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Organisations Unprepared for Massive Energy Requirements and Data Demands of AI; AI Set to Drive Disruption in 2024

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Pure Storage in partnership with Wakefield Research, released a new report identifying the hurdles organisations across industries face in the adoption of artificial intelligence (AI), and unveiling the often overlooked energy requirements of this advanced technology.

The new report, “Drivers of Change: Meeting the Energy and Data Challenges of AI Adoption,” reveals the importance of reassessing data infrastructure to truly reap the benefits of AI, keep energy costs in line, and stay on track with corporate environmental goals.

Survey highlights:

The survey, fielded among 500 IT buyers at companies of 500+ employers across the U.S. and Europe, found that:

– The need for computing power is surging, driven by AI adoption: For 88% of those who have adopted AI, the need for computing power is up dramatically. Nearly half (47%) have had to double their computing power or more since adopting AI.

– Organisations did not anticipate the energy demands of AI: 73% of IT buyers were not completely prepared for the energy requirements of AI.

– Energy consumption is just one AI burden: For 73%, AI requires or will require data management upgrades of some kind. Among specific upgrades: data management tools (48%), data management processes (46%), and data storage infrastructure (46%).

– As a result, nearly all (96%) have already or plan to update their IT infrastructure: 29% of IT Buyers say AI has or will require a complete overhaul.

– These challenges have set back businesses’ sustainability goals: 89% have found ESG goals more difficult to meet as a result of upgrades to their IT infrastructure after AI adoption. However, 60% of those who have already adopted AI technologies (or plan to in the next 12 months) stated they invested in or will invest in more energy-efficient hardware to meet ESG goals.

AI adoption is on the rise across industries, yet most organisations lack the necessary infrastructure to handle the high-performance data demands and energy requirements essential for maximising its benefits. This limitation poses a challenge to the successful implementation of AI to support critical corporate initiatives, including those aimed at achieving environmental goals. Nearly all IT buyers feel pressure to reduce their carbon footprint. In fact, most agree that meeting IT goals is impossible without properly preparing IT infrastructure to support AI.

The demand for smarter infrastructure has never been more pressing. Legacy systems often cannot support the massive AI data pipelines required to get the most from machine learning. As AI continues to accelerate in adoption, IT teams require an efficient, reliable, and high-performance infrastructure to ensure effective deployment.

“This timely report provides useful insights for organisations in the country who are planning or already deploying AI projects. In the age of AI, power and data demands will grow exponentially and investing in the right AI-ready data infrastructure is critical to give your project the best chance of success,” said Ramanujam Komanduri, Country Manager, India, Pure Storage.

Pure Storage’s predictions for 2024

– AI will cause a shakeup in cloud computing

We expect a cloud computing shakeup with specialised providers focusing on AI services like GPU Cloud, disrupting the IaaS hyperscaler status quo. These new hyperscalers will grow fast, fuelled by GPU chip manufacturers directing demand to cloud providers. Anticipate M&A activities as incumbent IaaS hyperscalers aim to acquire AI Cloud capabilities in this evolving landscape.

– 2024 will see the rise of the sovereign cloud

There is increasing desire for sovereign cloud based on tightening of regulations pertaining to the use and location of data, especially within industries such as financial services. Additionally, AI systems like GenAI, raise issues of sovereignty during the training process.

– In 2024, IT departments will be asked to play a bigger role in company-wide environmental sustainability goals

As environmental sustainability efforts intensify, IT departments will be increasingly asked to play a bigger role in meeting corporate sustainability goals. While previously they were asked to get their own house in order with regards to energy efficiency, there is a growing recognition that IT can and must play a role in improving energy efficiency throughout the company.

– 2024 will see another talent crunch, this time focused on AI

Whenever new technologies emerge, we see demands for talent and skills in those areas shoot up and it is no different with Generative AI. The war for talent will cause salaries to rise and we will also see many AI projects stall because of the talent crunch.

– In 2024, diverse incentive structures, partner autonomy, and skills development will become the core focus of partner programmes

Resellers are shifting to consultative sales, providing expert guidance for evolving customer needs. Organisations will invest in incentive programs, offering rebates and channel contests, to enhance partner engagement and drive revenue. Partner programs will prioritise comprehensive resources, including demo units, virtual labs, and tailored Proof of Concept (POC) support, empowering partners for success. Vendors will heavily invest in self-service tools, streamlining quote generation to meet the growing demand for agility and efficiency in value chains.

– Ecosystem approach to shape organisations’ channel strategy

Organisations will work towards building strategic ecosystems of technology alliances, establishing interconnected relationships that extend beyond individual partnerships. This ecosystem-oriented approach will result in a broader market reach, enhanced solution offerings (especially in emerging fields such as AI), and a more robust channel strategy, driving the promotion and sales of integrated solutions.

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