Australian IT leaders face AI, infrastructure, & risk hurdles

A report released by Pure Storage in collaboration with the research firm Vanson Bourne has highlighted key priorities and challenges currently faced by Australian IT leaders. As part of a global study titled "The Innovation Race: Reducing Risk and Navigating the AI Frontier for Future Success", the survey involved input from 1,500 C-level executives and decision-makers, including 200 from Australia.

The findings underline the pressing necessity for balancing risk management with the drive towards innovation, particularly in the realm of artificial intelligence (AI). According to the report, 96% of Australian IT leaders view AI as a significant opportunity for business transformation. Organisations are dedicating substantial resources to improving efficiencies, automating tasks, and enabling data-driven decision-making through AI.

However, infrastructure challenges pose a significant threat to the realisation of AI's potential. The survey reveals that 84% of business leaders fear that AI-generated data could surpass the capacity of current data centres. Furthermore, 82% express concerns that existing infrastructure may not be able to keep pace with advancements in AI technology. These concerns are underscored by projections that 58% of IT departmental time and over half of the IT budget will be allocated to AI efforts in the coming year.

Economic pressures further complicate the innovation landscape. Rising energy costs and technology debt hinder the ability to allocate resources effectively for innovation. The report found that 59% of IT teams are focused primarily on maintaining operations, which limits innovation efforts. While cloud service costs exacerbate these challenges, the economic environment adds an additional layer of complexity to resource allocation.

Cybersecurity also remains a critical issue. An overwhelming 91% of CIOs and IT leaders prioritise reducing their organisations' risk profiles, the highest rate among all surveyed countries. Moreover, 41% of IT leaders identify cyber threats as a major risk, and a significant number (91%) believe that budgets spent on managing cyber threats could be more effectively utilised in driving innovation.

Commenting on the research, Amy Rushall, Area Vice President for ANZ at Pure Storage, stated, "Australian IT leaders are acutely aware of the challenges posed by their current infrastructure's ability to support AI, and many fear falling behind in the Innovation Race. This research is designed to help identify and address a wide range of risks beyond the obvious cyber threats, enabling a strategic balance between security and innovation. By tackling rising energy costs and evaluating AI readiness through a modernised infrastructure approach, Australian organisations can better position themselves to leverage AI for sustained success."

The report serves as a crucial barometer of the current state of AI readiness and risk management among Australian businesses, providing insights into the strategic investments needed to navigate the complexities of today's technological and economic landscape. The findings stress the necessity for resilient, well-integrated technology systems capable of accommodating the explosive growth in AI-generated data while managing risks and controlling costs.