WEST PALM BEACH, Fla., June 27, 2024 — Vortle Today we released a new industry report. The New Battlefield: Unleashing the Power of AI Maturity with Multi-Model AINew research reveals a clear correlation between an organization's AI maturity and their ability to achieve superior business outcomes in revenue growth, market share, customer satisfaction and operational efficiency compared to industry peers.
The study, commissioned by Vultr and conducted by S&P Global Market Intelligence, surveyed more than 1,000 IT and digital transformation decision makers at U.S.-based companies responsible for their organization's AI strategy across a range of industries, including healthcare and life sciences, government/public sector, retail, manufacturing, and financial services. Nearly three-quarters (72%) of those surveyed stated that their AI use is at a high level of maturity. The report also includes a qualitative perspective on AI use by companies of various sizes across the U.S. through in-depth interviews with AI decision makers and practitioners.
“As organizations around the world leverage their strategic investments in AI, we wanted to explore AI maturity,” said Kevin Cochrane, CMO of Vultr's parent company Constant. “What we found is that transformative organizations are winning hearts, minds, and wallet strings while improving their operating margins. AI maturity is the new competitive weapon, and companies need to invest now to accelerate the scaling of AI models, training, and production.”
The era of multi-model AI
The number of models actively in use within an organization is a reliable indicator of deployed AI capabilities and overall AI maturity. Data shows that companies with advanced AI adoption leverage many models simultaneously as part of a multi-model approach.
The average number of AI models in production today is 158, and that number is projected to grow to 176 within the next year. This growth represents a significant acceleration in AI adoption across industries, as evidenced by the fact that 89% of organizations expect to be highly advanced in their use of AI within two years.
AI proficiency and maturity will be the new battleground for business performance
AI is poised to permeate the enterprise, with 80% adoption expected across all business functions within 24 months, which includes embedding AI in every application and business unit.
As AI gains new footholds across business, it will have a profound impact on overall enterprise performance. According to the report, companies implementing transformative AI practices report outperforming their peers at higher levels. Specifically, 50% of transformed companies are performing “significantly better” than their peers at an operational level, while the majority of AI-led organizations say their 2022/2023 year-over-year performance has improved in customer satisfaction (90%), revenue (91%), cost reduction/margin expansion (88%), risk (87%), marketing (89%) and market share (89%). Meanwhile, nearly half of organizations (40-45%) say AI has had a “significant” impact on market share, revenue, customer satisfaction, improved marketing, and cost and risk reduction.
“The transformative impact of AI is undeniable. AI is taking industries by storm and permeating every aspect of business operations. Therefore, to effectively scale these innovations, we need a new age of technology underpinned by composable stacks and platform engineering,” said Cochrane.
AI spending expected to surpass IT spending
To realize the full potential of AI, 88% of companies surveyed plan to increase their AI spending in 2025, with 49% anticipating a moderate to significant increase. Survey findings on key infrastructure, partners and implementation strategies include:
- For cloud-native applications, two-thirds of organizations are custom-building models or using open-source models to deliver the functionality.
- By 2025, the AI infrastructure stack will be hybrid cloud, with 35% of inference happening on-premise and 38% in the cloud/multi-cloud.
- Due to a skills shortage, 47% of companies are leveraging partners to help with AI strategy, implementation, and scale adoption, with only 15% leveraging hyperscalers like AWS, GCP, or Azure.
- Openness, security, and compliance are the most important attributes of a cloud platform for extending AI across organizations, geographies, and the edge.
“For years, hyperscalers have dominated the infrastructure market by relying on their scale, resources and technical expertise, but that's all changing,” Cochran added. “Over the next decade, everything will be restructured around AI, as organizations integrate cloud engineering principles into their operations. This will result in the rise of AI specialists and independents that will enable organizations to carry out transformative work and gain competitive advantage.”
The challenges of implementing AI in any business
As the race towards AI intensifies, it is not without obstacles. Budget limitations, building or acquiring AI algorithms, lack of skilled talent, and data quality are some of the major hurdles that organizations must overcome to progress to the next stage of AI maturity. For organizations at the transform level of maturity, governance (30%) is a much bigger issue, while for those still in the accelerate stage, company culture is a bigger issue.
For more information or to download the full report, here.
About Constant and Vultr
Constant is, Vortleis on a mission to make high-performance cloud computing easy to use, affordable, and locally accessible for businesses and developers around the world. Vultr provides flexible and scalable global cloud computing, cloud GPU, bare metal, and cloud storage solutions to over 1.5 million customers in 185 countries. Founded by David Aninowsky and completely bootstrapped, Vultr has become the largest privately held cloud computing company in the world without ever raising equity funding.
Source: Vultr
