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Enterprise IT Spending Is Broken: How To Unlock Real AI Value

Mar 21, 2025 - forbes.com
The article discusses the challenges enterprises face in realizing the value of their IT investments, particularly in AI and cloud technologies. Despite significant spending, many digital transformation projects fail due to issues like data fragmentation, outdated processes, and inefficient cloud strategies. The article highlights the importance of structured, unified data and strategic alliances, such as the SAP-Databricks partnership, to address foundational challenges. It emphasizes the need for enterprises to prioritize data unification, reevaluate cloud strategies for AI optimization, and shift towards AI-driven business models to achieve meaningful transformation.

To succeed, enterprises must implement a data fabric architecture, adopt AI-native cloud infrastructure, and focus on outcome-based consulting. The article argues for a shift in IT spending towards intelligent, adaptive technologies, moving away from traditional ERP and SaaS solutions. Organizations are urged to embrace an AI-first mindset, integrating AI into their core operations to drive automation and efficiency. The future will favor those who restructure their business models for data-driven decision-making, while those who fail to adapt risk falling behind.

Key takeaways:

  • Enterprises must prioritize data unification and real-time analytics to unlock AI's full potential.
  • Organizations need to move beyond traditional multi-cloud strategies and adopt AI-native cloud infrastructure for optimized workloads.
  • AI initiatives should focus on full-scale automation and outcome-based consulting rather than isolated pilots and traditional ERP solutions.
  • Without structured and unified data, AI investments are likely to fail, as highlighted by the SAP-Databricks partnership.
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