AI Faces Crucial Year Ahead, According to NetApp’s 2024 Data Complexity Report

NetApp, a leader in intelligent data infrastructure, has released its second annual Data Complexity Report, which provides an in-depth analysis of how global organizations are navigating the increasingly complex challenges of managing data, particularly in the context of artificial intelligence (AI). This report offers a global perspective on the impact of AI on organizations as we approach 2025 and beyond. It provides crucial insights for businesses aiming to leverage AI’s potential while navigating the complexities and risks that come with this transformative technology.

The report indicates that 2025 will be a pivotal year for AI as organizations shift from the experimental phase to scaling their AI capabilities. Gabie Boko, Chief Marketing Officer at NetApp, highlights that businesses are making substantial investments to drive innovation and operational efficiency. However, she points out that these efforts will only succeed if global technology executives can effectively address the mounting challenges of data complexity, security, and sustainability. She stresses that intelligent data infrastructure, particularly unified data storage, will play a central role in unlocking the full potential of AI.

One of the key areas explored in the report is AI investment, with a focus on whether organizations can afford to continue funding AI initiatives. It was found that two-thirds of companies worldwide report their data as either fully or mostly optimized for AI use, meaning it is accessible, accurate, and well-documented for AI applications. Despite this progress, the report underscores that 2025 will demand even greater investments in AI and data management. Forty percent of global technology executives believe that unprecedented levels of investment will be required for their companies to successfully scale their AI operations. While organizations have made significant strides in optimizing their data for AI, future breakthroughs will require a continued commitment of resources and financial support.

Another critical issue raised in the report is the challenge of data silos and their potential to impede AI success. The importance of unifying data is increasingly recognized as a driving force behind successful AI outcomes. According to the findings, 79% of global tech executives believe that unifying data is essential to achieving optimal AI results. Companies that have implemented unified data storage systems are able to eliminate data silos by seamlessly connecting data regardless of its type or location across hybrid multicloud environments. This accessibility ensures that data is always available for AI applications. Organizations that prioritize data unification are more likely to achieve their AI objectives by 2025. The report also reveals that only 23% of companies that focus on unifying their data expect not to reach their goals, compared to 30% of companies that do not prioritize data unification. The report highlights that investment in data management and infrastructure has become the top priority for organizations, with executives placing twice as much emphasis on it as on other AI-related initiatives. This trend is expected to continue as data unification becomes more crucial for AI success.

Data security is another area of concern, particularly as AI adoption increases. The report highlights that global tech executives are preparing for a significant rise in cybersecurity threats, with 41% anticipating a sharp increase in security risks by 2025. Countries that are leading in AI adoption, such as India, Japan, and the United States, are facing security challenges at nearly double the rate of countries that are further behind in AI implementation, like Germany, France, and Spain. The rise of AI has expanded the attack surface of many organizations, creating new vulnerabilities, including the need to protect AI models themselves, defend exposed data sets, and ensure that data remains secure and available for AI applications. AI-driven security threats have become a primary source of stress for global tech leaders, with 59% of executives citing these risks as a major concern. The heightened focus on cybersecurity reflects the growing complexity of cyber risks in the AI era. However, there is a positive shift as well: the focus on cybersecurity as a top priority has decreased by 17% since 2023, indicating that organizations are making progress in addressing these evolving threats.

The report also delves into the environmental implications of AI adoption, particularly with respect to data sustainability. As AI adoption accelerates, 34% of global tech executives anticipate significant shifts in their corporate sustainability processes, and 33% expect new government energy policies and investments to be enacted. The infrastructure required to manage the growing volumes of data driven by AI demands substantial energy, which could conflict with sustainability goals. Countries that are leading in AI adoption are experiencing a greater environmental impact compared to those that are not. Despite the growing concerns, the report notes a slight decline in the focus on carbon footprint reduction, from 84% of companies in 2023 to 72% in 2024. This suggests that while sustainability remains a priority, there are challenges in balancing the energy demands of AI with broader environmental objectives. Moving forward, organizations will need to find ways to manage the environmental costs associated with AI while maximizing its potential for innovation.

In summary, NetApp’s Data Complexity Report emphasizes the need for businesses to invest in intelligent data infrastructure, prioritize robust security measures, and factor sustainability into their AI strategies in order to stay competitive in the rapidly evolving landscape of AI. Companies that embrace data unification and implement strong security practices will be better positioned to harness AI’s transformative power. Additionally, by integrating sustainability into their data strategies, these organizations will not only future-proof their operations but also gain a competitive edge. As AI continues to shape the business world, those organizations that address these challenges head-on will be able to drive innovation, ensure resilience, and make responsible use of data in the new AI-driven era.