Infosys Unveils Insights on Cloud Strategy and AI Readiness

On July 31, 2024, Infosys Ltd informed the stock exchanges that the company, in partnership with MIT Technology Review Insights, released a new report titled “Reimagining Cloud Strategy for AI-First Enterprises.” The report, based on a survey of 500 global industry leaders with revenues exceeding $500 million, assesses their cloud and data readiness as they prepare for large-scale AI initiatives.

The survey revealed that many companies are still in the experimental phase and preparing their cloud infrastructure for AI. A significant portion plans to make further investments to expedite this process. As cloud technology evolves from its initial role as a storage tool and cost reducer, achieving the full potential of AI and becoming a true “AI-first enterprise” demands substantial, ongoing investments in cloud strategy and infrastructure.

Key findings from the report include:

• Approximately 67% of respondents have “developed” or “advanced” cloud infrastructure, while 33% have “growing” or “nascent” cloud systems.
• Fewer than 10% of executives have fully integrated AI into their operations. Although nearly 48% are experimenting with AI, only 8% report comprehensive AI integration into their business processes.
• Companies employ diverse strategies to optimize cloud systems for AI. Half of the executives use cloud services primarily for integrating data for AI, 30% utilize cloud infrastructure for computing capacity, and only 13% have a “detailed roadmap” for how cloud investments will advance AI adoption beyond data and computing power.
• Challenges such as complexity, security, safety, and data management remain obstacles to achieving cloud-ready AI systems. Among those surveyed, 45% cited “concerns about data security, ethical data use, privacy, and overall safety” as factors limiting their cloud readiness for AI.
• Looking ahead, cloud spending is projected to rise. A significant 71% of executives anticipate increasing their cloud infrastructure investment for AI by at least 25% over the next two years, with more than 27% predicting an increase of 50-100%.

Commenting on the report, the Chief Technology Officer of Infosys, Mohammed Rafee Tarafdar, said, “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. 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. 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,” said Laurel Ruma, Global Editorial Director, MIT Technology Review Insights.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.