Before the pandemic, the world of Data Analytics and Artificial Intelligence was already growing increasingly sophisticated and companies were understanding their potential to make their day to day business operate more advantageously. However, it was not until the onset of the global crisis that companies embraced its true potential.

During the pandemic, PwC Luxembourg carried out a study to understand how companies intended to use both Data Analytics and Artificial Intelligence within their ecosystems. In 2020, 52% of companies in Luxembourg accepted the use of Artificial Intelligence and used AI tools and services. In 2019, this figure was 24%, showing an increase of 117% from the previous year. Its adoption thus skyrocketed as a consequence of the global pandemic. 

The pandemic and acceleration of AI adoption acted as a catalyst for asserting the value of cloud computing. A report published by Gartner showed that subsequent to the pandemic, the global spending on public cloud services grew by 18.4% to $304.9 billion in 2021. Throughout the pandemic, cloud computing was able to provide businesses with business continuity and stability as entire organizations adjusted to remote working overnight. Gartner now predicts that by 2025, business spending on public cloud computing will overtake traditional IT spending. In addition to this, it is predicted that 65.9% of spending on application software will be directed toward cloud technologies in 2025, signaling an increase from 57.7% in 2022. Such statistics usher in a new era for the IT industry and is fueling what will be known as the ‘great cloud shift’.

The Grand Duchy is already well positioned on the global stage when it comes to the adoption of AI tools. Businesses are already incorporating data expertise into their day-to-day business and are using advanced analytics tools to gain a greater understanding of their customers to create innovative products, whilst also optimizing internal processes. However, despite widespread adoption of both data analytics and AI, there is a lack of talent when it comes to effective deployment. This is a critical hurdle for companies to overcome. In addition to this, and whilst, it is important to note that even though AI, Data Analytics and the cloud spending has accelerated, the quality of data centers were challenging to run and manage before the pandemic. There were great risks and costs involved in running private data centers. As we pursue our journey along the road of digital transformation, the switch towards a public cloud or the use of public cloud services will be cheaper and more efficient for businesses.

Luxembourg is a leader within the market when it comes to AI adoption and data management. The journey to the public cloud must reflect this authority. In order to prepare for the cloud shift and accelerated speed of AI adoption, businesses must assess their budgets and invest in the two following steps: their journey to the public cloud and then the expertise to implement and manage the data. Businesses that fail to adapt to keep up to the cloud shift will risk becoming antiquated. However, making the decision to invest in migration to the public cloud is just the first step. The process of migration itself can be a challenging process that can include rewriting and re-platforming applications, readdressing compliance processes and changing security systems. For this reason, it is crucial for businesses to seek external support and expertise for their cloud strategies in order to successfully migrate with ease and peace of mind.

Source: written by George Ralph, Global Managing Director & CRO at RFA.