Business AI

CIOs Face Rising Costs and Power Demands from AI Adoption

Reports from a Gartner IT symposium reveal that enterprise IT leaders are concerned about exponentially higher cloud spend and data center energy needs.

Olivia Sharp 1 min read 550 views
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At a Gartner IT symposium, CIOs expressed growing concern over the rising cloud costs and extreme energy consumption associated with enterprise AI adoption.

The Operational Reality of AI

While the enterprise AI market is expanding rapidly, Chief Information Officers are grappling with the significant operational challenges of deploying the technology, according to reports from the Gartner IT Symposium in Orlando. The primary concerns for IT leaders are the rising costs of cloud computing and the high energy consumption of AI-optimized data centers.

Shanthi Pudota, chief data officer at the Bank of Oklahoma, said that without proper management, cloud spending with AI "is going to be exponentially higher." Research from TD Cowen, cited at the conference, projects that public cloud spending will quadruple …

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