Business leaders are concerned about the impact the U.S. election will have on their ability to stay ahead of global competitors, according to a new report from Ernst & Young LLP. The survey finds that 74 percent of tech leaders think the results of the election will have an effect on their ability to stay competitive in the next two to four years. 

With tech leaders reporting they plan to make significant investments in artificial intelligence (AI) in the next 12 months, many are also reporting that these investments will be contingent on the election results. 

Specific focus areas of AI investment include hiring AI-specific talent, back-office functions and cybersecurity. As companies look to further develop AI initiatives, there will be a growing need to hire AI-specific talent, while also restructuring and/or reducing legacy job functions in exchange for other in-demand functions.

Tech leaders are most concerned about how the results will impact the regulation of cybersecurity/data protections, AI and machine learning, and user data and content oversight.

"Regardless of the presidential outcome, technology companies will continue significant investment in AI,” said James Brundage, Ernst & Young global and Americas technology sector leader. “However, all eyes will be on how election results impact the direction of fiscal, tax, tariff, anti-trust and regulatory policies, and the resulting impact on interest rates, mergers and acquisitions, IPOs and AI regulations. Coming off a sluggish tech market in 2024, the 2025 trajectory is bullish, as companies focus on raising capital to invest in growth and emerging technologies like AI," he said. 

New data shows that 82 percent of companies plan to increase their investment in AI by 50 percent or more in the next year.

Additionally, most tech industry leaders surveyed said they plan to allocate/reallocate resources toward AI investments in the next 6 to 12 months. Seventy-eight percent of tech leaders report their company is thinking about divesting non-core assets or businesses as part of their growth strategy during that time.

Tech leaders said around 63 percent of their organization's AI initiatives have successfully moved to the implementation phase. However, organizations that employ more employees report less success in moving AI initiatives to the implementation phase. 

More than 80 percent of tech leaders surveyed said they foresee reducing or restructuring head count from legacy functions to other in-demand functions, and 77 percent anticipate an increase in hiring for AI-specific talent. 

Additionally, 40 percent of technology leaders say their company plans to focus next year's AI investments on human capital efforts, such as training.

"As companies pivot to more investments in AI talent, there are key considerations for tech leaders as they strive to bridge the gap between AI investment and implementation," said Ken Englund, Ernst & Young Americas technology sector growth leader. "These include hiring talent with both hard and soft skills, offering AI training programs and upskilling their workforce."