AI driving increase in modernization spend

A study of 500 senior IT decision makers finds investment in IT modernization is set to increase by 27 percent in 2024, as enterprises look to take advantage of new technologies, such as AI and edge computing, while meeting increasing productivity demands.

But the study from Couchbase finds 59 percent of respondents are worried their organizations' ability to manage data won't meet GenAI's demands without significant investment.

Enterprises plan to spend on average $35.5 million on IT modernization in 2024 with more than a third of that set to be on AI. Drivers for this include rapidly prototyping and testing new ideas, making employees more efficient, and identifying and capitalizing on new business trends.

"Enterprises have entered the AI age, but so far are only scratching the surface," says Matt McDonough, SVP of product and partners at Couchbase. "Almost every enterprise we surveyed has specific goals to use GenAI in 2024, and if used correctly this technology will be key to managing the challenges facing organizations. From keeping pace with end-user expectations for adaptable applications, to meeting ever-accelerating productivity demands, GenAI-powered applications can provide the agility and productivity enterprises need. Enterprises must be certain that their data architecture can cope with GenAI's demands, as without high-speed access to accurate, tightly managed data it can easily guide individuals and organizations down the wrong path."

Among other findings 54 percent say they don't have all the elements of a data strategy suitable for GenAI in place. Only 18 percent of enterprises have a vector database that can store, manage and index vector data efficiently.

There are wider concerns about the use of AI too. 64 percent of respondents believe most organizations have rushed to adopt GenAI without understanding what's needed to use it effectively and safely. Worryingly, this may have been achieved by weakening other areas. 26 percent of enterprises have diverted spending from other areas to meet AI objectives -- most often from IT support and maintenance, and from security.

"Investing in the right data management and infrastructure architecture will help unlock GenAI's transformative potential," adds McDonough. "For instance, organizations don't need vast, complex 'jack of all trades' applications to improve productivity and meet expectations, and nor do they need multiple, costly databases to meet their needs. An adaptive application that can use GenAI to enhance a specific end-user experience will be equally effective while also having a much faster time to market. And a modern multipurpose database with all necessary functionalities will help keep architectures and costs as streamlined as possible."

You can read more on the Couchbase blog.

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