F5 Study: Enterprises Plowing Ahead with AI Deployment Despite Gaps in Data Governance and Security Concerns
F5 (NASDAQ: FFIV) released its 2024 State of AI Application Strategy Report, revealing that 75% of enterprises are adopting AI, despite 72% facing significant data quality issues and challenges in scaling data practices. The report underscores the critical role of data governance and security in successful AI deployment. Although generative AI is seen as an exciting trend, only 24% of organizations have implemented it at scale. Key hurdles include the high cost of compute (62%), model security (57%), and performance issues (55%). Additionally, 72% struggle with data quality, and 53% lack AI and data skillsets. Cybersecurity remains a principal concern, with 42% using or planning to use API security, 41% monitoring tools, 39% DDoS protection, and 38% bot protection.
- 75% of enterprises are adopting AI.
- Generative AI is highlighted as the most exciting technology trend of 2024.
- 40% of organizations have already deployed AI tools for employee productivity.
- 36% of organizations use AI for customer service and workflow automation.
- 72% of enterprises report significant data quality issues and an inability to scale data practices.
- Only 24% of organizations have implemented generative AI at scale.
- 62% cite the cost of compute as a major concern to scaling AI.
- 57% are concerned about model security, leading to a 44% expected increase in security spending.
- 55% are worried about performance across all aspects of the AI model.
- 53% of enterprises lack AI and data skillsets.
- 77% of organizations lack a single source of truth for their data.
Insights
The report from F5 highlights a significant trend in enterprise AI adoption, showcasing that 75% of enterprises are implementing AI. However, there are key challenges such as data quality issues and scaling data practices. For
However, the reported concerns around data governance and security imply that enterprises may face potential costs and delays in their AI initiatives. For F5, this means they need to not only capitalize on the demand but also ensure their products are addressing these significant pain points effectively. If F5 can prove their solutions are effective in tackling these issues, it could strengthen their market position.
From a financial perspective, investors should monitor F5's ability to innovate and offer scalable solutions that directly address the concerns highlighted in the report. The mention of
The report underscores critical technical hurdles in AI adoption, particularly around infrastructure and data layers. The fact that only 24% of organizations have implemented generative AI at scale indicates that technical challenges are substantial. This includes the cost of compute, model security and performance issues. These findings suggest that while AI technology is advancing, the infrastructure supporting it needs significant upgrading and optimization.
For F5, this represents a golden opportunity to position themselves as a leader in providing solutions that streamline AI infrastructure. By investing in and developing products that address these specific concerns—such as enhancing compute efficiency and ensuring robust security measures—F5 could significantly benefit from the ongoing AI adoption wave. The noted increase in spending on security solutions, including API security and DDoS protection, further aligns with F5’s expertise and product offerings.
Investors should look out for any technological advancements or product launches from F5 aimed at resolving these technical barriers. Technological efficacy and innovation are key to capturing market share in this rapidly evolving space.
The report highlights cybersecurity as a principal concern for enterprises adopting AI, with issues like AI-powered attacks, data privacy and data leakage among the top worries. Approximately 57% of respondents cite model security as a key concern and there's an expected
For investors, this signifies that F5's cybersecurity solutions will likely see increased demand. The ability to provide comprehensive security solutions that safeguard AI implementations can make F5 a preferred partner for enterprises looking to mitigate AI-related risks. Additionally, F5's focus on developing tools for API security and monitoring aligns well with the market's needs, offering them a competitive edge.
In the short term, success hinges on F5's ability to roll out effective security solutions promptly. In the long term, continuous innovation and enhancement of these security measures will be vital to maintaining leadership in the AI security domain.
“AI is a disruptive force, enabling companies to create innovative and unparalleled digital experiences. However, the practicalities of implementing AI are incredibly complex, and without a proper and secure approach, it can significantly heighten an organization’s risk posture,” said Kunal Anand, EVP and CTO at F5. “Our report highlights a concerning trend: many enterprises, in their eagerness to harness AI, overlook the need for a solid foundation. This oversight not only diminishes the effectiveness of their AI solutions but also exposes them to a multitude of security threats.”
As enterprises build out a new stack to support the widening array of AI-powered digital services, the study highlights challenges they face across the infrastructure, data, model, application services, and application layers that must be overcome for widespread scalable adoption.
The Promise and Reality of Generative AI
Organizations are enthusiastic about the prospects of generative AI’s business impacts. Respondents named it the most exciting technology trend of 2024. However, only
Although the use of generative AI is on the rise, the most common use cases often serve less strategic functions. The most common use cases that respondents say they’ve already deployed include copilots and other employee productivity tools (in use by
Roadblocks to Scaling AI in Infrastructure and Data Layers
As enterprise leaders examine challenges to deploying AI-based applications at scale, they cite three main concerns encountered at the infrastructure layer:
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62% cite the cost of compute as a major concern to scaling AI -
57% cite model security as a primary concern. To address this, enterprise leaders expect to spend44% more on security over the next few years as they scale deployments -
More than half of respondents (
55% ) cite performance across all aspects of the model as a concern
At the data layer, data maturity is a more immediate and potentially bigger challenge impacting the widespread implementation of AI:
-
72% of study respondents cite data quality and an inability to scale data practices as the top hurdles to scaling AI -
53% cite the lack of AI and data skillsets as a major impediment -
Although
53% of enterprises state that they have a defined data strategy in place, over77% of organizations surveyed state they lack a single source of truth for their data
Cybersecurity Remains a Key Concern and Consideration
According to the study, cybersecurity is a principal concern for those tasked with delivering AI services. Factors such as AI-powered attacks, data privacy, data leakage, and increased liability rank among the top AI security concerns.
When asked how they plan to defend against these threats to secure AI implementations (or are already doing so), respondents are focused on app services such as API security, monitoring, and DDoS and bot protection:
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42% state they are using or planning on using API security solutions to safeguard data as it traverses AI training models -
41% use or plan to use monitoring tools for visibility into AI app usage -
39% use or plan to use DDoS protection for AI models -
38% use or plan to use bot protection for AI models
The new F5 2024 State of AI Application Strategy Report can be downloaded here. Additional perspective is also provided by report co-author and F5 Distinguished Engineer Lori MacVittie in this companion blog. F5’s full 2024 State of Application Strategy Report revealing additional trends in AI, API security, multicloud networking, and more is also available via f5.com.
About F5
F5 is a multicloud application security and delivery company committed to bringing a better digital world to life. F5 partners with the world’s largest, most advanced organizations to secure every app—on premises, in the cloud, or at the edge. F5 enables businesses to continuously stay ahead of threats while delivering exceptional, secure digital experiences for their customers. For more information, go to f5.com. (NASDAQ: FFIV)
You can also follow @F5 on X (Twitter) or visit us on LinkedIn and Facebook to learn about F5, its partners, and technologies.
F5 is a trademark, service mark, or tradename of F5, Inc., in the
Source: F5, Inc.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612163492/en/
Jenna Becker
F5
(415) 857-2864
j.becker@f5.com
Holly Lancaster
WE Communications
(415) 547-7054
hluka@we-worldwide.com
Source: F5, Inc.
FAQ
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