Enterprises in the U.S. are increasingly turning to public cloud services as they seek to adopt artificial intelligence (AI) technologies, according to a new report from Information Services Group. The 2024 ISG Provider Lens™ Multi Public Cloud Services report highlights how the growing need for scalable infrastructure is driven by the challenges of developing and deploying AI applications.

Organizations are recognizing the high costs associated with adopting AI, particularly generative AI, which requires sophisticated hardware like graphics processors and large language models. With these resources often not affordable for individual enterprises to develop internally, many are leveraging cloud platforms for their computing needs.

Anay Nawathe, ISG cloud delivery lead for the Americas, noted the interdependent relationship between AI and cloud computing, predicting that increased AI adoption will boost growth in the public cloud sector.

The report underscores that while generative AI is making strides within enterprises, implementations so far remain mostly at the proof-of-concept stage, aimed at exploring the technology's capabilities in areas such as content creation and personalized marketing. Although organizations are testing these applications, many customer-facing solutions are still not in full-scale production.

The need for immediate cost management is growing as companies aim to adapt to digital transformation amid tight budgets. While the flexibility of public cloud infrastructure is beneficial, it introduces complexities such as intricate billing structures and unforeseen costs.

As enterprises navigate their cloud strategies, practices surrounding financial operations (FinOps) and green operations (GreenOps), which track costs and carbon footprints respectively, are becoming essential for efficient resource allocation.

The demand for consulting and transformation services has increased, reflecting a shift from traditional IT systems to multicloud and cloud-native solutions. Larger companies are pursuing industry-specific optimizations, while midsize firms are focused on cost-effectiveness and swift implementation of cloud transitions.

The ISG report indicates that managed services have significantly evolved, particularly through the incorporation of AI-driven automation to enhance cloud optimization, enabling companies to more effectively manage their multicloud environments.

With U.S. enterprises emphasizing the need for AI-prepared cloud solutions, the report also touches on public cloud trends, including advancements by hyperscale operators and a rising demand for adaptable infrastructure for solutions such as SAP HANA.

The report evaluates 59 service providers across seven categories, identifying key players such as Accenture, Capgemini, and Rackspace Technology as leaders. Additionally, the report recognizes Persistent Systems as the top performer in customer experience within the multi-public cloud services arena.