American technological research and consulting firm Gartner predicts that cloud computing will “be a required component for competitiveness by 2028.” A recent report shows that 60% of business data was already stored in the cloud by Q2 2024 and that many companies used cloud computing either as a technology disruptor or capability enabler. The generative Artificial Intelligence (AI) boom introduces new dynamics into this space, fundamentally transforming how businesses operate in the cloud, manage their workforce, and protect their intellectual property.
In fact, AI-driven innovations are expected to push cloud adoption even further, as businesses strive to stay ahead in an increasingly competitive market. The shift is anticipated to drive a significant increase in cloud spending, underscoring the growing importance of AI-cloud integration.
AI’s Impact on Cloud Computing
The symbiotic relationship between AI and cloud computing is the foundation of modern-day automation. From data analysis and data management to security to decision-making, AI and cloud technologies impact each other in multiple ways.
For example, a Deloitte study concluded that investment in the cloud drives faster adoption and higher spending on AI, resulting in full-scale deployments of AI. Meanwhile, 70% of companies get their AI capabilities through cloud-based software while 65% create AI applications using cloud services.
AI technology plays a significant role in optimizing cloud operations. Through advanced machine learning (ML) algorithms, AI can predict workloads, allocate resources more efficiently, and even automate routine maintenance tasks. This not only reduces costs but also enhances the reliability of cloud services. The former can be a significant problem for many businesses migrating to the cloud for the first time.
“We find clients are sometimes wasting upwards of $600K a month on cloud spend by leaving the switch on ‘max’ all the time,” explains Matt Biringer, CEO of North, a leading cloud optimization and FinOps provider. Biringer says the current process to optimize that is just too manual, so that’s where AI comes in.
“On average, companies waste 30% or more on cloud spend because of financial mismanagement,” Biringer explains. North offers an AWS compute optimization solution fully powered by AWS Savings Plans, allowing users to save up to 50% on AWS compute costs with no instance limitations.
Employee Retention in the Age of AI and Cloud
According to CNN, 61% of large US firms plan to use AI within the next year to automate tasks previously done by employees. A Harvard Business School study concludes that “millions of workers may need to be not just upskilled but reskilled—a profoundly complex societal challenge that will sometimes require workers to both acquire new skills and change occupations entirely.”
Taylor Blake, Senior Vice President of New Initiatives at Degreed, the leading Fortune 500 employee learning platform, asserts that upskilling is a key strategy in reducing employee turnover. “Employees who are deliberate about improving, finding new ways of doing things, evaluating their effectiveness, and learning new methods and techniques can greatly accelerate their career development to set themselves apart regardless of the number of years of ‘experience’ they may have at their current company,” he says.
Interested in checking out how “skilled” you are? Check out Degreed’s latest experiment – the conversational AI Skill Review, which can provide a detailed evaluation of your current skills portfolio.
Protecting Intellectual Property in the AI Age
With the increasing use of AI in content creation and digital marketing, companies may risk inadvertently infringing on copyrighted material. AI-driven tools that generate text, images, or code can sometimes replicate existing works too closely, leading to potential legal disputes and damage to brand reputation.
Ensuring that AI-generated content remains free of proprietary information is crucial, making advanced AI detection tools like Copyleaks indispensable for safeguarding intellectual property and maintaining compliance with stringent legal standards.
