While generative AI continues to present new opportunities, other IT trends will reshape industries and business decisions

 

Generative AI had a breakout year in 2023, with all indications that it will usher in even more ways to drive business growth in the coming months.

According to an International Data Corporation forecast, enterprise spending on generative AI solutions could reach $143 billion in 2027, up from $16 billion in 2023, with the world’s largest companies expected to allocate over 40% of their core IT spend to AI-related initiatives.

“Enterprises around the world will continue to investigate the opportunity to weave AI tools and solutions — including generative AI — into their broader modernization plans,” said Nicolas Sekkaki, Global Practice Leader for Applications, Data and AI at Kyndryl. “The consensus is that the potential of generative AI far outweighs the risk. Still, C-suite leaders are mindful of risks, and even as they push to test and innovate, there will be a lot of conversation and consulting work around maintaining privacy, IP protection, stopping data leaks and harnessing costs.”

However, other trends — like smart cloud strategies, using technology for climate progress and bolstering security and resiliency systems — also will define the tech landscape and decision making in the year ahead. 

Below, Kyndryl’s global practice leaders share their perspectives on the top trends and the steps organizations can take to navigate 2024.

Trend #2: Data governance will emerge as the critical factor in AI adoption

Why it matters: Everybody wants a new skyscraper, but any building must stand on a solid foundation. In the case of both enterprise and generative AI, that foundation is data. Enterprises lacking the in-house skills to manage their data will need trusted partners who are experts in data governance, business processes and the appropriate best-in-class applications for their industries. Only then will AI-infused IT estates deliver essential business value. “It’s important to have well-organized data for your AI to run on,” said Sekkaki. “It’s like if you were on a train going full speed — you better have tracks to sustain that speed.”

What you need to do:

✓ Ask the right questions to define your organization’s desired business outcomes.

✓ Have a comprehensive data strategy and governance, and build your data platform.

✓ Invest for the future — AI is here to help.

It’s important to have well-organized data for your AI to run on. It’s like if you were on a train going full speed — you better have tracks to sustain that speed.

Nicolas Sekkaki

Global Practice Leader, Applications, Data and AI

Trend #4: The mainframe will remain relevant as part of a hybrid environment

Why it matters: Predictions that enterprises would move their entire workloads and data to the cloud have turned out to be overstated — it is clear a hybrid approach is the way to go. The mainframe is alive, modern and remains the only platform that can handle the “failure is not an option” demands of the industries the world depends on every day. “It used to be that everyone was going to move off the mainframe to the cloud, and now it is all about how to leverage the platform in the right way, what workload should stay and what should move,” said Petra Goude, Global Practice Leader, Core Enterprise and zCloud at Kyndryl. “But guess what? History is repeating itself. Two reasons everyone didn’t move everything off is because of the high volume of transactions being executed and the cost of moving everything.”  

Indeed, mainframes can manage the vast amounts of data required for AI and IoT. But mainframes only can work wonders when in the hands of experienced operators. That’s why working with the people with the best mainframe skills will remain critical to the success of the enterprises and governments that rely on the superpowers of this timeless platform.

What you need to do:

✓ Join the 95% of businesses that are adopting a hybrid approach to mainframe modernization by determining the right platform for the right workload.

✓ Realize the business value of 9% to 11% increased profitability that can be achieved annually from mainframe modernization.

✓ Trust the mainframe to adapt and grow — reinventing itself to deliver value in nearly every business environment — but secure the expert skills needed to future-proof the platform.

95% of organizations are moving some applications off the mainframe - on average 37% of their workloads
On average, businesses become 9-11% more profitable by modernizing their mainframe
Trend #6: Cyberattacks will increase in number and sophistication

Why it matters: Everybody’s talking about it, but nobody wants to think about it: Bad actors can launch cyberattacks to shut down operations, hijack organizational agendas, and destroy reputations and trust. Cyberattacks have become commonplace across every industry and government function. Systems modernization to optimize security and resilience requires more than patchwork and a new coat of paint. “During the pandemic, the majority of organizations globally pivoted from modernizing already aging infrastructure and introduced new digital capabilities to enable new ways of working for existential reasons — often abbreviating or skipping security control,” said Kris Lovejoy, Global Practice Leader of Security & Resiliency at Kyndryl. “The result is a mix of very old and very new but insecure infrastructure. What must happen now will be difficult. It’s going to require spending. But businesses will need to assess and deal with the complexity and age of their environment to become more resilient.”  

What you need to do:

✓ Understand that IT systems with advanced security and resiliency require strong and modern foundations since bad actors (who may use malicious AI) can — and will — exploit any weakness.

✓ Lower the barriers and expand access to cybersecurity training and hiring. People — and their diverse perspectives — are the best weapons against cyberattacks.

AI is going to transform operations, and it’s going to change general management decision-making and how to optimize cost structure.

Paul Savill

Global Practice Leader, Network & Edge

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