The 2024 Global AI Report

The Impact of
AI on Business
Trends, Challenges and
Opportunities in 2024
Table of contents Business is undergoing
A message from Srini Koushik ������������������������������3
a monumental shift,
Key findings��������������������������������������������������������������� 4
AI strategy����������������������������������������������������������������� 6
one that is likely to
Impact on investment��������������������������������������������12 redefine business
Use cases and generative AI��������������������������������15 operations and
Challenges���������������������������������������������������������������� 17
permanently alter the
way people interact
Responsible AI����������������������������������������������������������19
Talent strategy������������������������������������������������������� 22
Looking forward����������������������������������������������������� 26 with technology.
Go further with FAIR for AWS ������������������������������27
About Amazon Web Services (AWS)������������������� 29
About Rackspace Technology����������������������������� 29
About Foundry for AI by Rackspace (FAIR)������ 29
Appendix:
methodology & audience profile����������������������� 30

The 2024 Global AI Report 2

A message from Srini Koushik
AI conversations have quickly gone
mainstream and organizations across
FAIR offers three distinct service offerings
designed to meet the needs of every
It’s crucial to both
the world are starting to find ways to industry and organizational requirement: understand what
leverage this fast-evolving technology.
From the way organizations interact with
Ideate, Incubate and Industrialize.
you want to achieve
their customers to how the work gets
FAIR is committed to continuously
monitoring the latest trends and
and determine how
done, AI is finding its way into all aspects
of automation and human interaction.
advancements in AI, and that’s why I’m you will get there.
Srini Koushik excited to present our 2024 AI Research
Today, in the early days of a new major
President AI, Report, “The Impact of AI on Business:
transformation, AI adoption strategies
Technology & Sustainability, Trends, Challenges and Opportunities.”
vary greatly — with the leadership of
Rackspace Technology Our comprehensive findings reflect the
some organizations standing hesitantly
voices and opinions captured in our global
on the shore while others dive into
survey of more than 1,400 IT decision-
the ocean headfirst. Regardless of
makers who shared their experiences with
your position on this spectrum, the
AI as it relates to investments, challenges,
process of unlocking the full promise
use cases and talent strategies.
and potential of AI will be a challenge.
After reading this report, please feel
Before integrating AI-driven technologies
free to reach out to our team to talk
in your operations, it’s crucial to
about your AI objectives or to schedule
understand what you want to achieve
a FAIR Ideate session. We’re here to
and determine how you will get there.
help you accelerate the responsible
It’s also critical to choose technologies
adoption of AI, unlock its full potential
you need to deploy in support of AI, and
and quickly transform your organization
discover who you can trust to help you
with this powerful technology.
optimize them to meet your goals.
Get started with AI today.
That is why in 2023, Rackspace Technology
launched Foundry for AI by Rackspace Regards,
(FAIR™), a global practice dedicated
to helping organizations accelerate Srini
the responsible and sustainable
adoption of AI across all industries.

The 2024 Global AI Report 3

 Key findings
Change, as always, Business is undergoing a monumental Companies and industries that once Our survey polled

1,420
shift, one that is likely to redefine seemed impervious to such swift
is a constant, businesses operations and permanently transformations are now finding
IT professionals
but never before alter the way people interact with
technology. As we step into 2024, it’s
themselves at the epicenter of change,
compelled to adapt or risk obsolescence.
has it manifested evident that the industry’s trajectory
This rapid commoditization of AI
with such velocity
has diverged significantly from the
technologies — while democratizing
patterns observed in 2022 and 2023.
and magnitude. This is largely attributable to the
access to information and fostering
innovation — also opens organizations
unprecedented impact of generative AI.
to inherent risks, which highlights the Geographic regions
Change, as always, is a constant, but need for the adoption of responsible AI that include
never before has it manifested with such practices. The ease and speed with which Americas, Europe,
velocity and magnitude. AI is rapidly AI can be integrated into various facets
Asia and the
reshaping the business landscape, much of business and society raises concerns
like how the cloud revolutionized IT. Since about ethical use, data privacy and the Middle East
ChatGPT arrived on the scene in late potential for unintended consequences.
2022, generative AI has gone mainstream.
As AI becomes increasingly integrated
Traditionally, technological evolutions,
into our daily lives and economic Across a broad
such as the transition from mainframe
computing to client/server architectures
structures, the challenge lies in range of industries
harnessing its potential responsibly
and, subsequently, the massive shift to
and sustainably while ensuring that
cloud-based solutions, unfolded over
the benefits are widely distributed
decades. Even the disruptions that
and the risks meticulously managed.
seemed rapid by historical standards took
Financial Manufacturing Retail
a few years to permeate the industry. In January and February 2024, Rackspace
Technology® polled 1,420 IT professionals
However, the generative AI revolution is
worldwide and across multiple industry
defying those temporal norms. The pace
verticals. These survey respondents
at which AI technologies are evolving
worked across a broad range of
and being adopted is astonishing, Hospitality Government Healthcare
industries, including financial services,
leading to the disruption of established
manufacturing, retail, hospitality,
business models almost overnight.
government and healthcare in geographic
regions that include the Americas,
Europe, Asia and the Middle East.

The 2024 Global AI Report 4

AI spending is AI benefits The survey results shows In summary
projected to double continue to grow
• AI spending in 2024 is projected to Generative AI is driving monumental

$2.5M 86%
2024 more than double over 2023 to an shifts at breakneck speed. As we continue
average of $2.5 million per company. further into 2024, let’s take a look at the
• The benefits of AI continue to grow latest survey results and analysis to gain
2023 with 86% of companies now reporting a better understanding of the current

74% state of AI adoption, the benefits users

2024

2023 they’re seeing at least modest AI-

oriented gains, up from 74% last year. obtain from it and the road ahead as
these technologies revolutionize the way
• AI users seek visionary innovation
businesses will operate going forward.
and the ability to make better
We will examine how AI is influencing
decisions. However, current AI projects
investment decisions and strategies, along
AI users focus more on enhancing existing
with the obstacles organizations face in
seek visionary products, services and processes
implementing it at the ground level.
But current AI than creating breakthroughs. Also,
innovation projects focus we see that adoption lifecycles are
on enhancing
existing products
uneven across business functions.
Generative AI is driving
and services • While IT departments lead most
initiatives today, other departments,
monumental shifts at
such as marketing and core business breakneck speed.
functions, will shape the next
wave of customer-driven AI.

Other departments will AI cybersecurity • Despite widespread and rapid adoption,

shape the next wave of AI is the top concern businesses are still wary of AI-
associated risks related to security and
compliance, with 58% of respondents
viewing cybersecurity as the top
concern and only 51% adhering to
formalized data policies for compliance.

IT CUSTOMER FUNCTIONAL
SERVICE DEPARTMENTS

The 2024 Global AI Report 5

AI strategy
First, and most urgently, employers must
focus on upskilling employees so that Number-one reason Top two most
they are able to use AI tools effectively.
for using AI: important areas
Improving speed and efficiency of existing
processes is cited as the number-one
to focus on:
reason for using AI, with 34% of survey
respondents saying these benefits
top their list. That means that every
company needs its employees to be
AI-ready in order to capitalize on the
productivity benefits of generative AI.

The other side of the skills-development

coin represents the need to hire AI
talent — the teams that will be building
AI models and applications. This need Developing Ethical AI &
is complicated by the current skills nc employee skills data privacy
c
46% 39%
re
ien

y
I
gap and difficulty in hiring, training asi ic
ng s f
and retaining in-house teams. peed and ef

This dovetails nicely with IT’s concerns

related to employee upskilling. While the
need for upskilling is high (46%), when it
comes to overall business strategy, 39% Every company
of respondents also say that ethical AI needs it employees
and data privacy are crucial on the IT side
of the house and must factor heavily into to be AI-ready in
AI deployment decisions. The concerns
related to ethical AI use and data
order to capitalize
privacy also indicate that adoption must on the productivity
account for the well-being of employees,
the company and its customers.
benefits of AI.

The 2024 Global AI Report 6

Areas important for IT strategy
Please rank the following top three areas in order of importance for your IT strategy
Skills development and employee productivity: concentrating on developing employee skills in AI, to leverage AI to
46% boost employee productivity

39% Ethical AI and data privacy: emphasizing ethical AI practices and data privacy concerns in our AI strategy

Implementation and integration: focusing on implementing and integrating AI technologies into existing business
38% processes
Product development and engineering: effectively integrating AI-driven solutions in product development and
37% engineering to stay competitive

36% Customer experience and service improvement: utilizing AI to enhance customer experience and service delivery

Risk management and compliance: focusing on managing risks associated with AI and ensuring compliance
35% with regulations

35% Research and development: prioritizing research and development in AI to explore new technologies and innovations

33% Business transformation: using AI as a tool for major business transformation and competitive differentiation

Areas important for overall business strategy

Please rank the following top three areas in order of importance for your overall business strategy
Skills development and employee productivity: concentrating on developing employee skills in AI, to leverage AI to
43% boost employee productivity

40% Customer experience and service improvement: utilizing AI to enhance customer experience and service delivery

Product development and engineering: effectively integrating AI-driven solutions in product development and
38% engineering to stay competitive

36% Research and development: prioritizing research and development in AI to explore new technologies and innovations

36% Ethical AI and data privacy: emphasizing ethical AI practices and data privacy concerns in our AI strategy

36% Business transformation: using AI as a tool for major business transformation and competitive differentiation

Implementation and integration: focusing on implementing and integrating AI technologies into existing
35% business processes
Risk management and compliance: focusing on managing risks associated with AI and ensuring compliance
35% with regulations

The 2024 Global AI Report 7

Companies are not only using AI to Most important reasons for using AI/ML currently
refine customer engagement through Please select the top three statements that best describe the most
personalized touchpoints, but also to important reasons for using AI/ML currently in your organization
streamline internal processes, improve
We want to improve the speed and efficiency of existing processes, using automation
efficiency and increase productivity. 34% and reducing manual work.
In fact, 28% of survey respondents say We want to understand our customers better by gaining deeper insights into
they are using AI as a tool to generate 28% preferences and behaviors.
deeper understanding of customer We want to be able to deliver personalized content for our customers improving their
25% overall user experience.
preferences and behavior. That’s
second only to “improving speed and 25% We want to enhance decision making processes with data-driven insights.
efficiency,” which was cited as the
number-one reason for using AI (34%). 24% We want to improve employee productivity.

22% We want to understand the effectiveness of our marketing strategies and content.

We want to use AI/ML to better understand our employees and to improve morale
22% and engagement.

22% We want to enhance cybersecurity measures and protect data exfiltration.

22% We want to increase revenue.

28%
21% We want to be able to offer new services.

18% We want to predict our business performance and industry trends.

Say they are using
AI to understand 18% We want to reduce risk.

customer preferences 18% We want to gain a competitive edge.

and behavior
more deeply

The 2024 Global AI Report 8

 Use of AI/ML within organization
How is AI/ML currently being used within your organization?

53% Enhancing customer experience

Despite the promise of AI to revolutionize
customer interactions and operational 49% Innovating product design
efficiency, its use for enhancing security
and driving monetization remains 47% Supporting human resources
surprisingly limited. More than half (53%)
of respondents are using AI to enhance 42% Integrated into real-time decision making

customer experiences, whereas only 23%

39% Predictive maintenance/predictive failure
say they are enhancing security and only
13% say they’re driving monetization 35% Reduce operational costs through automation
with it. There’s certainly room for growth
and exploration of how organizations 32% Automating business operations (marketing, sales, finance, procurement etc.)
can harness AI’s capabilities to bolster
security and create new revenue streams. 25% Improving knowledge worker productivity

23% Enhancing cybersecurity measures

Use of AI within organization
22% Optimizing energy use

23% 18%

15%
Streamlining supply chain management

Enhancing security Product lifecycle management

13% Drives new areas of monetization

Technologies invested in currently

Which technologies is your organization currently investing in?
Machine learning, deep learning and predictive analytics: focusing on machine
57% learning techniques for predictive analysis and data-driven decision‑making
AI in IoT (internet of things): integrating AI with iot to enhance smart device

53%
50% functionality and data utilization
Robotic process automation (RPA): implementing RPA for automating routine
45% tasks and enhancing operational efficiency

13%
Enhancing 41%
Natural language processing (NLP) and generative AI: concentrating on language
customer processing capabilities for improved customer interaction and content analysis

experiences 38%
Edge computing: focusing on edge computing for real-time data processing
Driving and analysis
monetization 31%
Robotics: AI and ML are integral to modern robotics. This includes autonomous
vehicles, drones and manufacturing processes.
Virtual reality (VR)/augmented reality (AR): computer generated simulations that
27% integrate the real world (AR) or are entirely self-contained (VR)
Computer vision: investing in image and video analysis technologies for
22% applications like surveillance, quality inspection or augmented reality

The 2024 Global AI Report 9

The journey to AI integration is well Stage in AI strategy
underway, with over 60% of respondents What stage is your AI/ML strategy currently at in each of the following areas?
stating that they’ve progressed beyond the
initial phases of AI adoption, and nearly Ideation Proof of concept Early stages Fully integrated into the business
one-third stating they’ve integrated AI into
their business operations fully, highlighting 16% 24% 33% 28% Employee productivity
the perceived advantages of early
adoption by companies. This transition
13% 27% 31% 29% Internal enterprise/IT benefits
from ideation to full integration also
reflects growing confidence in AI’s role as
a critical component of business strategy. 10% 22% 34% 33% Products/services for customers

We see a broad spectrum of players

outside of IT who are integral to the Functions driving AI strategy
successful adoption of AI. Progressive
Which functions are driving the AI
CIOs might see their leadership of AI
strategy within your organization?
adoption initiatives as a path to becoming
Chief Digital Innovation Officers (CDIOs), 57% IT/technology
while others outside of IT contribute
to strategy and use cases (CDOs and 46% Customer service
CTOs, respectively). This collaborative Functional departments
approach among leadership suggests 44% (marketing, sales, HR, finance, etc.)
that successful implementation of
40% Engineering/product development
AI requires a concerted effort across
multiple areas of an organization. 36% Operations

Business units (revenue

32% generating groups)
Executive leadership
29% and the board

1/3
Of respondents have
fully integrated AI
into the business

The 2024 Global AI Report 10

The narrative of AI in business is Change in vision for incorporating AI into core activities
one of rapid evolution and growing How has your organization’s vision for incorporating AI/ML
significance. With nearly all survey into its core activities changed over the past year?
respondents acknowledging the
2023 2024
importance of AI to their core activities,
it’s clear that AI is no longer a futuristic 15% 35% Critical
concept but is, instead, a present-day
55% 81%
40% 46% Very important
strategy and operations imperative.
35% 16% Fairly important
Bearing this out is the fact that 81% of
respondents view AI as “very important” 8% 3% Not very important
or “critical” to their business today,
Not at
whereas only 55% did last year. 1% 1% all important

Respondents viewing AI/ML solutions

AI as very important/ In terms of AI/ML solutions, does your organization typically
critical to their business
35% Work with a trusted AI partner/provider

81%
2024
31% Build in-house solutions

20% Buy off-the-shelf solutions

14% Use a hybrid solution

55%
2023

The fact that 35% of organizations

prefer to work with a trusted AI
partner underscores the importance
of specialized knowledge and
resources that external partners
bring to complex AI projects.

The 2024 Global AI Report 11

Impact on investment

$
Our findings indicate a strong and
growing investment in AI technologies, Investment in AI/ML initiatives in 2024
with a projected average investment
How much does your
of $2.5 million per respondent in
2024, which is more than double the
organization plan to invest
in AI/ML initiatives in 2024?

44%
amount cited in 2023. This surge of
investment is consistent with the
increasing recognition of the benefits of $

$
AI, as evidenced by 86% of companies
reporting at least modest gains from 4% Between $1m – $5m

AI in 2024, up from 74% last year. $100,000 or less

$
Companies recognize
that AI can help
29%
Between
transform all areas $500,000 – $1m $
of their business. 16% 7%
Respondents are not merely Between $100,000 – $500,000 More than $5m
experimenting with AI; they are seeing
tangible advantages, particularly in
improving employee efficiency and
Benefits of AI/ML 49%
talent acquisition, although the focus
realized — overall 37%
on innovation (49%) and sales (48%) To what degree has
remains significant. What’s more, your organization
companies are adopting AI across a realized the potential
broad range of organizational functions, benefits of AI/ML?
rapidly and enthusiastically. The
impacts are widespread, suggesting
14%
companies recognize that AI can help to We’ve seen It’s too We’ve seen
transform all areas of their business. substantial benefits early to say modest benefits

The 2024 Global AI Report 12

Realized “substantial benefit” from AI/ML Realized “modest benefit” from AI/ML
To what degree has your organization realized To what degree has your organization realized
each of the following benefits of AI/ML? each of the following benefits of AI/ML?

49% Increased level of innovation 49% Increased employee productivity

48% Increased sales 48% Ability to hire/recruit new talent

47% Managing/reducing risk 44% Increased revenue streams

46% Improved speed and efficiency of existing processes 44% Acceleration of new product creation

46% Personalised marketing campaigns 44% Cost reduction in operations

Increased understanding of your business

45% and customers
43% Increased understanding of your business and customers

44% Increased revenue streams 41% Improved decision making

44% Acceleration of new product creation 41% Improved customer satisfaction

44% Enhanced performance/functionality of products 41% Reduced costs of new product development

44% Improved customer satisfaction 41% Reimagining your business model

43% Improved decision making 40% Enhanced performance/functionality of products

43% Re-imagining your business model 40% Personalized marketing campaigns

43% Reduced costs of new product development 39% Managing/reducing risk

40% Cost reduction in operations 38% Improved speed and efficiency of existing processes

37% Ability to hire/recruit new talent 37% Increased level of innovation

37% Increased employee productivity 36% Increased sales

The 2024 Global AI Report 13

 KPIs used to measure the success of AI/ML initiatives
Which of the following KPIs does your organization use
to measure the success of AI/ML initiatives?
When it comes to establishing whether or
67% Revenue growth
not AI is being used successfully within an
organization, we see that the vast majority 64% Cost savings
of respondents (64%) cite revenue
growth and cost reductions as leading 52% Customer satisfaction/net promoter scores
indicators of success. By contrast, new
product development (46%) ranks about 48% Profit margins

mid-pack. This data spotlights a strategic

46% New product launches
orientation toward AI adoption as a means
to improve financial metrics, operational 43% Process enhancement/automation
efficiencies and customer satisfaction.
This also showcases AI’s role in creating 38% Employee productivity
competitive advantages for companies
by accelerating efficiency, trimming costs 37% Time to profit

and amplifying customer experiences.

32% Time to market

Respondents citing revenue 23% Time to insight

growth and cost reductions
as leading indicators of success Key influences driving AI/ML adoption within organization

64%
What are the key influences driving AI/ML adoption within your organization?

63% Cost reductions

61% Greater employee efficiency

59% The need to improve customer experience

56% The need for increased innovation

44% Monetization — creating new ways to drive revenue

41% Reducing manual activity

37% Competitive advantage

35% Senior leadership/board level strategy

35% Increasing reliance on automation

32% The desire for greater insight

The 2024 Global AI Report 14

Use cases and generative AI
Out of a pool of 15 use cases, over half and improving efficiency among critical
Organizations
of our survey respondents say that operations. In particular, intelligent
these four are gaining the most traction: search (62%) and document processing are interested in
1) intelligent search, 2) document
processing, 3) fraud detection and 4)
(61%) indicate that organizations are
interested in making information retrieval
making information
customer engagement. This indicates that and handling more efficient, which is retrieval & handling
there’s currently a focus on automation essential to digital transformation efforts.
more efficient.

AI use cases Use cases gaining most traction in terms of AI/ML initiatives
gaining the Which of the below use cases are gaining the most traction
most traction in terms of AI/ML initiatives within your organization?

62% Intelligent search 29% Knowledge management

Document processing (OCR, document

61% classification, extraction, digitization)
26% Autonomous systems & automation
Intelligent Fraud
search detection
56% Fraud detection and cybersecurity 23% Predictive analytics

Customer engagement (CRM, chatbots,

54% 21% Speech recognition
call centers, customer affinity)

46% Sales and marketing analytics 19% Recommender systems

Document Customer 43% Content generation 14% IoT

processing engagement
Image and video recognition 11%
40% and classification
Copilots and assistants

34% Predictive maintenance

The 2024 Global AI Report 15

The data indicates a strong and
growing interest in generative AI among
The rise of copilots
organizations, with a clear trend toward and assistants
moving from ideation and prototyping to
practical, production-level applications.
as a category
The rise of copilots and assistants as a
hints that new
category hints that new and innovative uses and innovative
of generative AI are likely to emerge soon.
The fact that 0% of respondents indicated
uses of generative
they would not be engaging with AI till next AI are likely
year reinforces AI’s importance as well as
its promise across various industries.
to emerge soon.

Stage of generative AI currently and expected in a year’s time

Which of the following statements best describes the stage your organization is currently
at with regards to generative AI, and where you anticipate this being in a year’s time?
Currently Next year

1% 0% No plans to use generative AI

We are interested and will begin ideation for use of

28% 20% generative AI
We are ideating on use cases and will have prototypes
41% 42% for use of generative AI
We have completed prototypes for use of generative AI
20% 25% and plan on taking a few use cases to production
We have put generative AI use cases in production and
9% 12% plan on expanding usage

The 2024 Global AI Report 16

Challenges
Security concerns (38%) are the most Accuracy challenges (30%) are a
commonly cited challenge related significant concern for nearly one AI adoption
to AI adoption, indicating that many third of respondents, highlighting
organizations are concerned about the the difficulties in ensuring that AI
top challenges
potential vulnerabilities posed by AI models perform reliably and generate
solutions. The complexity of AI models accurate outputs. The consequences
Security

38%
and the vast amounts of data they of inaccurate AI outputs can range
process can create significant security from minor inconveniences to serious
challenges, necessitating advanced errors with far-reaching implications,
security protocols and threat detection. emphasizing the need for rigorous
testing and validation processes.
Unfortunately, this challenge is
compounded by a lack of skilled Finally, 28% of respondents cite legacy
personnel needed to effectively technology barriers, indicating that
Accuracy

30%
implement and manage AI technologies. outdated infrastructure and systems can
This talent gap in the AI space, where hinder the integration and effective use
demand for skilled professionals of modern AI solutions. This can manifest
outstrips supply, highlights the as compatibility issues, data silos and the
importance of upskilling staff to inability of legacy systems to handle the
bridge the knowledge gap. processing demands of AI applications.
Overcoming these barriers often requires
The complexity of AI significant investments in technology Legacy tech

28%
upgrades and migration efforts, a
models and the vast formidable task for many businesses.
amounts of data can
create significant
security challenges.

The 2024 Global AI Report 17

Biggest pitfalls in leveraging Biggest barriers to drawing Biggest risks
AI/ML for organization actionable insights from data regarding AI adoption
Which of the following are What are the biggest barriers to your Which of the following
the biggest pitfalls in leveraging company’s ability to draw actionable are the biggest risks you
AI/ML for your organization? insights from data and act on these? see regarding AI adoption?
Lacking the capabilities or talent to
38% Security 42% effectively manage our data
58% Cybersecurity

Inability to process data quickly

37% Lack of skills/staff 38% enough to act on it in time
53% Safety

Inability to find leading indicators

30% Challenges with accuracy 36% of problems
50% Explainability and transparency

Inability to collate, structure and

28% Legacy technology barriers 35% integrate data in a meaningful way
44% Regulatory compliance

Too much data from too

27% Lack of analytical tools 33% many sources
37% IP infringement

Lack of explainability Data is stored in too many

26% and transparency
31% different systems
33% Equity

There is no single owner or

26% Ethical and bias issues 31% oversight of the data
26% Inaccuracy

25% Difficulty in identifying ROI 30% Data quality issues

24% Compliance 24% Government/legal regulations

22% Governance

Inability to effectively use or draw

17% actionable insights from data

The 2024 Global AI Report 18

Responsible AI
Responsible AI refers to the development, Ethical AI appears to be a valued principle
deployment and use of AI in a way globally, and foundational to ethics is the
Companies are
that is ethical, trustworthy, fair and element of explainability, which means
prioritizing ethical
unbiased, transparent, and beneficial to that companies must be able to explain
individuals and society as a whole. The how AI systems make decisions that
governance focused on:
focus should span across innovation, are fair, accountable and transparent
improved productivity and using the while accounting for data privacy.

54%
technology as a tool to eliminate
This underscores that point that
inherent social biases. The goal should
AI must be used responsibly, and
be to use AI as a decision-support
that failing to adhere to responsible
system, and not as a decision-maker.
practices can lead to vulnerabilities, Explainability
As companies increasingly integrate AI legal issues and reputational damage. & fairness
across functions, they are doing a good job The urgency highlights the need for
of prioritizing ethical governance focused robust governance to sidestep pitfalls
on explainability and fairness (54%), data and tap into AI’s full potential.

51%
security (51%) and oversight (47%).

Ethical AI appears
to be a valued Data security
principle globally.

47%
Oversight

The 2024 Global AI Report 19

AI governance Key considerations Potential consequences
Which of the following has your for “responsible AI” of not delivering “responsible AI”
organization implemented as part of What are your organization’s key What would be the potential negative consequences
its approach to AI governance? considerations for “responsible AI?” for organizations that fail to deliver “responsible AI?”

54% Responsible and ethical use 55% Data privacy 48% Increased data security risks

Legal repercussions from breeching

51% Data retention, privacy and security 52% Accountability 44% copyright and compliance
Damage to trust and
47% Governance and oversight 48% Transparency and explainability 40% brand reputation
Confidential and
41% sensitive information
44% Robustness, security and safety 35% Financial losses

Human-centred values, fairness and Biased or discriminatory

37% Authorized use of software 39% bias mitigation
30% decision making

32% Reporting 35% Trustworthy AI 24% Damage to customer or user loyalty

Building human capacity & preparing Increased business risk from

32% for labour market transition
21% IP exposure
Importance of “responsible AI” to organization
Inclusive growth, sustainable
To what extent is “responsible AI” 27% development and well-being
important to your organization? Accessible, fairly sourced and fully
24% representative datasets
28% Extremely important Providing an enabling policy
20% environment for AI
40% Very important
17% Long-term societal impact
17% Moderately important
14% Regulation and governance
14% Somewhat important
12% Fostering a digital ecosystem for AI
1% Not at all important
11% Clearly defined purpose and values

6% Robustness and reliability

The 2024 Global AI Report 20

While confidence in Views on statements
To what extent do you agree with the following statements?
AI systems is high
75%
among IT leaders at
I would always trust the answers given by AI/ML

Decisions about AI/ML in our organization are usually made by

75%, this level of trust 73% the right people

also raises questions 69%

We have sufficient guardrails (checks and balances) in place to
generally avoid negative consequences from use of AI/ML

about the possibility 66% I would agree with implementing AI that can be autonomous

of over-reliance 61%
There is sufficient governance in place to safeguard against any
misuse of AI/ML
on AI, overlooking 20%
Answers given by AI/ML always need human interpretation —

the importance of
Human in the loop and AI as an assistant
Accuracy of AI/ML answers need much improvement before I will
17%
human oversight and trust them

the limitations of
these technologies.

Underscoring the possibility that

we have too much confidence in AI,
only 20% of respondents agree that
AI outputs should always require
human interpretation or verification.

Yet only 20%

agree that AI outputs
should always require
human interpretation

75%
or verification

Of IT leaders
have confidence
in AI systems

The 2024 Global AI Report 21

Talent strategy
We see that there’s a strong
commitment among companies to
Most respondents Similarly, the vast majority of respondents
(84%, cumulatively) have formalized AI
improve their AI capabilities, and for have attempted to training in place (39%) or plan to have
most, that means either upskilling their recruit talent that has (45%) training in place by the end of this
existing talent or hiring new talent. year in order to upskill their teams.
existing AI skills.

AI/ML skill recruitment AI learning or training programs

Have you attempted Do you have a formalized
to recruit people who AI learning program
have AI/ML skills? in place?

39% Yes
(In the past 12 months)

Yes No Currently in place

45% No
85% 15%

But planning for 2024

13% No
But planning for the
future (beyond 2024)

3% No
No plans

The 2024 Global AI Report 22

There’s a clear need to When it comes to making a decision
between hiring new talent or upskilling
On the general skills front, companies
are keen on upskilling their workforce
cultivate a workforce in-house talent, we are seeing companies in creativity (50%) and critical thinking

that is technically strategically identifying skills they need

to cultivate within their current workforce
(49%), reflecting an understanding that
the successful adoption of AI requires
proficient, adaptable, and those they need to acquire through not just technical skills but also the

creative and capable new hires. This approach is driven by the

need to balance the technical prowess in
ability to think innovatively and solve
complex problems. Skills like content co-
of critical thinking. AI/ML with the innovative and adaptive creation (47%) and utilizing copilots (and
capabilities of the general workforce. assistants) for daily productivity (45%)
suggest a focus on collaboration between
For AI-specific skills, companies are
humans and AI, optimizing workflows and
focusing on upskilling their current
enhancing productivity through AI tools.
employees in roles that are foundational
to AI development and deployment, For new hires, there is a notable emphasis
such as software developers with AI on utilizing generative AI as research
expertise (44%), machine learning agents and prompt engineering, both
engineers (42%), data analysts (41%), data at 49%, which points to the growing
engineers (41%), and data governance importance of understanding and
and security specialists (40%). This leveraging generative AI capabilities
indicates a preference for building in research and development. Data
a strong internal foundation of AI quality experts (48%) are also in high
knowledge and capabilities, likely due demand, highlighting the critical role
to the specialized nature of these roles of high-quality data in AI projects.
and the importance of integrating AI
Overall, these responses suggests a
into existing systems and processes.
dual approach where companies are
Conversely, when it comes to hiring, there reinforcing their technical AI capabilities
is a slight shift in priorities. Proficiency in internally while seeking fresh talent
programming languages like R and Python for more innovative and specialized AI
tops the list at 49%, followed closely roles. At the same time, there is a clear
by the need for data scientists, data recognition of the need to cultivate a
governance and security specialists, and workforce that is not only technically
data engineers all at 46%. This suggests proficient but also adaptable, creative,
that companies are looking to bring in and capable of critical thinking, ensuring
fresh talent with up-to-date knowledge the successful integration and utilization
and possibly a new perspective on data of AI technologies in their operations.
management, security and analysis, which
are critical for innovative AI solutions.

The 2024 Global AI Report 23

Job titles and skills planned for 2024
Please indicate for each of the following job titles/skills, your plans for 2024

Upskilling our current workforce Hiring specialist talent Low importance for business needs

Top results
Software
developers with Proficiency in Automation
AI/ML expertise R or Python engineers

Software developers with

44% AI/ML expertise
49% Proficiency in R or python 16% Automation engineers

42% Machine learning engineers 46% Data scientists 15% Proficiency in R or python

Data governance and

41% Data analysts 46% security specialists
14% Data scientists

Data governance and

41% Data engineers 46% Data engineers 14% security specialists
Data governance and
40% security specialists
45% Data analysts 14% Machine learning engineers

40% Data scientists 45% Automation engineers 14% Data analysts

39% Automation engineers 45% Machine learning engineers 13% Data engineers

Software developers with Software developers with

36% Proficiency in R or python 43% AI/ML expertise
13% AI/ML expertise

The 2024 Global AI Report 24

Skills considered critical for the successful adoption of AI
Please indicate which of these skills you see as critical in your general workforce for the successful adoption of AI

Upskilling our current workforce Hiring specialist talent Low importance for business needs

Top results
Utilizing
a Data
Creativity generative AI as
labelers
research agents

Utilizing generative AI as research

50% Creativity 49% 19% Data labelers
agents (legal, marketing, etc.)

49% Critical thinking 49% Prompt engineering 18% Natural language programming

Content co-creators (sales

47% and marketing) 48% Data quality experts 17% Prompt engineering

Utilizing copilots for Copilots for platform engineering Utilizing copilots for
45% daily productivity 46% 16%
and software development daily productivity
Copilots for platform engineering
45% Data labellers 44% Natural language programming 16% and software development
Utilizing copilots for Content co-creators (sales
39% Data quality experts 39% 15%
daily productivity and marketing)
Copilots for platform engineering Content co-creators (sales
38% and software development 37% 15% Critical thinking
and marketing)

38% Natural language programming 36% Data labellers 15% Creativity

Utilizing generative AI as research Utilizing generative AI as research

38% agents (legal, marketing, etc.) 36% Critical thinking 13% agents (legal, marketing, etc.)

34% Prompt engineering 35% Creativity 13% Data-quality experts

The 2024 Global AI Report 25

Looking forward
As we have seen, the transformative The road ahead will bring challenges
journey of AI in the business landscape is that range from security concerns and
not just about technological adoption, but the complexity of AI integration to the
a comprehensive redesign of operational, pressing need for skilled personnel.
strategic and ethical dimensions. However, the potential rewards —
improved customer engagement,
As we navigate this exciting era of rapid
greater operational efficiency and
change, we believe organizations will
fast adoption of new business models
need to concentrate on two areas in
— present compelling opportunities
particular: leveraging AI for operational
for those who persevere.
excellence, and ensuring its ethical
use. The significant investments in AI, As businesses continue to harness
the broadening scope of its application the power of AI, the key to sustainable
across different business functions success lies in embracing a holistic
and the concerted efforts to close the approach to adoption that prioritizes
talent gap underscore the critical role ethical considerations, invests in talent
of AI in driving business transformation. development and fosters a culture of
But alongside these advances, the innovation. In doing so, we can ensure that
emphasis on responsible AI signifies the AI revolution moves us all forward in a
a shared recognition of the need to manner that is responsible, inclusive and
balance innovation with integrity. aligned with the broader societal good.

The key to sustainable success

lies in embracing a holistic
approach to adoption that
prioritizes ethical considerations,
invests in talent development and
fosters a culture of innovation.

The 2024 Global AI Report 26

Go further with FAIR for AWS

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The 2024 Global AI Report 27

FAIR Industrialize All of our AI solutions are purpose-
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The 2024 Global AI Report 28

About Amazon About Rackspace Technology
Web Services (AWS) Rackspace Technology is a hybrid, multicloud solutions expert. We combine our
expertise with the world’s leading technologies — across AI, applications, data and
Amazon Web Services (AWS) has more than 200 fully featured services for security — to deliver end-to-end solutions. We have a proven record of advising
compute, storage, databases, networking, analytics, machine learning, customers based on their business challenges, designing solutions that scale,
artificial intelligence (AI), Internet of Things (IoT), mobile, security, hybrid, building and managing those solutions, and optimizing returns into the future.
virtual and augmented reality and media. Rackspace Technology is an
As a global hybrid, multicloud technology services pioneer, we deliver innovative capabilities to
AWS Premier Services Partner with over 3,800 accreditations, 17 AWS
help customers build new revenue streams, increase efficiency and create incredible experiences.
competencies and 16 AWS service delivery designations. Rackspace
Named a best place to work, year after year according to Fortune, Forbes and Glassdoor,
Technology helps to asses, modernize and manage your modernization
we attract and develop world-class talent to deliver the best expertise to our customers.
projects, leveraging the industry’s most reliable infrastructure
Everything we do is wrapped in Fanatical Experience® — our obsession with customer success
with the deepest set of services. Together, we help accelerate your
that drives us to help each customer work faster, smarter and stay ahead of what’s next.
migration and modernization initiatives, resulting in faster innovation,
improved efficiencies, revenue growth, and reduced costs. Learn more at www.rackspace.com or call 1-800-961-2888.

Learn more at aws.amazon.com.

About Foundry for AI by Rackspace (FAIR)

FAIR™ is at the forefront of global AI innovation, paving the way for businesses to accelerate
the responsible adoption of AI solutions. FAIR aligns with hundreds of AI use cases
across a wide range of industries while allowing for customization through the creation
of a tailor-made AI strategy that’s applicable to your specific business needs. Capable of
deployment on any private, hybrid or hyperscale public cloud platform, FAIR solutions
empower businesses worldwide by going beyond digital transformation to unlock creativity,
unleash productivity and open the door to new areas of growth for our customers.

Learn more at: fair.rackspace.com

©
2023 Rackspace US, Inc. :: Rackspace®, Fanatical Support®, Fanatical Experience® and other Rackspace marks are either service marks
or registered service marks of Rackspace US, Inc . in the United States and other countries . All other trademarks, service marks,
images, products and brands remain the sole property of their respective holders and do not imply endorsement or sponsorship.

THE INFORMATION CONTAINED IN THIS DOCUMENT IS A GENERAL INTRODUCTION TO RACKSPACE TECHNOLOGY

SERVICES AND DOES NOT INCLUDE ANY LEGAL COMMITMENT ON THE PART OF RACKSPACE TECHNOLOGY.

Rackspace Technology cannot guarantee the accuracy of any information presented after the date of publication.

Rackspace-White-Paper-NA-Q1-2024-AIML-SOL-10313 :: March 25, 2024

The 2024 Global AI Report 29

Appendix:
methodology & audience profile
Our partner Coleman Parkes Research
conducted the global survey of 1,420
IT decision-makers at companies and
organizations in nine sectors and ten
countries during January and February
2024. Total respondents: (1,420).

Country Sector

15% USA 4% Bio-tech/life sciences

11% India 4% Pharma

11% Germany 8% Healthcare (payer/provider)

10% UK 9% Energy sector (oil & gas)

10% Australia 9% Media & entertainment

10% Colombia 12% Government/public sector

10% Mexico 12% Hospitality and travel

8% Netherlands 13% Manufacturing 47% Banking

Total:
8% Singapore 13% Retail 30% Asset management
220
7% Middle East (UAE) 15% Financial services 23% Insurance

The 2024 Global AI Report 30

Appendix:
Methodology and audience profile (continued)

Job title Responsibility Annual revenue for the last financial year

9% Chief Data Scientist 53% Key decision maker 2% Less than $5 million

9% Chief Engineer 31% Key influencer 3% Between $5 million – $24 million

8% VP/Director/Head of IT 10% Influence part of the process 5% Between $25 million – $49 million

8% CIO – Chief Information Officer 6% Part of a decision-making team 9% Between $50 million – $99 million

8% CFO – Chief Financial Officer 11% Between $100 million – $249 million
Number of employees
8% CTO – Chief Technology Officer 20% Between $250 million – $499 million
14% Less than 1,000
8% COO – Chief Operating Officer 20% Between $500 million – $999 million
25% 1,000 – 4,999
Head of Infrastructure VP/Director/
8% Head of Product
20% $1 billion – $3 billion
39% 5,000 – 9,999
7% VP/Director/Head of AI Analytics 10% $4 billion – $15 billion
22% 10,000+
VP/Director/Head of
7% Business Intelligence
Average IT budget: 8% of annual revenue
7% VP/Director/Head of AI

7% CDO – Chief Data Officer

Head of IT VP/Director/Head
6% of Engineering

1% LOB (Line of Business)

The 2024 Global AI Report 31