98% of executives expect to see a significant rise in spending on AI for cloud

The survey found that most companies are still experimenting and preparing their infrastructure landscape for AI from a cloud perspective—and many are planning additional investments to accelerate their infrastructure progress.

As the cloud has evolved beyond its initial purpose as a storage tool and cost saver, realizing AI's full potential and becoming a truly "AI-first enterprise" will require a significant, sustained investment in cloud infrastructure and strategy. The report’s key findings include:

Around two-thirds (67%) of respondents have a "developed" or "advanced" cloud infrastructure. Only one-third (33%) classify their cloud infrastructure as "growing" or "nascent."

Less than 10% of executives have fully integrated AI into their operations. While nearly half (48%) of executives say their firms are experimenting with AI, only 8% say they've comprehensively integrated AI into their business.

Companies have varied strategies for optimizing their cloud systems to support AI initiatives. Half of the executives report they're using cloud services only to integrate data for AI purposes. Another 30% are using cloud infrastructure for computing capacity, and just 13% report having a "detailed roadmap" on how cloud investments will advance AI adoption beyond data and computer power/scale.

Complexity, security, safety, and data challenges are all hurdles to cloud-ready AI systems. When asked about the factors limiting their organization's cloud readiness for AI, 45% of respondents cite "concerns about data security and ethical use of data, privacy, and overall safety."

Spending on cloud systems is expected to climb. A significant percentage (71%) of executives expect spending on cloud infrastructure for AI will increase by at least 25% in the next two years. More than one-quarter (27%) predict it will increase by 50-100%.

“Today, we are in the early stages of reimagining enterprise with AI and as we move towards a human plus AI collaborative state, cloud & data will be the catalyst in scaling AI,” said Mohammed Rafee Tarafdar, Chief Technology Officer, Infosys. “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.”

“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.”

“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,” said Anant Adya, Executive Vice President and Service Offering Head, Infosys. “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 organizations moving forward.”