Unlocking the power of GenAI is top of mind for organizations around the globe. Applications that tap GenAI are transforming business operations, with 97 percent of organizations considering it a top priority, according to a new report from ESG, sponsored by Hitachi Vantara.
The ESG report, Enterprise Infrastructure for Generative AI: A Foundation for Success, is based on a global survey of enterprise IT leaders, line-of-business leaders, and data-centric practitioners. It outlines a broad view of GenAI initiatives from strategy and decision making, infrastructure and implementation, to operations and management.
The survey reveals that GenAI adoption is widespread, with many organizations already implementing it. Approximately 90 percent of respondents believe GenAI will enhance operational efficiency and productivity, providing a competitive edge to their organization. Despite these benefits, organizations face significant challenges, including cost, data quality, and integration.
Security remains the top concern, cited by 38 percent of respondents. Data privacy, confidentiality, and unauthorized access are critical issues that also need to be addressed. Interestingly, GenAI is also seen as a tool to enhance security measures, such as advanced threat detection and automated responses. This dual role underscores the importance of balancing security concerns with the benefits GenAI offers.
The Shift to Hybrid Cloud
The report provides valuable insights on the optimal infrastructure for GenAI, as respondents note that a balanced infrastructure approach is essential for GenAI success. While 37 percent of organizations feel their current infrastructure is sufficient, this may change as GenAI adoption grows.
Hybrid cloud, combining on-premises and public cloud, is the preferred solution, with 78 percent of respondents using it for GenAI. This trend highlights the need for hybrid cloud data platforms to manage a vast variety of data types including structured and unstructured, and to deliver on performance and security demands.
When selecting GenAI infrastructure providers, organizations prioritize reliability, minimal downtime, and hybrid cloud support. Environmental sustainability is also becoming a significant factor, reflecting growing concerns about AI's energy consumption.
The Lead Players in Decision Making
The Hitachi Vantara report also notes that IT leadership plays a crucial role in GenAI decisions. IT operations and technical executives are the primary stakeholders, holding significant influence over purchase decisions and budgets. This shift in authority from business leaders to IT departments can create challenges in ownership and budget control, potentially hindering GenAI adoption.
Organizations are taking a cost-effective approach to GenAI, with 96 percent preferring alternatives to proprietary large language models initially. However, they plan to use proprietary models long-term to gain a competitive edge.
Image credits: Hitachi Vantara; Hitachi Vantara report, Enterprise Infrastructure for Generative AI: A Foundation for Success