Cloud Strategy Crucial For 85% Of Executives Planning To Boost GenAI Investments, Finds Report

A recent report has highlighted a significant trend among executives: a growing interest in boosting investments in Generative AI (GenAI), with a resounding 85 per cent of respondents affirming that the right cloud strategy is essential for realising GenAI's potential.

The HCLTech report underscored the increasingly intertwined relationship between cloud technology and GenAI. Among the survey's findings, 58 per cent of respondents noted that their businesses have already increased investments in GenAI or are actively planning to do so. This represents a clear recognition of GenAI's potential to transform various aspects of business operations.

Crucially, an overwhelming 85 per cent of those surveyed firmly believe that GenAI's successful implementation is contingent on the formulation and execution of the right cloud strategy. This synergy between GenAI and cloud technology is seen as pivotal in driving innovation and enhancing operational efficiency.

In a statement, Kalyan Kumar, Global Chief Technology Officer & Head – Ecosystems at HCLTech, said, “The combination of GenAI and the right cloud strategy is a powerful catalyst for innovation at scale. It's no surprise that businesses are increasingly recognising this synergy and are willing to invest in these technologies.”

These findings emphasise that as businesses explore the potential of GenAI to create dynamic and adaptive solutions, they are simultaneously recognising the indispensable role of cloud infrastructure in harnessing its capabilities.

For example, Meta's open-source AI language model, Llama 2, introduced in July, is made accessible through Microsoft's Azure cloud services. This highlights the strong interconnection between generative AI and cloud technology.

According to a June report from Tata Consultancy Services (TCS), 70 per cent of major corporations continue to prioritise long-term investments in cloud technology. This commitment persists even in the face of current macroeconomic challenges and the recent deceleration in the growth of global cloud providers.

Last week, Nvidia Founder and CEO Jensen Huang unveiled a strategic partnership between Nvidia and Tata Communications aimed at building an AI cloud infrastructure in India with a primary focus on advancing Generative AI technology. By leveraging Tata Communications' global network, the partnership will look to enable high-speed data transfers, democratising AI cloud capabilities for all enterprises. Tata Consultancy Services (TCS) is expected to harness this infrastructure to develop and process Generative AI applications, which would be a substantial milestone in integrating Generative AI into practical applications.

“The global generative AI race is in full steam,” said Huang. “Data centres worldwide are shifting to GPU computing to build energy-efficient infrastructure to support the exponential demand for generative AI.”