AI-Enabling Cloud Services are the Future of Cloud

The adoption of AI within cloud services is poised to revolutionize IT operations, embedding AI as a fundamental element across everything from infrastructure management to application deployment. Significant investment from vendors is speeding up the commoditization of standard cloud services, redirecting attention toward unique, AI-driven solutions.

Gartner predicts that by 2030, over 80% of enterprises will deploy industry-specific AI agents in support of critical business objectives, up from less than 10% today, and more than 60% will conduct intensive AI model activity across multiple clouds. 

We spoke with Dennis Smith, Distinguished VP Analyst at Gartner, about how the intersection of cloud computing and AI is potentially the most impactful event to enter the IT industry in decades. 

Journalists who would like to speak with Dennis regarding this topic can contact matt.lodolce@gartner.com. Members of the media can reference this material in articles with proper attribution to Gartner.

A: The integration of AI into cloud services is set to transform IT operations by making AI a core component of computing. 

Heavy vendor investment is accelerating the commoditization of basic cloud services, shifting the focus to differentiated, AI-enhanced offerings. 

With this in mind, Gartner predicts that energy demands will more than triple by 2030 due to the need to handle AI requirements, requiring a complete overhaul of data center power and cooling infrastructure.

To remain competitive, heads of I&O should:

• Collaborate: Work with stakeholders in both AI and cloud initiatives to align strategies with business objectives.

• Plan for AI-infused offerings: Focus on the additional value and ROI of AI-enabled cloud solutions.

• Optimize costs: Establish financial management frameworks for AI workloads to prevent overspending.

• Integrate security: Blend cloud, security, and AI planning, as securing AI activities will be central to most security strategies by 2030.

Proactively rearchitecting infrastructure and operational models for AI workloads will help I&O leaders avoid competitive disadvantages and seize new opportunities.

A: AI-enhanced industry cloud solutions offer enterprises the chance to move beyond siloed benefits, enabling seamless integration of data, analytics, and AI capabilities for smarter decision-making and automation. Gartner predicts that by 2030, companies that fail to optimize the underlying AI compute environment will pay over 50% more than those that do.

Enterprises face several challenges as they adopt these technologies. Achieving strategic alignment can be difficult, with many organizations struggling to realize business value from cloud deployments due to a lack of integration across systems. 

The move to AI-infused solutions also complicates procurement processes, requiring a reevaluation of strategies and increased collaboration among teams. Additionally, as AI becomes central to business operations, robust security and governance are essential to protect sensitive data and ensure compliance.

If I&O leaders can address these challenges, it offers a chance for competitive differentiation by automating processes and enhancing decision-making, positioning businesses as leaders in their fields.

To unlock value, enterprises should engage all key functional areas to integrate IaaS, PaaS, and SaaS for AI-enabling solutions. They should also build or participate in ecosystems for industry-specific AI agents. Finally, they must improve infrastructure and plan for high-performance, energy-efficient AI workloads.

A: Digital sovereignty, which is control over data, operations, and technology, is increasingly critical due to geopolitical tensions and evolving regulations. By 2030, over 75% of enterprises will have a digital sovereignty strategy, with many opting for hosting environments that offer greater sovereignty, even at the cost of technical capabilities.

To address sovereignty-related risks, enterprises should:

• Define requirements: Clarify data, operational, and technical sovereignty needs for each deployment.

• Evaluate hosting options: Assess infrastructure choices, from private cloud to sovereign and distributed clouds, based on sovereignty and risk.

• Engage with vendors: Understand sovereignty offerings and technical solutions for data control.

• Plan for flexibility: Ensure cloud strategies are agile enough to adapt to regulatory and geopolitical changes.

Proactively addressing digital sovereignty helps enterprises mitigate compliance risks and enhance strategic flexibility in a changing environment.

Gartner clients can learn more in The Future of Cloud in 2030: AI-Enabling Cloud Services.

About Gartner AI Use Case Insights

Gartner AI Use Case Insights is an interactive tool that helps technology and business leaders efficiently discover, evaluate, and prioritize AI use cases to potentially pursue. Clients can search over 500 use cases (applications of AI in specific industries) and over 380 case studies (real world examples) based on industry, business function, and Gartner’s assessment of potential business value. Clients can access the interactive tool at https://tools.gartner.com/use-case-insights. 

Gartner IT Infrastructure, Operations & Cloud Strategies Conference 

Gartner analysts will provide additional insights on cloud strategies and infrastructure and operations trends at the Gartner IT Infrastructure, Operations & Cloud Strategies Conferences taking place November 17-18 in London, December 2-4 in Tokyo and December 9-11 in Las Vegas. Follow news and updates from these conferences on X and LinkedIn using #GartnerIO.