Welcome to Wednesday's issue of Business Transformation SmartBrief. Today we'll cover:

• CIOs must adapt to thrive in generative AI era
• DEI shifts leave companies with legal uncertainties
• Digital tech enhances sustainability in construction

Logistics companies worldwide are set to prioritize digitalization in 2026, with about 40% planning to allocate more than a 25% of their budgets to technology investments, according to a survey by Ontegos Cloud. Companies are focusing on predictive visibility and forecasting, but cybersecurity and compliance are not as highly prioritized. "Logistics and freight forwarder leaders are no longer asking if they should digitalize, they're asking how fast they can do it," says Oliver Gritz, founder and managing director of Ontegos.

Smart Take: Automotive logistics companies are looking at digital transformations of supply chains, while Europe's HGK Shipping is launching an AI solution in November. Meanwhile, Ingka Group, the largest IKEA operator, acquired an AI logistics technology company to boost its digital transformation.

Johnston Regional Airport in Smithfield, N.C., is aiming to be the first in the US to implement a digital remote tower, a modern air traffic control system that uses live video, high-tech cameras and radar. The Federal Aviation Administration is testing the system in Atlantic City, N.J., as a solution to the air traffic controller shortage. "The expectation is that it will be much more effective than a human being in a tower with a set of binoculars," says Johnston Regional Airport Director David Harris.

CIOs must excel at adaptability as gen AI rapidly transforms industries, according to industry experts. This shift requires a balance of risk and opportunity, a culture of experimentation and support from the company. "Adaptability demands energy, clarity and resilience," says Zoltan Vass of Global Tech Advocates. "These only come when you allow yourself to recharge."

West Virginia residents can now store digital driver's licenses and state identification cards on their Apple devices using an app announced by Gov. Patrick Morrisey. The app allows users to verify their identities with law enforcement and at many Transportation Security Administration checkpoints nationwide.

The legal landscape for diversity, equity and inclusion initiatives remains unsettled, with companies facing increasing challenges due to recent Supreme Court decisions, heightened regulatory scrutiny and evolving federal enforcement priorities. The Justice Department has issued civil investigative demands and encouraged whistleblower lawsuits, while the Equal Employment Opportunity Commission's enforcement slowed due to leadership vacancies but is expected to intensify following the appointment of a new commissioner. Companies are also contending with conflicting obligations across state and federal regulators, complicating their efforts to navigate compliance and avoid legal pitfalls.

Integrated digital systems are becoming essential for sustainable construction, helping teams track materials, reduce waste and streamline workflows without increasing costs or complexity. Custom applications tailored to specific jobsite needs can further enhance efficiency and sustainability, making green building more practical and appealing. This approach not only meets regulatory and tenant demands but also addresses labor shortages by creating a more efficient and satisfying work environment.