88% of Companies Warn Insufficient Cloud Spending Threatens AI Initiatives: Study

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88% of Companies Warn Insufficient Cloud Spending Threatens AI Initiatives: Study

Synopsis

A recent report reveals that while AI is driving the demand for cloud investment, only 14% of organizations have achieved top cloud maturity, putting their AI initiatives at risk. Discover the key findings from the global survey and what steps firms must take to align their strategies.

Key Takeaways

14% of organizations have reached top cloud maturity.
99% acknowledge AI increasing the demand for cloud investment.
88% feel current investments jeopardize their AI initiatives.
Cloud leaders are better positioned to leverage AI.
Over half face challenges in cloud cost management.

New Delhi, March 27 (NationPress) The reliance on cloud technology is escalating due to AI advancements, yet the necessary investments are lagging behind. A mere 14 percent of companies have attained the pinnacle of cloud maturity after nearly two decades of cloud integration, according to a recent report.

The study conducted by NTT DATA revealed that while 99 percent of organizations acknowledge that AI is driving the demand for increased cloud investment, 88 percent believe that the current funding levels jeopardize their AI, cloud-native, and modernization projects.

These insights stem from a global survey involving over 2,300 senior executives across 33 countries.

Less than half of the organizations express satisfaction with the effects of cloud technology or their progress in modernization, indicating a gap between aspirations and actual outcomes.

Cloud leaders—entities that have successfully evolved their cloud capabilities and achieved strong business performance—are notably better equipped to harness AI effectively, the report highlights.

“AI is progressing more rapidly than enterprise cloud maturity. The evolution of cloud has transcended mere infrastructure, becoming a critical execution layer for AI. Organizations that do not advance their cloud frameworks risk limiting the potential and return on their AI investments,” stated Charlie Li, President, Global Head of Cloud and Security at NTT DATA, Inc.

To transform cloud technology into a strategic asset, organizations must develop both cloud and AI strategies concurrently, the report advises, noting the increasing demand for AI while highlighting the uneven alignment. Chief AI Officers are 22 percent more likely than Chief Information Officers and Chief Technology Officers to assert that AI intensifies the need for cloud investments.

A platform-oriented strategy is now essential, as over half of the respondents reported challenges with cloud cost management amidst stagnating investments and growing complexity in their environments.

Organizations forecast a threefold rise in fully managed cloud platforms, urging companies to realign their cloud transformation performance indicators.

Approximately 47 percent of cloud leaders incorporated AI in their most recent cloud migration projects, compared to 35 percent of other organizations, the report noted.

aar/pk

Point of View

It's crucial to highlight the growing disconnect between AI advancements and cloud investment levels. This report underscores the urgent need for organizations to realign their strategies to ensure sustainable growth in both AI and cloud technologies, crucial for future competitiveness.
NationPress
13 May 2026

Frequently Asked Questions

What percentage of organizations have achieved top cloud maturity?
Only 14 percent of organizations have reached the highest level of cloud maturity, according to the report.
How many organizations believe AI increases cloud investment needs?
88 percent of organizations feel that current cloud investment levels are inadequate to support their AI initiatives.
What is the significance of cloud leaders in AI adoption?
Cloud leaders, who have evolved their cloud capabilities, are significantly better positioned to maximize the potential of AI.
What challenges do organizations face regarding cloud cost management?
More than half of the respondents cited challenges in managing cloud costs, particularly as investment levels stall.
What is the expected growth in fully managed cloud platforms?
Organizations anticipate a threefold increase in fully managed cloud platforms in the coming years.
Nation Press
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