tackling the hard truths holding them back. As leaders, it is our responsibility to drive this transformation with courage and conviction, paving the way for a future where technology and innovation are at the heart of our nation’s success. We need to react today – to prepare for tomorrow and ensure that we turn Egypt’s digital aspirations into reality.