
as a key figure As a representative of digital innovation, artificial intelligence brings the future to every forward-looking enterprise. But while AI and generative AI pave the way for opportunities, they also create financial sustainability risks that could threaten the enduring use of these technologies.
Solving this problem requires understanding AI’s reliance on the cloud. Artificial intelligence relies heavily on cloud storage and computing power. Separately, they are nothing, but together, artificial intelligence has speed.
Cloud infrastructure and applications provide the fast, scalable delivery pipeline needed for advanced analytics, hyper-automation and large language models to be effective. But it can also lead to unforeseen and undetected cloud spending. The Wall Street Journal recently published an article on how artificial intelligence is impacting the ability to control costs in the cloud. Hidden infrastructure and application costs add to the already tricky dynamics of the cloud:
GenAI is creating another layer of technical debt for many businesses.
When you consider artificial intelligence’s expensive but indispensable ally and the high demand for new GenAI tools, it’s easy to see why an investment strategy could quickly become financially unsustainable. GenAI is creating another layer of technical debt for many businesses. Under the pressure of constant innovation, we can see the artificial intelligence cloud growing at a record-breaking new rate. As these factors come together in 2024, we may even see the cloud hangover of the past three years develop into a full-scale AI cloud bankruptcy. Hidden costs threaten to bankrupt AI innovation because they limit the ability of CIOs and CFOs to create new budgets and source funding internally as a means to sustain the economic cycle of digital transformation.