A Forrester Consulting Thought Leadership Study Commissioned By LTIMindtree, July 2025
As organizations race to adopt AI and unlock its transformative potential, many decision-makers find their organizations at an inflection point where ambition outpaces operational readiness. Implementing AI innovation at scale demands a closer look at infrastructure modernization across capacity needs and cloud agility to support evolving workloads and the growing complexity of integrating diverse data and technologies. As AI workloads scale and grow in complexity, it is increasingly critical for organizations to ensure that their infrastructure can stay abreast with the evolving demands of this emerging technology.
In March 2025, LTIMindtree commissioned Forrester Consulting to evaluate organizations’ AI infrastructure needs, gaps, and challenges to help enterprise leaders future-proof their cloud and IT architecture for AI. Forrester conducted an online survey with 576 respondents across North America, Europe, and the Nordics with responsibility over their organization’s AI and cloud infrastructure strategy to explore this topic. We found that organizations face significant challenges in scaling AI that range from complex cloud environments and key AI infrastructure limitations across compute, storage, network and data, to a persistent trust barrier. Organizations must reassess their AI and infrastructure strategy to enable scalable, cost-effective, responsible, and impactful AI deployment.
Consulting Team:
Alicia Choo, Market Impact Consultant
Xin Tao, Market Impact Consultant
Aneesh Ahuja, Market Impact Consultant
Contributing Research:
Forrester’s Technology research group
Enterprises are rapidly accelerating AI adoption to transform their business strategies. Yet, many face critical gaps in their foundational infrastructure capabilities, making it crucial to address these challenges to fully unlock AI’s value.
Through our interviews with decision-makers at enterprises to understand their current AI and cloud infrastructure strategy, we found that:
Decision-makers are confident in their organization’s AI strategies, with 89% of them affirming that their organization has defined AI-driven outcomes, KPIs, and ROI goals. While agentic AI has been generating significant interest, its full scale deployment is still in the early stages (27%). Almost one in two organizations are focusing on data management (45%) and operational use cases such as observability models (41%) to drive tangible business results.
Base: 576 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing sum of responses who ranked these drivers within their organization’s top five drivers.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Click to see data by AI adoption stage
Base: 276 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing responses for “Strong support”.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Base: 300 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing responses for “Strong support”.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Hybrid cloud preferences are coming to the forefront to balance infrastructure needs. To meet growing AI workload demands, organizations are under pressure to modernize their infrastructure across compute, network, storage, and data management. With respect to cloud deployment, enterprises recognize that public cloud environments offer the necessary scalability and elasticity, especially for peak AI model training cycles and proof-of-concept (PoC) experimentation. This helps to avoid costly over-provisioning of on-premises infrastructure. On-premises and private cloud environments on the other hand, are optimized for data sensitivity, latency needs, and critical inferencing workloads for proximity and control. While IT leaders recognize these attributes due to the diversity in maturity and use cases, enterprises are adopting a hybrid cloud environment to strike the right balance between performance, scalability, and flexibility. As organizations progress in their AI maturity, many are also adopting AI platform-as-a-service (PaaS) models to reduce the operational burden of managing complex tooling and infrastructure.
Within these cloud architectures, most continue to rely heavily on CPUs (85%) and parallel-processing GPUs (82%) as their compute instances, with GPUs being well-suited for training workloads. However, as AI initiatives mature and shift toward inferencing applications, there is a growing need to adopt specialized processors like data processing units (DPU) (19%), tensor processing units (TPU) (31%), and field programmable gate arrays (FPGA) (21%) that better support real-time and edge inference.
Base: 576 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing sum of responses for “Mostly realized” and “Fully realized”
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Organizations are realizing that scaling AI hinges on trust, readiness, and the ability to operationalize it across complex environments. Technical limitations, regulatory complexities, and internal capability gaps are no longer distant concerns but immediate obstacles to scaling AI successfully. To move beyond experimentation to realizing enterprise-wide impact, decision-makers must address these structural and organizational hurdles head on:
Base: 576 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing top five sum of responses who ranked these challenges as part of their organization’s top five challenges.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Click to see data by Company size
Base: 308 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing top five responses with total sum of % ranked.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Base: 172 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing top five responses with total sum of % ranked.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Base: 96 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing top five responses with total sum of % ranked.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
In response to mounting challenges of optimizing and orchestrating compute, storage, and networking resources, organizations are ramping up investments in their infrastructure. The future of AI rests on the ability to drive performance through more flexible, scalable, and secure architectures — motivating many enterprises to increase AI-related spending in the next 12 months. In addition, executives are turning to trusted third parties to accelerate AI maturity by supporting technical priorities and providing strategic guidance. These partnerships play a critical role in future-proofing AI initiatives:
While organizations are making great strides in prioritizing AI architecture to address core technology challenges, AI governance — particularly around policy and ethics — remains a blind spot. We observe that there is clear alignment between AI plans and infrastructure pain points. Driven by concerns around data privacy and security (52%), 75% of decision-makers report having implemented technologies such as identity and access management (IAM), role-based access control (RBAC), model security, and supply chain security, among which 60% note that their organization continues to expand AI security capabilities. Similarly, 70% of decision-makers say their organization is tackling obstacles in data silos (54%) and compliance (53%) through AI data management, and 43% are looking to increase their organization’s efforts in data integration, preparation, analytics, and visualization.
However, when it comes to AI policy and ethics, organizations seem to be falling behind. Despite acknowledging the gap in their strategic frameworks, less than 34% say their organization has implemented AI governance practices, and only 16% plan to expand them. This disconnect suggests that governance — especially those around policy management and ethical AI — remains an area for improvement, highlighting potential risk that could undermine progress across data and AI efforts, especially as these domains converge. Forrester’s research predicts that 40% of highly regulated companies will combine their data and AI governance programs, which will require talent and investment in access control, policy management, quality control, and risk mitigation.5 Successful enterprises will soon realize the importance of building a cohesive framework that governs AI and data together.
AI spending is surging, with genAI leading the charge. A key reflection of organizations’ commitment to their AI roadmap is their growing budget allocation. More than 70% of decision-makers expect that their organization will increase their spending on AI technologies, with genAI on top of the list: 86% anticipate higher investment, and 45% expect a notable increase of more than 10%. There is also strong momentum in spending on AI compute, with 78% noting their plans on budget increases and 39% projecting growth of over 10% (see Figure 6).
Investment in predictive AI is also on the rise (74%), though it appears to be falling slightly behind generative AI (genAI). Forrester anticipates predictive AI to remain in the spotlight, especially as organizations encounter roadblocks in optimizing genAI outcomes. Proven use cases such as predictive maintenance, customer personalization, supply chain optimization, and demand forecasting are still expected to draw significant investment. Forward-looking enterprises should recognize that predictive AI and genAI are not mutually exclusive. In fact, predictive capabilities can enhance genAI outputs, leading to more use cases that integrate both technologies.6
Click to see data by Region
Base: 234 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing responses that indicated an increase in spending.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Base: 234 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing responses that indicated an increase in spending.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Base: 231 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing responses that indicated an increase in spending.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
Base: 111 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Note: Showing responses that indicated an increase in spending.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
With the uprising of genAI, GPUs are becoming the top priority for executives, and demands for other specialized chipsets are also expected to grow. Rapid adoption of genAI has made GPUs a top priority (97%) for future AI growth, with specialized processors slowly gaining attention. This shift highlights the urgent need for a more secure and flexible architecture to support evolving AI workloads (see Figure 7).
While CPUs and GPUs remain the most mature and widely adopted technologies that dominate both current usage and future plans, specialized chipsets such as TPUs, application-specific integrated circuits (ASICs), FPGAs, and DPUs are also on the rise, particularly as organizations become more reliant on inferencing workloads. Take DPUs for example, 32% of decision-makers already rate their adoption as a high or critical priority, even though only 19% have deployed them at this stage. While DPU adoption is currently constrained by cost, complexity, and vendor capabilities, they are playing an increasingly important role as AI workloads shift from training to inferencing. Specifically, DPUs are optimized for data movement, infrastructure management, energy-efficiency, security, and cost-effectiveness, causing major hyperscalers to accelerate their development of homegrown DPUs.
Click to see data by Timeframe
Base: 576 decision-makers with responsibility over their organization’s AI and cloud infrastructure strategy
Showing sum of responses for “High priority” and ”Critical priority”.
Source: Forrester’s Q2 2025 AI Infrastructure Survey [E-63587]
While AI adoption is accelerating, the success of organizations’ AI initiatives hinges on the ability to scale and sustain AI across increasingly complex environments. To realize the transformative potential of AI, organizations must first address foundational infrastructure challenges limiting its scale.
Forrester’s in-depth survey of 576 decision-makers about their organization’s AI and cloud infrastructure strategy yielded several important recommendations:
In this study, Forrester conducted an online survey of 576 IT and business decision-makers of AI and cloud infrastructure strategy in North America, Europe, and the Nordics to evaluate their organizations’ AI infrastructure readiness for AI initiatives. Survey participants included decision-makers who are C-level executives, vice presidents, directors, and senior managers. Questions provided to the participants asked about their organizations’ AI infrastructure, challenges, and future plans. Respondents were offered a small incentive as a thank you for time spent on the survey. The study began in April 2025 and was completed in May 2025.
North America | 41% |
Europe | 40% |
Nordics | 19% |
2,500 to 4,999 | 53% |
5,000 to 19,999 | 30% |
20,000 or more | 17% |
$2B to just under $3B | 46% |
$3B to just under $4B | 27% |
$4B to just under $5B | 18% |
More than $5B | 8% |
Banking, financial services, and/or insurance | 9% |
Business or professional services | 9% |
Construction | 9% |
Energy and utilities | 9% |
Life sciences and healthcare | 9% |
Manufacturing | 9% |
Media and entertainment | 9% |
Retail and consumer goods | 9% |
Technology and/or technology services | 12% |
Transportation and logistics | 9% |
Travel and hospitality | 9% |
C-level | 25% |
Vice president | 36% |
Director/senior manager | 39% |
Business strategy and operations | 31% |
Data science and analytics/AI center of excellence | 19% |
Digital strategy/transformation/innovation | 15% |
IT | 16% |
Final decision-maker | 52% |
Part of a team making decisions | 26% |
Influence decisions | 23% |
Final decision-maker | 51% |
Part of a team making decisions | 30% |
Influence decisions | 19% |
Experimentation stage | 48% |
Production stage | 52% |
Note: Percentages may not total 100 due to rounding
1 Source: Data Lakehouse Is The New Data Warehouse And Data Lake, Forrester Research, Inc., August 31, 2023.
2 Source: Build Stakeholder Trust In Artificial Intelligence, Forrester Research, Inc., August 12, 2022.
3 Source: Top Emerging Tech Overview: Explainable Artificial Intelligence, Forrester Research, Inc., October 28, 2022.
4 Source: The AI Infrastructure Solutions Landscape, Q4 2023, Forrester Research, Inc., December 12, 2023.
5 Source: Predictions 2025: Artificial Intelligence, Forrester Research, Inc., September 9, 2024.
6 Source: Predictions 2025: Artificial Intelligence, Forrester Research, Inc., September 9, 2024.
7 Source: Architecting Your Infrastructure For AI, Forrester Research, Inc., December 11, 2023.
8 Source: Build Stakeholder Trust In Artificial Intelligence, Forrester Research, Inc., August 12, 2022.
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