Getting up to speed with AI is fuelling major cloud investment

Companies are starting to get up to speed with AI, report finds

News By Craig Hale published 11 October 2024

Artificial intelligence is becoming an increasingly critical factor in shaping cloud strategies for firms across the UK, new research has claimed, with almost all (98%) UK IT managers saying they will prioritize cloud investment in 2025.

A report by Red Hat found nine in 10 (88%) identified artificial intelligence as a key driver for increased cloud investments, however ongoing battles are likely to lead to a cautious approach.

Four in five (81%) highlighted the AI skills gap as a key concern for the coming year, including data science, large language models and generative AI, with three-quarters concerned about a lack of cybersecurity skills.

Cloud investment driven by AI

UK businesses also see enterprise open source solutions as a major advantage for AI, with more than half (53%) pointing at accelerated innovation as the top benefit, followed by cost efficiency (50%) and transparency (43%).

However as companies across the globe continue to address skills shortages, half of the more than 600 IT managers surveyed confirmed that they would be taking a balanced approach, focusing on new technologies and existing systems in equal measure.

Red Hat found cloud strategy priorities include centralizing cloud management (80%), security, compliance and sovereignty regulatory requirements (78%), preparing for AI adoption (77%) and evolving in line with business objectives (76%).

Despite best efforts to drive cloud investments, businesses are being held back by silos, with an overwhelming majority (96%) agreeing that siloed teams pose challenges when adopting cloud technologies.

Are you a pro? Subscribe to our newsletter

Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed!

Contact me with news and offers from other Future brandsReceive email from us on behalf of our trusted partners or sponsors