Firms see data needs jump 50% as AI adoption grows

About 92% expect storage needs to rise by over half within two years.

Nearly all organisations in Hong Kong expect their data storage needs to increase by more than 50% over the next two years as artificial intelligence (AI) adoption accelerates, according to Hitachi Vantara's latest State of Data Infrastructure Report.

The report found that 75% of organisations across Greater China expect their data infrastructure to become increasingly complex, raising governance, and security challenges.

The figure was higher in Hong Kong at 88%, compared with 70% in Mainland China and 68% in Taiwan.

Hitachi Vantara also estimated that weak data foundations are limiting AI returns.

Across Greater China, 71% of respondents said shortcomings in their data infrastructure are preventing them from realising the full value of AI investments.

The company estimated this contributes to $847.05b (US$108b) in wasted AI investment globally each year.

The survey covered more than 1,200 C-level executives and IT leaders across 15 countries and regions, including 55 respondents from Hong Kong.

Octavian Tanase, chief product officer, Hitachi Vantara said organisations are placing greater emphasis on data governance as AI becomes more widely used.

"As AI becomes more embedded in business operations, leaders are realising that governance, visibility and control are just as important as performance,” he said.

He added that organisations with automated and optimised data infrastructure are moving faster, whilst others are finding it harder to manage growing complexity.

The report found that 99% of Hong Kong organisations are using, piloting or exploring AI.

Respondents also expect AI technology investment to increase by 77% over the next two years, with 75% forecasting similar growth in storage capacity and AI workforce investment.

Despite this, only 33% of Hong Kong organisations were classified as "data mature," below the global average of 41%.

The remaining 67% were identified as having emerging, fragmented or lagging data management capabilities.

Valerie Yuen, general manager, Hong Kong and Macau, Hitachi Vantara said trusted and well-managed data will be critical as AI adoption expands.

"AI succeeds when the data behind it is trusted, well-governed and resilient,” she added.

($1 = US$0.13)