# Infosys POV 
Title: The synergy between AI and cloud transformation 
Author: Infosys Consulting 
Format: PDF 1.6 

---

  Page: 1 / 10  

---

 An Infosys Consulting Perspective By Wahid Sattar & Ross Oldbury Consulting@Infosys.com | InfosysConsultingInsights.com The synergy between AI  and cloud transformation How prepared are you for the future of work and  innovation? 

---

  Page: 2 / 10  

---

 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 2 Introduction The exponential growth of data and the increasing complexity of business  operations have necessitated the adoption of cloud computing as a critical  enabler of digital transformation with spending on-end user cloud computing  services hitting a staggering $600 billion in 2023. In parallel, artificial intelligence  (AI) has emerged as a game-changer in the technology landscape with  spending in 2023 expected to hit between $160 billion to $400 billion and with it  transforming the way businesses operate and driving innovation across various  domains. This paper explores the relationship between AI and cloud  transformation, highlighting the synergies, strategies and benefits of their  integration, along with the key technologies that underpin their relationship.<|endoftext|>Joint spent on cloud computing  and AI could reach up to   $1 trillion by end of 2023.  

---

  Page: 3 / 10  

---

 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 3 The emergence of AI and cloud computing AI and cloud computing have emerged as two of the most disruptive  technologies in recent years. While AI is transforming the way we process  data and automate tasks, cloud computing is enabling organizations to scale  and optimize their operations. The convergence of these two technologies has  created new possibilities for businesses to leverage data and gain insights,  streamline processes, and drive innovation.<|endoftext|>1.<|endoftext|>Natural Language Processing (NLP) and Chatbots: NLP is an AI  technology that allows machines to understand and interpret human  language. Chatbots are AI-powered applications that use NLP to interact  with users in a conversational manner. Together, NLP and chatbots are  enabling businesses to provide more personalized and efficient customer  service, while reducing the workload on human customer service  representatives. Think of Mondly: a chatbot transforming how people  learn languages combining innovative NLP, Chatbot and NPC (non- playable character) features. In April 2023, OpenAI, the creator behind  the much-publicized ChatGPT, recently closed a $300 million share sale,  valuing the company at nearly $30 billion.<|endoftext|>2.<|endoftext|>AIOps, or Artificial Intelligence for IT Operations, is an emerging  technology that uses machine learning algorithms and advanced analytics  to automate and improve IT operations. This technology is gaining  popularity among companies as it enables them to proactively detect and  resolve issues before they impact business operations. Deploying AIOps  involves several steps. Firstly, companies need to collect large volumes  of IT infrastructure data, including logs, metrics, and events, from their  monitoring tools. Next, this data is processed and analyzed using  machine learning algorithms that can recognize patterns and identify  anomalies.<|endoftext|>

---

  Page: 4 / 10  

---

 These insights are then used to detect and isolate problems in real-time and  provide proactive defense against. A major player in this area is Broadcom,  who completed their acquisition of VMWare, the largest cloud computing  and virtualization acquisition to-date.<|endoftext|>3. Edge-to-cloud: Edge Computing is a cloud computing technology that  enables data processing and analysis to be done at the edge of the network  or closer to the source of the data such as SmartMeters. By leveraging  edge computing, businesses can reduce latency and improve the  performance of cloud-based applications, while also improving data security  and reducing bandwidth costs. The market is expected to grow to over $50  billion (TechTarget) 4. Cloud-based IoT platforms: Cloud-based Internet of Things (IoT) platforms  are enabling businesses to connect and manage IoT devices and sensors  from a centralized location. By leveraging the power of cloud computing  and AI, these platforms are enabling businesses to gain insights into IoT  data and automate IoT-based tasks, such as predictive maintenance.<|endoftext|>5. Cloud-based collaboration: Cloud-based collaboration tools, such as  Microsoft Teams and Slack, are enabling businesses to improve  communication and teamwork across the organization. By providing a  centralized platform for communication and collaboration, these tools are  helping to streamline business operations and improve productivity.  Microsoft are currently testing their flagship AI collaboration offering MS Co- pilot which is built open OpenAi’s GPT4 Large Language Model (LLM) – sure to be game-changer.<|endoftext|>The synergy between AI and cloud transformation | © 2023 Infosys Consulting 4 

---

  Page: 5 / 10  

---

 Examples of AI and cloud transformation in various industries The synergy between AI and cloud transformation | © 2023 Infosys Consulting 5 Healthcare The healthcare industry has been leveraging the synergy between AI  and cloud transformation to improve patient outcomes and reduce  costs. AI-enabled cloud services are being used to develop predictive  models to identify patients who are at risk of developing chronic  diseases, detect diseases at an early stage, and develop personalized  treatment plans. Cloud computing is also enabling healthcare providers  to store, manage and analyze large volumes of patient data, making it  easier to identify patterns and trends, and make informed decisions.  The global healthcare cloud infrastructure spend is expected to reach  over $60 Billion by end of 2023 and analysts estimating the industry  could save ~$200 Billion from further AI investment.  Manufacturing  The manufacturing industry has been using AI-enabled cloud services  to improve operational efficiency, reduce downtime and improve  product quality, spending is expected to increase to over $350 billion  on cloud infrastructure with AI expected to hit ~$15 billion. AI  algorithms are being used to analyze large volumes of production data  to identify patterns and anomalies, enabling manufacturers to predict  machine failures and schedule maintenance proactively. Cloud  computing is also being used to store and manage production data,  making it easier to analyze and optimize operations, and enable  predictive maintenance.<|endoftext|>

---

  Page: 6 / 10  

---

 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 6 Financial services The financial services industry is using AI and cloud  computing to improve risk management, reduce fraud, and  improve customer experience. AI-enabled services are  being used to develop predictive models to identify potential  fraud, detect anomalies, and improve fraud prevention – it is  estimated banks saved over 860 Million Hours with use of  chatbots (Forbes, DataBank). Cloud computing is also  being used to store and manage transaction data, making it  easier to analyze customer behavior and provide  personalized recommendations.  Retail  The retail industry is leveraging the synergy between AI  and cloud computing to improve customer experience and  optimize operations. AI-enabled services are being used to  develop personalized recommendations, enable visual  search, and optimize supply chain management. Cloud  computing is also being used to store and manage  customer data, making it easier to analyze behavior and  provide personalized recommendations; expected spend to  reach over $30 Billion coupled with AI innovations in  Metaverse, personalization, ethics and delivery expected to  significantly transform the customer experience.  

---

  Page: 7 / 10  

---

 The synergy between AI and cloud transformation | © 2023 Infosys Consulting 7 Cloud strategy  with AI and innovation As businesses continue to leverage the power of cloud computing to  streamline operations, reduce costs, and drive innovation, the importance of  having a cloud strategy in place has become increasingly clear.<|endoftext|>One of the key drivers of cloud strategy is cloud innovation which refers to the  development and deployment of new and cloud-based technologies, services,  and applications that can help businesses to stay competitive and drive  growth. By leveraging the latest advances in cloud computing, businesses can  gain a competitive edge by being able to rapidly innovate, scale, and adapt to  changing market conditions.<|endoftext|>The integration of cloud computing and artificial intelligence (AI) has become  a major focus for cloud innovation in recent years. By leveraging AI  technologies such as machine learning, natural language processing, and  computer vision, businesses can gain insights and automate tasks that were  once impossible to achieve at scale. For example, by using AI-enabled cloud  services, businesses can automate routine tasks such as data entry,  processing, and analysis, freeing up valuable time and resources that can be  used to focus on higher-value activities.<|endoftext|>Cloud innovation is also driving the development of new and cloud-based  services and applications that can help businesses to drive growth and stay  competitive. For example, cloud-based analytics services are helping  businesses to gain insights into customer behavior, while cloud-based  collaboration tools are improving communication and teamwork across the  organization. Cloud-based services are also helping businesses to streamline  their operations,