Kyndryl: The Challenges of AI Adoption and IT modernisation
In an era of rapid technological advancement, businesses worldwide face persistent challenges in adopting artificial intelligence (AI) and modernising their IT infrastructure. The push for digital transformation has become a constant in the corporate world, with companies continuously investing in AI, cloud computing and cybersecurity. However, the pace of innovation often outstrips many organisations’ ability to adapt, creating a complex landscape of opportunities and risks that evolves year after year.
Kyndryl, a major IT infrastructure services provider, has released its Readiness Report, shedding light on these ongoing challenges. The study, surveying thousands of senior decision-makers across various industries and global markets, reveals a consistent pattern of contrasts between executives’ confidence in their current IT infrastructure and their readiness for future challenges.
The AI talent conundrum
One of the most persistent issues highlighted in the report is the AI talent gap. A significant portion of executives, particularly in the UK, struggle with acquiring and retaining AI talent. This shortage remains a critical issue as businesses continue to invest in AI and machine learning technologies.
The report indicates that while many companies are investing in AI, only a fraction are seeing positive returns on these investments. The barriers to successful AI adoption remain consistent over time: data privacy concerns, uncertain ROI and compliance challenges.
The modernisation treadmill
Another enduring challenge is the constant need for IT modernisation. A majority of CEOs express ongoing concern about outdated IT infrastructure. This worry is justified, as a substantial portion of mission-critical IT infrastructure is frequently approaching or at end-of-life.
The skills gap extends beyond AI, with many leaders reporting that technology skills shortages hinder their broader modernisation efforts. This persistent lag in training and skill development creates a continuous mismatch between available technology and the workforce's ability to utilise it effectively.
Paradoxically, while most executives believe their IT infrastructure is best-in-class, only a minority think it's ready to manage future risks. This disconnect between perception and reality remains a constant challenge in the tech industry.
Cybersecurity: An ever-present concern
Cybersecurity consistently tops the list of business concerns. A majority of executives worry about cyber-attacks, yet only a minority feel adequately prepared to manage these risks. This gap between concern and readiness remains a persistent issue in the fast-evolving landscape of cyber threats.
Climate and environmental disruptions also feature prominently among business leaders’ concerns, with many expressing worry about their systems’ ability to effectively respond to such challenges.
The regulatory environment adds another layer of complexity. While opinions on the pace of regulation vary, a majority of executives see regulation as having a positive effect overall, highlighting the ongoing need for businesses to adapt to changing regulatory landscapes.
The modernisation imperative
Despite these challenges, businesses that successfully modernise consistently report benefits such as improved efficiency, greater innovation and enhanced employee or customer experiences. However, there's always room for improvement, particularly in areas like data security, regulatory compliance, and sustainability outcomes.
The potential for automation to reduce IT maintenance costs and prevent downtime remains a significant opportunity. While the current level of automated IT issue resolution varies, there is consistent potential for growth in this area, which could lead to substantial cost savings for companies.
Martin Schroeter, Chairman and CEO of Kyndryl, says: “The work we do at Kyndryl to run and transform complex IT infrastructures for thousands of enterprise customers, has given us a deep perspective on how companies can identify opportunities to overcome today's business challenges. Readiness is an ongoing challenge and it's about empowering people, aligning tools with culture and embracing the complex journey of digital transformation across the entire organisation.”
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