Ascending to New Heights with Cloud and AI

PwC’s Scott Petry offers insights on how harnessing the power of cloud and AI can drive growth and innovation. This article originally appeared on Solutions Review’s Insight Jam, an enterprise IT community enabling the human conversation on AI.

The Evolution of Cloud Engineering

Cloud engineering has experienced rapid progression in recent years, fueled by the integration of artificial intelligence (AI), the emergence of industry-specific clouds, and other technology trends that are shaping how engineers solve challenges using cloud technologies. These developments have not only revolutionized the way businesses operate but have also unlocked potential for cost reduction and highly customized solutions for specific markets and industries.

AI integration within cloud solutions helps empower businesses to make data-driven decisions and drive operational efficiencies through advanced analytics, predictive modeling, and automation. By harnessing the power of AI in the cloud, organizations can gain the ability to extract valuable insights from their data, enabling them to better understand customer behavior, enhance operations, and identify new opportunities.

According to a recent survey, 72 percent of high -performing companies achieved “all-in cloud adoption” when it came to modernizing data, compared to just 33% of other companies. By moving their data to the cloud and making it more easily ingestible by large language models (LLMs), high performing companies are more readily able to unlock new value from their data as they integrate new AI capabilities.

Additionally, AI-powered cloud engineering establishes compliance and operational effectiveness through highly tailored solutions for industry-specific challenges, helping confirm compliance and operational effectiveness.

AI’s Impact on Cloud-Native Applications

The evolution of cloud-native application development and platform engineering has also been greatly influenced by advancements in cloud services and AI capabilities. Cloud-native applications and platforms are specifically engineered to be more scalable and flexible, and with the integration of AI, more effective, enabling many organizations to deliver more personalized user experiences. From chatbots to virtual assistants to multi-sided network platforms, AI-powered cloud-native applications are reshaping customer and producer interactions, enabling hyper-personalization, and helping to drive business growth.

Moreover, cloud-native applications inherently support continuous feedback mechanisms between consumers and stakeholders. This ongoing input and feedback at every stage of the development and operational processes ensures that the focus remains on essential features, functions, and capabilities that require enhancement or adjustment. Continuous feedback not only promotes greater transparency but also nurtures a meticulous software development and evolution model.

The Rise of Industry-Specific Clouds

As many organizations increasingly recognize the necessity for tailored solutions to address unique challenges and compliance requirements, industry-specific clouds are gaining traction. For instance, the manufacturing sector is tapping into the benefits of these specialized clouds that address complex supply chain issues and facilitate predictive maintenance. According to a recent report, operations executives and supply chain officers have heavily invested in multiple technologies to digitize operations, with 62 percent investing in cloud solutions and 55 percent incorporating AI, including machine learning.

In the finance industry, a dedicated cloud for banking should encompass both traditional components and emerging technologies such as AI to enhance customer experience. Artificial intelligence has long been utilized in finance for functions like fraud protection and anti-money laundering. However, expanding AI capabilities in other areas such as customer service with chat bots and virtual assistants, can help elevate the customer experience, further showcasing the overall potential of AI in the industry.

Another compelling example is in the healthcare sector. AI is already employed to detect medical conditions and analyze data from imaging instruments such as MRIs and CT scans.  However, to capitalize on these advancements, the healthcare industry requires a specialized cloud with integrative solutions, creating a true holistic healthcare cloud infrastructure.

Overall, AI and cloud engineering are strengthening the case for industry-specific cloud solutions. These customized cloud solutions are designed to help meet the unique needs of different sectors, while facilitating digital transformation and enhancing the return on cloud investments.

Enhancing Cloud Spending

Cloud spending budgets may see an increase with companies seeing the benefits of integrating AI in their cloud strategies. According to a recent survey, 63 percent of high  performers are increasing cloud budgets to leverage GenAI and 92 percent of high  performing companies expect to increase cloud budgets in their next planning cycle.

As many organizations increasingly embrace a variety of cloud solutions, managing and enhancing cloud spending should also be top of mind as it is considered an integral aspect of cloud management. To help increase the value of cloud investments, businesses should consider implementing a few practices that can put them in position to possibly see a return on their cloud investment. This includes regularly monitoring and enhancing cloud usage, leveraging cost improvement tools and services, and implementing governance frameworks to enable accountability and control.

Data and Governance

Data and governance are both important factors when leveraging the power of cloud engineering and AI. It is essential to confirm data security, compliance with regulations, and ethical use of AI. By implementing strong governance frameworks, organizations can maintain control and accountability while harnessing the power of AI and cloud computing.

Focusing on these important areas not only helps mitigate risks but also enhances business value and reputation. Proactively addressing data and governance issues helps prevent technical debt, enables organizations to operate efficiently and sustainably. Strong governance confirms that   organizations are well-prepared to manage regulatory and security requirements, fostering a secure environment that embraces emerging technologies.

Staying Up to Speed with Cloud and AI

The rapid growth of cloud engineering, fueled by AI integration, cloud-native applications, and industry-specific clouds, has transformed business operations. To take advantage of the benefits of cloud and AI, organizations should keep in mind that speed and continuous improvement can be essential.  Fostering a cycle of continuous improvement enables organizations to quickly adapt to market changes and evolving customer needs.

All in all, cloud and AI are becoming fundamental to sustainable growth and long-term success across industries. By harnessing the power of cloud engineering and AI integration, organizations can unlock new possibilities, drive innovation, while maintaining a competitive edge in their respective industry.