As the backbone With digital innovation, AI holds the future for every forward-looking company. But while AI and generative AI are paving the way toward opportunity, they come with financial sustainability risks that could threaten the continued use of these technologies.
Solving this problem requires understanding AI’s addiction to the cloud. AI relies heavily on cloud storage and computing capabilities. Separately, it’s nothing, but together, the AI is fast.
Cloud infrastructure and applications for advanced analytics, superior automation, and large language models provide the fast, scalable delivery channels you need to be effective. But this also leads to cloud expenses that can be unexpected and undetected. The Wall Street Journal recently published an article about How AI impacts the ability to control cloud costs. Hidden infrastructure and application costs pile up expenses in an already challenging cloud dynamic:
GenAI is driving another layer of technical debt for many companies.
When you consider AI’s expensive and indispensable ally with the huge demand for new GenAI tools, it’s easy to see why investment strategies can quickly become financially unsustainable. GenAI is driving another layer of technical debt for many companies. Under constant innovation pressures, we could see the AI cloud growing at new record speeds. As these factors come together in 2024, we may see the cloud tailings of the past three years develop into complete AI cloud bankruptcies. Hidden costs have the potential to bankrupt AI innovations because they limit the ability of IT managers and CFOs to create new budgets and find funding from within as a way to sustain the economic cycles of digital transformation.