Gartner predicts that by 2026 about 70% of multinational enterprises will adjust the countries in which they operate by hedging to reduce their geopolitical exposure. Credit: ipopba The geopolitics of digital infrastructure and regulation is rapidly becoming an issue that multinational CIOs must step up to lead, according to Gartner. Gartner predicts that by 2026 about 70% of multinational enterprises will adjust the countries in which they operate by hedging to reduce their geopolitical exposure. The research firm defines geopolitics as the geographic influence on power relationships in international relations. Presently, IT is playing an increasingly important role in the battle between nations to achieve supremacy in areas such as economics, military and society and this opens up new challenges and opportunities for CIOs, the report said. “Digital geopolitics is now one of the most disruptive trends that CIOs must address, with many now dealing with trade disputes, legislation coming from one country that impacts global operations, and government imposed restrictions on the acquisition and use of digital technology,” Brian Prentice, vice president analyst at Gartner said in a statement. About 41% of boards of directors in enterprises, according to a survey spanning 273 respondents across US, Europe and APAC, viewed geopolitical power shifts and turbulence as one of the biggest risks to performance. Data sovereignty will be a key focus area for CIOs Some of the key focus areas for CIOs, according to Gartner, are digital sovereignty, helping build a local technology industry, running a risk center and provide understanding of cyberspace in different nations. CIOs must be aware of international regulations and ensure that the enterprise’s IT operating model and practices comply with the regulations, Gartner said, adding that their role is to be aware of the legal environment and articulate to other executives how the IT organization supports compliance across the enterprise. As most governments or administrations look to build a robust local technology industry to circumnavigate geopolitical risks, CIOs, according to Gartner, should use this opportunity to proactively engage with governments. “They must localize specific initiatives into countries that have the best integration between local expertise and access to government co-innovation support,” the report says. Geopolitics could impact vendor selection Another issue that CIOs face due to geopolitics is the restriction of using certain technologies or vendors in a country due to its policies supporting the digitization of national military and security operations. These policies can lead to CIOs being mandated to buy from certain vendors. To get around the issue, CIOs must establish a vendor and technology risk center of excellence, chartered with a regular assessment of the exposure of key suppliers to evolving government restrictions, the firm said. Further, CIOs will have challenges from phenomenon such as national competition for control over the governance of cyberspace as it might impact operations of multinational companies. Although CIOs can’t have much say over governments in this matter, Gartner said they can advance the executive team’s understanding of cross-national competition for control over cyberspace and the impacts to their enterprise’s operations by leading an annual cyberspace environmental update briefing. Related content brandpost Sponsored by DataStax Disrupting the enterprise: How AI is redefining people, process, and productivity AI solves for both thought and time scarcity – and opens up a whole new world of possibilities. By Chet Kapoor, CEO, DataStax, and Prasad Setty, DataStax advisor and Stanford Graduate School of Business lecturer May 09, 2024 8 mins Machine Learning Artificial Intelligence news SAP, IBM Consulting partner to offer genAI-based services The partnership will see both companies offer generative AI-based services to enterprises via RISE with SAP offering. By Anirban Ghoshal May 09, 2024 3 mins Generative AI IBM SAP feature Essential skills and traits of chief AI officers CAIOs require a multidimensional skill set to drive innovation, establish and lead an AI-ready culture, and create tangible organizational results leveraging a complex and rapidly evolving technology. By David Weldon May 09, 2024 9 mins Artificial Intelligence IT Leadership case study How being cloud smart fosters growth at Saab Fuelled by global turbulence and increasing defense budgets, Swedish defense group Saab is meeting high demand by integrating efforts to become more software-driven, and central to managing it all is CIO Annette Eriksson. By Karin Lindström May 09, 2024 5 mins CIO Aerospace and Defense Industry Cloud Architecture PODCASTS VIDEOS RESOURCES EVENTS SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe