Businesses have been working to better manage their cloud budgets. Generative AI, which runs on the cloud, is making that much harder.
Business technology leaders are expecting their cloud spending to grow in 2024, an increase linked in part to the growth of new generative artificial intelligence services.
“Our cloud usage is up, for example, driven by our use of generative AI in drug discovery,” said Diogo Rau, executive vice president, chief information and digital officer of pharmaceutical company
. “The cloud is important for generative AI because it makes it possible to set up projects quickly and enables large, parallel computations to increase speed.”
Market research and information technology consulting firm
said on Monday that the global cloud market will reach $678.8 billion in 2024, a 20.4% increase from $563.6 billion this year. Cloud infrastructure, or the underlying platform that powers AI, software and applications, is the segment expected to grow the most, at a rate of 26.6% next year, Gartner said.