The AI Revolution: Transforming Business in the Digital Age

42% of businesses now consider AI their most critical IT project
New CIF research reveals AI's pivotal role in business strategy, with 42% of organisations now considering it their most important IT project

In recent years, AI has emerged as a transformative force across industries, reshaping how businesses operate and innovate. From enhancing customer experiences to optimising supply chains, AI’s applications are vast and growing. The rapid advancement of machine learning algorithms, coupled with the exponential growth in computing power and data availability, has catapulted AI from a niche technology to a mainstream business tool. Organisations are increasingly recognising AI’s potential to drive efficiency, unlock new insights, and create innovative products and services.

Now, research conducted by the Cloud Industry Forum (CIF) has shed light on the current state of AI adoption and its perceived importance among businesses. The findings reveal a significant surge in AI’s prominence within corporate IT strategies, marking a turning point in how organisations view and prioritise AI initiatives.

According to the CIF report, a staggering 42% of businesses now consider AI their most critical IT project, surpassing traditional priorities such as security and cost control. This shift in focus underscores the growing recognition of AI’s potential to drive business value and transformation. Moreover, the research indicates that 96% of organisations believe AI will be at least somewhat important to their operations within the next five years, a notable increase from 86% in the previous year.

“As with any new technology, AI was met with some scepticism during its rise to prominence. The data from this year's report indicates that much of the remaining scepticism has entirely been quashed,” notes David Terrar, CEO of the Cloud Industry Forum. “Businesses are now further informed and fully on board with AI’s ability to reduce costs, save time and enhance their offerings.”

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Now, research conducted by the Cloud Industry Forum (CIF) has shed light on the current state of AI adoption and its perceived importance among businesses. The findings reveal a significant surge in AI’s prominence within corporate IT strategies, marking a turning point in how organisations view and prioritise AI initiatives.

According to the CIF report, a staggering 42% of businesses now consider AI their most critical IT project, surpassing traditional priorities such as security and cost control. This shift in focus underscores the growing recognition of AI’s potential to drive business value and transformation. Moreover, the research indicates that 96% of organisations believe AI will be at least somewhat important to their operations within the next five years, a notable increase from 86% in the previous year.

“As with any new technology, AI was met with some scepticism during its rise to prominence. The data from this year's report indicates that much of the remaining scepticism has entirely been quashed,” notes David Terrar, CEO of the Cloud Industry Forum. “Businesses are now further informed and fully on board with AI’s ability to reduce costs, save time and enhance their offerings.”

Key facts
  • 42% of businesses consider AI their most important IT project
  • 94% of organisations are planning to use or already using generative AI
  • 62% report generative AI is already in use across at least some parts of their organisation
  • 96% say generative AI has or will benefit their organisation

Organisations laying the groundwork for AI implementation

The past year has been crucial for organisations to lay the groundwork for successful AI implementation. Terrar highlights the importance of this preparatory phase: “It has long been clear that getting the best out of AI requires time, effort and resources. Collecting the right data and ensuring that enough of it is available to train models, for example, can be a long and laborious task.”

Generative AI, in particular, has captured significant attention and adoption. The CIF research reveals that 94% of organisations are either planning to use or already using generative AI, with 62% reporting its implementation in at least some parts of their operations. The benefits driving this adoption are clear: 96% of respondents believe generative AI has already benefited or will benefit their organisation, particularly in areas such as data analytics, customer service, and product/service improvement.

Businesses are now further informed and fully on board with AI’s ability to reduce costs, save time and enhance their offerings

David Terrar, CEO, Cloud Industry Forum

Terrar emphasises the broader potential of generative AI beyond chatbots and AI assistants: “For businesses, generative AI has much more potential in its ability to power intelligent analytics and supplement the role of humans in the workplace,” he explains. This technology is particularly promising for cloud service providers, offering opportunities to personalise services, enhance customer understanding of cloud capabilities and develop innovative solutions to complex challenges.

“For cloud service providers in particular, generative AI can and will be an important tool for improving their offerings in several ways,” Terrar says. “Not only will it assist in personalising offerings for users, but it will also help potential customers to better understand what cloud can do for them. For vendors, generative AI will be vital in offering innovative solutions to challenges that have historically been complex, which will help optimise workloads and unlock new opportunities for growth.”

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