Does Age Affect Technology Adoption?

On May 15, I attended Forbes’ event on digital transformation leaders. During the event, I was given a magazine titled “Millionaires 2024.” Upon reviewing the average age of Mexico’s leading millionaires, it struck me as a revelation of what might be holding the country back in its digital transformation: the age of our CEOs, CFOs, and legal directors. 

It is likely that one of the main issues we face in Mexico is that our top executives are, on average, over 60 years old. They were not born with a clear understanding of what technology means. Their view of technology came when they were already deep into their careers. The digital boom took place in the last 20 or 25 years, and this boom clearly occurred when these executives were in their 40s or even 50s, when their risk aversion and desire to learn new things was relatively low. 

This is affecting digital transformation and, consequently, cybersecurity in Mexico. In the next 15 to 20 years, we will see a true digital transformation in the country. Why? Because we would assume that the new CEOs and Mexican millionaires will be people who have had a more native connection with technology, digital transformation and cybersecurity.
 

The Influence of Age on Cybersecurity Investment

Cybersecurity is a constantly evolving field that requires continuous adaptation and learning. The average age of executives can influence their perception and investment in cybersecurity in several ways:

• Technological Adaptability: Younger executives may be more familiar with emerging technologies and, therefore, more aware of the cybersecurity risks involved. This could lead to a greater willingness to invest in cybersecurity.

• Perception of Risk: Experience and tenure can affect how executives perceive risks. Executives with more years in the industry may not see cybersecurity as an urgent priority, especially if they have not faced significant incidents in the past.

• Innovation vs. Tradition: Older executives may be more inclined to follow traditional risk management methods, while younger executives might be more open to innovating and adopting new cybersecurity strategies.

• Education and Awareness: Continuous education is crucial in the field of cybersecurity. Executives who invest time in learning about current threats are more likely to recognize the importance of investing in cybersecurity.

• Generational Change: As the generation of younger executives rises to leadership roles, they are likely to bring with them a more digital mindset and a proactive approach to cybersecurity.

• Pressure From the Business Environment: Regardless of age, executives face pressure to comply with cybersecurity regulations and market expectations, which can drive investment in cybersecurity.

Globally, companies allocate, on average, at least 12% of their information technology (IT) budgets to cybersecurity.

The global expenditure on IT for devices, including PCs, tablets, mobile phones, printers, as well as data center systems, enterprise software, and communications services, amounted to US$4.7 billion in 2023. By 2024, IT spending is expected to rise to a staggering US$5 billion worldwide.

Older Adults: In general, older adults tend to take longer to adopt new technologies compared to younger adults, according to the study, "Understanding Individual and Age-Related Differences in Technology Adoption," by W.A. Rogers, T.L. Mitzner, W.R. Boot, NH Charness, S.J. Czaja, J. Sharit. This could be due to several reasons, such as less familiarity with technology, fear of change, or a lack of perceived usefulness. However, it is important to note that within the older adult demographic, there are individual differences in adoption rates.

Younger Adults: Younger people typically have a more positive attitude toward new technologies, and their decisions to use technology are more influenced by this attitude, according to the study, "Age Differences in Technology Adoption Decisions: Implications for a Changing Workforce," by Viswanath Venkatesh. Young adults are early adopters and are more willing to try new and innovative solutions.

Factors Influencing Adoption: For older workers, decisions about technology use are more influenced by subjective norms and perceived behavioral control. Over time, the influence of subjective norms may decrease, but perceived behavioral control remains a significant factor.

Workforce Change: As the workforce becomes more age-diverse, it is imperative for technology developers to actively recognize and consider these age-related differences. This understanding is crucial for successfully adopting new technologies across age groups.

While age may be a factor in technology adoption, individual differences within age groups and the ease of use and perceived usefulness of technology also play a crucial role. Organizations must provide the necessary support and training to facilitate the adoption of new technologies in age-diverse demographics.

Furthermore, it is worth noting that major business schools do not offer specific training on cybersecurity for executives.

What to Do?

3 Options:

1. Wait until you never face a cyberattack – Probability: VERY LOW.

2. Train your executives on digital risk – Effectiveness: VERY HIGH.

3. Wait for a client, authority, or international regulation to require cybersecurity controls – Probability of business loss: HIGH.

In an increasingly digital world, cybersecurity is essential. Here are five actions you should consider for your company:

1. Executive Training: Educate executives about digital risks and the importance of cybersecurity. Awareness is key to taking proactive measures.

2. Anticipate Incidents: Ensure you have plans in place to respond to cyberattacks. Conduct drills and keep your team prepared to act quickly.

3. Educate the Entire Company on Cybersecurity: It is not an expense, it is an investment. Training and developing employees on cybersecurity is essential.

4. Security Audits: Conduct regular audits to assess risk exposure. Identify vulnerabilities and take corrective action.

5. Supply Chain Protection: Evaluate and ensure the security of suppliers and business partners. Attacks through the supply chain are a growing concern.