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Diving overview:
- Data infrastructure issues hinder companies’ AI investments; $108 billion Annual AI spending waste, according to Hitachi Vantara Analysis released Tuesday. Researched by technology provider 1,200 IT decision makers For that report.
- 4 out of 5 companies or more Companies with mature data assets report ROI on their AI investments. less than half About what the company describes as “data laggards.” only 43% A higher percentage of U.S. leaders believe their companies have predictive or automated infrastructure operations.
- Despite data limitations, surveyed IT leaders believe their spending on AI is 76% in the next two years This is as companies launch internal platforms and plan broader deployment efforts.
Dive Insight:
Data and infrastructure have been stubborn components of AI implementation, hindering the training of models for targeted use cases and creating bottlenecks for high-demand services.
Hyperscalers are committed to deploying capital and have ramped up their efforts over the past two years with plans to match available computing power to the surge in demand for AI services. Spending continues to soar this year. Leading cloud providers have plans to: Increase capital investment by nearly 40% To better meet demand, according to a recent report from S&P Global.
In enterprises, data sprawl can hinder widespread AI adoption. This is because data quality is the most commonly cited factor for successful AI implementation. Hitachi Vantara.
“The quickest way to waste an AI budget is to track a model without modifying the data underlying the model,” he said. said Simon Ninan, senior vice president of business strategy at Hitachi Vantara. Emailed to CIO Dive. The company works with customers to align AI spend with business outcomes, focusing on data performance, resiliency, and availability. Ninan Said.
“CIOs can get the most out of their AI spending by modernizing their data infrastructure, setting clear ROI benchmarks, and treating AI as an operational system rather than an experiment.” Ninan Said.
CIOs and CISOs are grappling with information complexity as they seek a strong security posture in their implementation efforts. According to Ponemon Research Institute study Published in August. almost 3 out of 4 leaders Reducing the complexity of information could help scale AI tools, he said.
