Until the lynching of digital innovation, artificial intelligence holds the future for every future business. But while artificial intelligence and genetic artificial intelligence pave the way for opportunity, they pose economic viability risks that can threaten the continued use of these technologies.
Unpacking this issue requires understanding AI’s addiction to the cloud. AI relies heavily on cloud storage and computing power. Separately, they are nothing, but together, AI has speed.
Cloud infrastructure and applications provide advanced analytics, hyper-automation and large language models the fast, scalable delivery channels need to be effective. But this also incurs costs in the cloud that can be unpredictable and unnoticed. The Wall Street Journal recently published an article on how artificial intelligence affects the ability to control cloud costs;. Hidden infrastructure and application costs add expense to an already difficult cloud dynamic:
GenAI is driving another level of technical debt for many businesses.
When you consider AI’s expensive but necessary ally with the high demands for new GenAI tools, it’s easy to see why investment strategies can quickly become financially unsustainable. GenAI is driving another level of technical debt for many businesses. Under the pressures of continuous innovation, we could see cloud AI develop at new record speeds. As these factors come together in 2024, we may even see the cloud hangover of the past three years evolve into full-blown AI-cloud bankruptcies. Hidden costs have the potential to cripple AI innovation because they limit the ability of CIOs and CFOs to create new budgets, finding funding from within as a means of sustaining the financial cycles of digital transformation.
