Data and AI

Public-private partnerships in AI: Why now is the critical moment?

Article 28-Jan-2025 Read time: 1 min

By Michael Bradshaw, Global Practice Leader for Applications, Data and AI at Kyndryl, and Fariba Wells, SVP of Global Government Affairs and Policy at Kyndryl

Governments worldwide are prioritizing AI.

The U.S. government last week announced a significant investment and project aimed at creating jobs and boosting America’s position in the global AI race. The Stargate Project is a new four-year, $500 billion AI infrastructure initiative supported by major companies like SoftBank, OpenAI, Oracle and MGX, with tech help from Arm, Microsoft and NVIDIA. The project is expected to generate roughly 100,000 jobs in data center construction, followed by additional roles in innovation and technology development as new facilities are developed across the U.S.

The U.S. joined Japan, the UAE, Saudi Arabia and the UK, which have already begun or announced similar AI initiatives, and more governments are sure to follow. In February, Kyndryl will join global business, government and tech leaders in France to discuss the future of AI at the Artificial Intelligence Action Summit. As some of the world’s major economic players lay the groundwork for the next era of AI growth, the message is clear: We are at an inflection point that will determine the future direction of this revolutionary technology.

Are companies ready?

AI is already revolutionizing how governments and global economies do business and serve citizens, but much of AI’s potential remains untapped. According to the 2024 Kyndryl Readiness Report, while businesses are investing in traditional and generative AI, only 42% of business leaders are seeing positive ROI on those investments. And while 86% of business leaders say their AI implementation is best-in-class, more than 70% do not believe their IT is “completely ready” for AI implementation.

The construction of new AI data centers will provide the physical infrastructure to help close some of that gap. However, designing, managing and securing AI operations will pose significant challenges and require specialized expertise to help deliver the benefits of partnerships between business and government. Whether it’s strengthening data security and privacy against increasingly sophisticated threats, enhancing the speed and accuracy of public services, or driving overall economic growth, AI has the potential to improve operations across business and government.

The new AI economy

Projects like Stargate are about more than just technological advancement; they’re about transforming the global economy. Each has the potential to create thousands of jobs and drive growth in a new economic sector. That’s why it’s more important than ever for businesses to invest in AI skills training for their workforces and adapt their strategies to succeed in AI-driven markets.

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As we stand on the brink of a new era, where AI’s potential can transform our lives in unimaginable ways, it’s time to embrace this future and take the first step together.

Michael Bradshaw

Global Practice Leader for Applications, Data and AI

The promise of AI

AI is dramatically improving manufacturing throughput by optimizing processes and enabling proactive maintenance. AI can improve commercial and government services by delivering answers to questions quickly and accurately, leaving the more complex and nuanced aspects of service to human operators. What’s more, AI can help healthcare professionals reach more accurate medical diagnoses and reduce treatment errors. It can also help manage the increasing complexity of shipping, travel and logistics.

Beyond driving operational efficiencies, AI could help humanity manage — and survive — natural disasters such as wildfires or coastal flooding with faster and more accurate weather forecasts, as well as coordinate emergency services. Finally, AI has the potential to reduce its own carbon footprint as its insights assist humans in the design of more energy-efficient data centers.

It won’t just happen

These promising developments remind us that every result is backed by expertise and hard work. Electricity doesn’t originate at the wall socket, and food doesn’t magically appear at the grocery store. Likewise, the future of AI won’t just happen. We must design it ethically, build it securely and manage it wisely. That’s where decades of experience with automation and machine learning come to bear. It’s where the aggregation and analysis of global business operational data from an AI-enabled services delivery platform becomes critical to the success of future innovations. It is where deep partnerships with the world’s leading hyperscalers and solutions providers help deliver targeted, efficient and cost-effective business results and government services.

While AI offers immense potential, we must build it on a foundation of ethics and trust. We must find the right balance between innovation and regulation in an environment that often is uncertain. So, as we stand on the brink of a new era, where AI’s potential can transform our lives in unimaginable ways, it’s time to embrace this future and take the first step together.