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Press Release

Cloud-powered organisations outshine competitors in gaining Generative AI advantage, finds PwC survey

Mon 20 Nov 2023

A recent PwC survey has revealed that UK organisations fully committed to cloud technology, known as ‘cloud-powered companies’, are setting themselves apart in terms of performance, innovation, and unlocking value from Generative AI technology.

The survey, encompassing over 400 business and technology executives, highlighted that a significant return on investment (ROI) is expected within the next 12 months for these companies.

Despite these promising prospects, only 16% of UK organisations are considered ‘cloud-powered’, having scaled cloud adoption across all business functions. These organisations are at the forefront of modernising core technology and leveraging AI, with two-thirds believing they will have all operations in the cloud within two years.

Warren Tucker, Cloud and Digital Transformation Leader at PwC UK, said: “Organisations that drive their modernisation agenda with conviction and clear cloud-powered commercial strategies are creating a competitive advantage. They will create flexibility for the future and most importantly create value from new tech-enabled IP and data.”

The survey indicated that cloud-powered organisations can expect numerous advantages, including enhanced customer experience (58%), improved cyber resilience (58%), faster time to market (55%), and cost savings (54%).

With 38% of UK respondents investing in AI and machine learning, an enterprise-wide data strategy using cloud technologies allows organisations to reduce costs, add intelligence, increase speed, improve processes, and make real-time automated decisions and predictions.

In addition, data monetisation, the ability to sell anonymised data and insights on public cloud exchanges, unlocks entirely different business models and streams of revenue.

Tucker further noted the strategies businesses are adopting: “Many businesses are rethinking how to more widely adopt cloud and automation to better drive efficiency.”

Conversely, many UK organisations lag behind, using cloud primarily for IT improvement and application migration, hindered by budgetary constraints, skills shortages, and legacy technology.

Around a third of respondents are only used cloud for IT improvement and rewriting existing applications, with one in ten using it purely for the migration of existing applications and workloads.

Chris Oxborough, Cloud Transformation Leader for Risk at PwC UK, highlighted the role of data in transformation: “Cloud technologies are key to creating continuous value from data and fast-growing technologies, including AI and Generative AI. Access to richer, better data and insights enables more robust reporting, and smarter decision-making across the organisation.”

The survey also underscores the importance of having the right skills. To overcome barriers to digital transformation success, 55% of UK respondents plan to hire or contract staff to address skills gaps, while 51% will upskill their existing workforce.

The PwC survey underscores the transformative power of cloud technologies in the UK business landscape, with cloud-powered organisations poised to reap substantial benefits and set new benchmarks in innovation and growth.

 


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