Cloud Infrastructure: The Unsung Hero in the AI Revolution

In the race to harness the power of artificial intelligence, businesses are increasingly recognising the critical role of cloud infrastructure. A recent report, ‘Reimagining Cloud Strategy for AI-first Enterprises,’ jointly produced by Infosys and MIT Technology Review Insights, highlights the state of cloud readiness for AI adoption among global industry leaders, and reveals that while companies are investing in cloud infrastructure, most are still in the early stages of leveraging it for AI.

The study, which surveyed 500 executives from companies with at least US$500m in revenue, reveals a landscape where organisations are grappling with the complexities of preparing their infrastructure for the AI revolution. While 67% of respondents claim to have “developed” or “advanced” cloud infrastructure, the integration of AI into business operations remains in its infancy.

This disparity between cloud readiness and AI implementation is striking. Despite the majority of companies boasting sophisticated cloud systems, only 8% report having comprehensively integrated AI into their business processes. The vast majority (48%) of organisations are still in the experimentation phase, highlighting the challenges of transitioning from cloud capability to practical AI deployment.

“Although 67% of executives have advanced cloud infrastructures, only a small percentage have fully integrated AI into their operations,” said Laurel Ruma, Global Editorial Director, MIT Technology Review Insights. “Despite concerns about data security and privacy, a majority are planning significant investments in cloud technology for AI in the coming years. It is clear that cloud-enabled AI is the future, and companies are eager to invest.”  

Organisations must optimise cloud systems for AI initiatives

The report identifies several strategies companies are employing to optimise their cloud systems for AI initiatives. Half of the executives surveyed are using cloud services primarily for data integration purposes, while 30% are leveraging cloud infrastructure for computing capacity. Surprisingly, only 13% have a detailed roadmap for how their cloud investments will advance AI adoption beyond these basic functionalities.

This lack of strategic planning is a significant hurdle in the journey towards becoming an AI-first enterprise, as Mohammed Rafee Tarafdar, Chief Technology Officer at Infosys, notes. “Today, we are in the early stages of reimagining enterprise with AI and as we move towards a human plus AI collaborative state, cloud and data will be the catalyst in scaling AI.

“However, just 13% of the executives have a ‘detailed roadmap’ on how cloud investments will advance AI adoption beyond data and computational power. By leveraging the cloud and adopting responsible AI practices, businesses can navigate this transformation and achieve sustainable growth.”

The report also finds that security and ethical concerns continue to represent major obstacles in the path to cloud-ready AI systems. 45% of respondents cite worries about data security, ethical use of data, privacy, and overall safety as limiting factors in their organisation's cloud readiness for AI. These concerns highlight the need for robust governance frameworks and responsible AI practices as companies venture deeper into AI territory.

Despite these challenges, the future of cloud-enabled AI looks promising. A staggering 71% of executives expect their spending on cloud infrastructure for AI to increase by at least 25% in the next two years, with 27% predicting a 50-100% increase. This projected surge in investment underscores the growing recognition of cloud infrastructure as a cornerstone of AI strategy.

However, throwing money at the problem is not enough. As Anant Adya, Executive Vice President at Infosys, explains: “Along with the ever-increasing relevance of cloud, we are also seeing that the focus and resources of several companies are towards implementing fully integrated AI systems. They expect to see significant growth in spending on this over the next several years.

“With 71% of executives expecting spending on cloud infrastructure for AI to increase by at least 25% in the next two years, it is clear that an integrated cloud and AI strategy will be the foundation for AI transformation for organisations moving forward.”

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