Cloud maturity lags as AI demand outpaces investment

NTT DATA has published a global study finding that only 14% of organisations have reached the highest level of cloud maturity, highlighting a gap between rising AI demand and current cloud investment.

Based on responses from more than 2,300 senior decision-makers across 33 countries, the report found that 99% of organisations believe AI is increasing demand for cloud, while 88% said current investment levels are putting AI, cloud-native and modernisation initiatives at risk.

The findings suggest many companies are still struggling to turn years of cloud adoption into broader business change. Fewer than half of respondents were satisfied with cloud's role in driving innovation or with progress on modernisation.

Legacy systems remain a major obstacle. Half of those surveyed said legacy applications and data platforms are holding back innovation, making modernisation the top cloud priority over the next two years.

The study suggests the divide is widening between companies with more advanced cloud adoption and those further behind. Among organisations classified as "cloud evolved", 47% said they used AI in their most recent cloud migration project, compared with 35% of all other respondents.

Security was the leading area for spending, though confidence levels varied sharply. Among cloud leaders, 68% said they were highly confident in their cloud security posture, compared with 36% of other organisations.

Investment gap

The research comes as companies reassess how cloud fits into AI strategies. Rather than serving only as back-end infrastructure, cloud is increasingly seen as the environment where AI workloads are deployed, managed and scaled.

That shift is shaping investment decisions across public, private, hybrid and sovereign cloud models. Nearly all respondents said they expect private cloud growth, while sovereign cloud adoption is projected to rise by 50% over the next two years.

Cost and complexity are also influencing decisions. More than half of respondents cited challenges in managing cloud costs, and the report projects a threefold increase in fully managed cloud platforms as organisations seek simpler operating models.

NTT DATA argues that cloud and AI strategies now need to be developed together. Chief AI Officers were 22% more likely than Chief Information Officers and Chief Technology Officers to say AI increases the need for cloud investment.

Charlie Li, President and Global Head of Cloud and Security at NTT DATA, said AI is advancing faster than enterprise cloud maturity.

"Cloud has moved well beyond infrastructure and is now the execution layer for AI. Organisations that fail to evolve their cloud foundations risk constraining the growth and value of their AI investments. Our clients who are succeeding are treating cloud as a value creator, not a technology initiative," Li said.

Modernisation focus

The survey included respondents from technology, manufacturing, banking, financial services, healthcare and consumer sectors, suggesting these issues are not confined to one part of the economy. Across industries, many organisations face pressure to support AI ambitions while still carrying older systems and fragmented data estates.

This is also reflected in how performance is measured. Companies are still moving unevenly from technical cloud metrics to business-focused measures of value, despite AI's growing role in cloud migration and transformation.

The report presents this as a broader management challenge rather than a narrow technology issue. Decisions on architecture, governance, security and operating models now directly affect how quickly businesses can move AI projects into production.

It also highlights the importance of basic controls. Organisations with stronger cloud maturity were more likely to define clear roles and responsibilities and back them with regular audits.

For large enterprises, the message is that cloud adoption alone no longer signals progress. What matters is whether cloud environments are modernised, secure and aligned with AI priorities at a pace that matches business expectations.

The study was based on responses from C-suite executives, senior executives and other senior staff at enterprises across multiple industries.