How Cloud and AI convergence can be a game-changer for enterprise

Artificial intelligence (AI) and cloud are converging to reshape global business, creating new value across all domains by mutually enhancing each other.

The latest AI technologies work on huge volumes of data – of the order of hundreds of petabytes and in wide-ranging formats, from text and image to audio, video, and gesture – in real-time: machine learning algorithms analyse vast datasets to identify patterns and trends; predictive analytics solutions forecast events enabling enterprises to respond at speed to their environments; AI-powered tools process information gathered from customer interactions to recommend next-best actions, while the conversation is still on. All these applications require massive, scalable-on-demand computing, storage, and data processing capabilities that only the cloud can provide.

AI solutions running on the cloud are transforming operations across the board: manufacturers are automating a host of production activities on the shop floor, from assembly to quality inspection to maintenance; and integration of AI in the supply chain is providing end-to-end real-time visibility to improve inventory management, identify bottlenecks, and monitor ESG compliance, etc. Enterprises are making informed decisions, for example, how to allocate resources to maximise their value. With the insights of cloud AI, and the content creation of generative AI, marketers are finally able to hyper-personalise campaigns for a segment of one, at scale.

Many organisations are leveraging the analytical power of cloud plus AI to perform complex computations at speed to experiment with new ideas, build rapid prototypes, and innovate like never before. The most sophisticated innovations, such as digital twins of entire systems, factories even, and precision medicine based on genetic profiling, are possible because of the AI cloud. 

Cloud and AI: positive reinforcement

If AI needs the cloud to run successfully, the cloud also needs AI to work better. AI automates several cloud operations, such as patching, capacity scaling, and administrative tasks, to improve its performance. Importantly, it also boosts cloud security by automating threat intelligence and detecting unauthorised access, insider threats, malware, etc. AI-powered analytics tools can detect anomalous patterns and even subtle changes in user behaviour that might indicate a cyber-threat. From predictive risk management to intelligent encryption to automated compliance monitoring, AI is at the forefront of all major cloud security actions.

Apart from reinforcing mutual capabilities, AI and cloud together will also make it easier for enterprises to adopt and scale cutting-edge technologies, such as large language models, generative AI and computer vision tools, on-demand.

2025 could also see greater adoption of Industry Clouds, which are vertical cloud platforms offering software, platform and infrastructure-as-a-service capabilities catering to the business, data and regulatory requirements of various sectors. Offering solutions that are much more specialised and customised to different industries, industry cloud platforms are better equipped to address their needs than general cloud offerings. For example, a financial services cloud gathers core banking, wealth management and insurance data to provide deeper insights to financial institutions for planning or customer engagement, whereas a retail industry cloud offers solutions to enable supply chain resilience, seamless shopping experiences, etc. 

With capabilities, such as easy adaptability of processes and applications, composability enabling the delivery of innovations through marketplaces, access to a wide industry ecosystem, and cross-industry collaboration, industry cloud platforms will support enterprises to manage their unique challenges and opportunities better this year.

Looking beyond

The outlook is bright for the future of cloud plus AI. This year, these two technologies will add value to every industry in several ways, including automating operations to improve productivity, efficiency and agility, and providing real-time intelligence to drive decision-making and innovation. As cloud and AI become more pervasive within enterprises, they will not only optimise current operations but also provide a competitive advantage to enrich their future.

Saju Sankarankutty

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Saju Sankarankutty is SVP and Unit Technology Officer, Cloud and Infrastructure Services at Infosys.