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FIS' Global Innovation Report sought to understand the risks that today's executives face, how they're managing them, and how new technology is being leveraged to help.

According to the study, 83% of U.S. executives across industries said they have either already been impacted by financial risk or expect to be impacted within the next 12 months. Further, 53% of executives stated that they face budgeting issues when it comes to implementing innovative solutions. However, 95% of respondents are still turning to innovation to mitigate macro risks.

The findings suggest that even in today's challenging economic environment, U.S. executives still prefer to combat risk by augmenting their competitiveness through innovation:

• The most common innovation strategy was technology and systems innovation, cited by 60% of executives.

• 55% of those leaders cited becoming more competitive as the reason to pursue innovation in their technology and systems.

• Meanwhile, 53% of surveyed leaders reported that they're pursuing artificial intelligence (AI) to be more competitive, and 52% are pursuing generative AI tools to be more competitive.

• 49% reported the pursuit of embedded finance capabilities to improve their competitiveness, and 49% reported competitiveness as their reason for pursuing open banking capabilities.

"U.S. financial services firms have been leading the charge in adopting innovative technology to enhance security, customer experience and overall competitiveness," said John Durrant, Banking Solutions President at FIS. "Now, as the findings in this report suggest, business leaders everywhere are shifting from a 'wait-and-see' approach to a deliberate investment and experimentation strategy. FIS believes this trend will continue as automation and AI pose unique opportunities to streamline operations and enhance customer service while future-proofing against competitors who are diving into digital head first."

The report also sought to explore the variables that are impeding executives' ability to implement innovative solutions in response to their respective risks. While budget constraints were the top reported issue with 48% of firms experiencing it, a large portion of U.S. respondents also expressed internal struggles that pertain to talent and infrastructure.

The talent gap and a change-resistant culture are putting pressure on industry leaders who seek to proactively mitigate risk through technology:

• 50% of firms reported a lack of in-house expertise/knowledge.

• 49% reported resistance to change among employees.

• 48% reported a lack of internal technology and/or data.

• 44% reported a resistance to change among top management.

"While the adoption of emerging technology is key for growth, leaders must double-down on closing the talent gap in tech in order to realize the full potential of their investments," added Durrant. "As leaders lean on internal talent to help digitally transform their organizations, it is critical that it comes with a focus on up-skilling and building a culture of innovation that has employees rallying around change instead of running from it. Meanwhile, companies can close the skills gap faster by finding the right partners that can help them launch the innovative capabilities they seek."

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