Enterprises struggle to harness value from IT investments

Many companies are not getting the benefits they hoped for from their huge investments in technology like AI and cloud services. Despite spending a projected $5.26 trillion on IT by 2024, around 70% of digital transformation projects fail, according to research. Recent partnerships, such as SAP's collaboration with Databricks, show that having organized and unified data is essential for successful AI use. However, most companies have not fixed their issues with fragmented data. Although more than 90% of businesses have adopted cloud solutions, they mainly use them for storage, not as platforms for AI. This has led to rising costs and inefficient operations across different cloud services. To transform successfully, companies need to rethink their cloud and IT strategies. This includes adopting new technologies like serverless AI computing and focusing on real-time data processing. Studies show that many AI projects fail because of poor data quality and system fragmentation. Businesses must also change how they work with technology. Instead of using different systems that don’t connect, they should create a unified approach to data and AI. Partnering with tech companies for new software solutions can help with this process. Moving forward, enterprises should focus on improving their data systems and ensuring their technology strategies are tailored for AI. They need to shift to AI-driven operations, rather than just using AI to aid existing processes. By reorganizing their business models and emphasizing clean data, optimized cloud solutions, and a focus on automation, organizations can better harness the true potential of AI. In summary, companies need to adopt an AI-first mindset if they want to see real results from their investments in technology. The focus should shift from isolated projects to integrating AI into all aspects of their operations.