Dive Brief:
- Despite interest in generative AI, most CDOs say their companies have not made changes to their company's data infrastructure to support the new technology, according to an AWS study published Monday.
- Data quality, use case fit and a lack of guardrails top the list of key obstacles standing between companies and widespread adoption of generative AI, according to the survey of 334 CDOs, conducted in partnership with the International MIT Chief Data Officer and Information Quality Symposium.
- Generative AI adoption is still far from pervasive, with just 6% of executives reporting their organizations have one or more use cases in production.
Dive Insight:
Generative AI won't make a major dent in next year's IT budgets. However, executives do have plans to bolster their spending on data systems that underpin the technology.
Nearly three-quarters of CIOs say their organizations will increase spending on cloud platforms in 2024, according to Gartner data. A similar proportion will increase spending on data analytics and business intelligence tools used for model training.
Overall IT spending will grow 8% in 2024, Gartner projects, surpassing $5 trillion for the first time in the company's annual forecast.
While Gartner attributed the increase to deferred 2023 project spending and rising vendor costs, the trend also also reflects a desire for modernization.
Nearly half of CDOs say their role focuses on data management initiatives, including the enhancement of data infrastructure for specific analytics and AI use cases.
The major cloud providers — AWS, Google Cloud and Microsoft Azure — have spent the past year pitching products and services that can help with that transformation. So far, adoption trends suggest enterprise leaders are more likely to leverage generative AI within services they already consume.
