Is Election Year Uncertainty Halting Tech Investments?

Technology

By Matthew Hearfield
September 24, 2024

Updated
November 20, 2024

0 min read

Michael Kolbrener

In this episode of AI to Z, host Anna Frazzetto sits down with Michael Kolbrener, CTO and founder of Architero, to explore the critical intersection of technology, leadership, and the shifting landscape of work. As the 2024 election approaches, Kolbrener discusses how companies are reacting with caution, particularly when it comes to AI investments.

This episode provides valuable insights into how both economic and technological trends are influencing corporate decision-making, offering key takeaways for business leaders navigating an uncertain landscape. Don't miss this timely discussion on the future of tech investments and workplace dynamics in an ever-changing world.

Listen to the full episode below:

Election year uncertainty

The difference between the choices is so significant and so much friction between them that I think people are paused to want to see what's happening.

Kolbrener talks about how during presidential election years, businesses often hesitate to make major investments, particularly in technology, due to the uncertainty of potential policy changes. This wait-and-see approach can slow down tech innovation and adoption across industries.

This sentiment underscores how businesses prefer stability when making substantial investments, especially in areas like AI, which require considerable resources and long-term planning. By delaying investments, companies hope to make more informed decisions once the political landscape becomes clearer.

Impact on tech investments

By now, if you haven't made an investment for twenty-four, you're not going to make one in twenty-four. You're going to wait it out and see what's happening.

In this episode Michael explains how many companies are cautious about implementing large-scale AI or digital transformation projects until there's more clarity about the regulatory environment, tax policies, or broader economic strategies that the new administration may introduce.

In addition to the political uncertainty, he notes that companies are carefully considering their next big tech investments, especially in the realm of AI, and are cautious not to invest too soon or too broadly in unproven areas. He explains that AI opportunities, while promising, require careful and well-timed investments to avoid misalignment with future technology trends.

AI adoption

While uncertainty can slow investments, Kolbrener notes that companies still recognize the long-term value of AI and are willing to invest strategically in this area. However, they approach AI projects carefully, ensuring that there's a clear ROI before moving forward.

Kolbrener stresses that businesses should avoid rushing into AI investments without fully understanding the benefits and risks. Investing too soon could put companies on the wrong path, as the technology continues to evolve rapidly. He highlights the need for patience, contrasting the AI boom with the overhyped blockchain trend from a decade ago.

Advice for companies

I think there’s an incredible opportunity to invest in technology right now, but it doesn't have to be in large-scale, all-encompassing projects.

Kolbrener advises businesses to focus on smaller, high-impact tech projects that can offer immediate benefits, rather than waiting for the perfect moment to make larger investments.

By keeping their tech strategies active, even with smaller investments, businesses maintain their operational momentum and avoid falling behind competitors who may be taking similar steps. Kolbrener's advice is grounded in the idea that flexibility and adaptability are key during uncertain times, and smaller projects are a practical way to balance both innovation and risk management.

Key takeaways

Election year uncertainty: Companies often delay major tech investments during election years due to the unpredictability of future regulatory and economic policies.
Impact on tech investment: The uncertainty causes businesses to hold off on large-scale technology projects, especially those involving AI, until there is more clarity on the political landscape.
AI adoption: While AI remains a priority, businesses are cautious, ensuring that investments are strategically aligned and offer clear returns rather than diving into unproven technologies.
Advice for companies: Rather than halting all tech efforts, companies should focus on smaller, high-impact projects that offer immediate benefits while mitigating risks during uncertain times.

Article and quotes have been edited for brevity and clarity