According to the Foundry for AI by Rackspace (FAIR) 2024 research report, more than 60 per cent participants have advanced their artificial intelligence (AI) strategies beyond the ideation and proof-of-concept stages and are now transitioning to the initial phases of adoption. Nearly one-third respondents have successfully integrated AI into their business operations, highlighting AI’s exceptionally rapid adoption and evolution.
29 per cent respondents have fully integrated AI strategy for use in employee productivity, with an additional 33 per cent at the early stages of development. Companies are also seeing internal benefits, with 29 per cent saying they have fully integrated AI and 31 per cent at the early stages. The most fully developed use of AI is customer products and services, with 33 per cent having fully integrated AI and an additional 34 per cent in the initial stages of implementation. Nearly half of respondents reported being operationally ready for AI.
Commenting on the report, Srini Koushik, president, AI, technology, and sustainability, Rackspace Technology, said, “Unlike previous technological disruptions that were years in the making, such as the mainframe, client servers, and cloud computing, there has been little to no wait and see period for AI. Instead, companies across the board have jumped in with both feet. As AI becomes increasingly commoditised with easier consumption models, it is establishing itself as a ubiquitous tool that can fit almost anywhere, with a broad-brush impact across all aspects of the organisation.”
Investment in AI continues to rise
The report also reveals a continued surge in AI investment, with companies anticipating doubling their budgets in 2024 as compared to 2023. Moreover, respondents reported that their investments are yielding significant returns, with 86 per cent reporting that their companies have seen tangible benefits from the implementation of AI – a notable increase of 10 per cent over Rackspace’s 2023 survey.
Among the leading use cases for AI/machine learning (ML) initiatives, respondents highlighted efficiency as the primary motivation and advantage, with intelligent search (62 per cent), document processing (61 per cent), and fraud detection (56 per cent) emerging as the leading cases.
When asked about the driving force behind their company’s AI strategy, 57 per cent respondents cited their information technology (IT) departments as taking the lead. However, IT teams are also receiving support from various other departments across their organisations. Specifically, 46 per cent respondents mentioned that customer service played a role as an early adopter in driving their AI strategies, while 44 per cent reported involvement from functional departments such as marketing, sales, and finance. In addition, approximately half of all respondents also mentioned that they are achieving their goals in executive sponsorship of AI initiatives, business unit alignment, strategic alignment, and product management.
Meanwhile, Nirmal Ranganathan, vice president, engineering and chief AI architect, Rackspace Technology, said, “The doubling down on AI investment over the past year is akin to progress at the speed of light. However, it’s not merely the magnitude of investment that is worth noting. The widespread adoption of AI across various parts of businesses indicates that organisations recognise it as a profoundly impactful technology with transformative capabilities.”
Security and ethics remain a concern
Despite the widespread and rapid adoption, organisations remain cautious of AI-associated risks, including ethical and security concerns associated with the technology. Fifty-eight percent respondents ranked cybersecurity as the biggest risk their organisation sees in AI adoption, while just 51 per cent respondents report that they follow proper data management and retention policies to manage compliance.
Alongside security, ethics emerge as a key concern, with over half respondents considering the responsible and ethical use of AI as being a part of their approach for AI governance. The key considerations for what respondents considered to be responsible AI were data privacy (55 per cent), accountability (52 per cent) and transparency (48 per cent).
Srini Koushik added, “Despite concerns regarding data breaches, the strong trust that IT leaders place in AI systems surpasses the standards of governance. This underscores the lingering gaps in the safeguards for Ethical AI, which require urgent attention.”
AI talent and upskilling
The survey also revealed an ongoing shortage of AI skills. Key roles that companies are looking to fill include software development (44 per cent), machine learning (42 per cent), and data analytics, engineering, and governance (40 per cent). In response, 39 per cent companies currently offer formalised AI training/learning programs, with an additional 58 per cent planning to develop such programs in the future.
