Spending on business AI will continue to rise, but are companies ready for the new technology?
The prevalence of artificial intelligence has become a driving factor behind companies’ IT modernization strategies, but continued spending on the technology may be sidestepping some potential problems, new research shows.
A Couchbase study of 500 senior IT decision makers shows that investment in IT modernization is expected to increase by 27% by 2024, with technologies such as generative AI playing a crucial role.
However, the outlook is not entirely positive, with many companies expressing concerns about their willingness to adopt the breakthrough technology.
Are companies investing in AI too early?
The report shows that three in five (59%) are concerned about their ability to manage data according to the demands of generative AI. However, currently less than one in five (18%) say they have a comprehensive data strategy tailored for this purpose.
A similar number (60%) said they were concerned about the computing power and capacity of their organization’s data center infrastructure.
Matt McDonough, SVP Product and Partners at Couchbase, highlighted the critical role of data architecture in the broader rollout of AI tools:
“Enterprises need to be sure their data architecture can meet the demands of GenAI, as without quick access to accurate, tightly managed data it can easily lead individuals and organizations down the wrong path.”
The companies surveyed by Couchbase expected to spend an average of $35.5 million on IT modernization by 2024, with a third of the budget going to artificial intelligence. The average figure for Generative AI specifically was $6.7 million, which represents approximately 19% of their total budget.
McDonough summarized: “Investing in the right data management and infrastructure architecture will help unlock the transformative potential of GenAI.”
As companies face increasing pressure to explore new and emerging AI technologies, Couchbase’s research serves as a stark wake-up call, highlighting the importance of a solid data foundation.