The Race for AI Glory

AI has become the new corporate arms race. Every boardroom is buzzing with strategy papers, pilot projects, and promises of transformation. But here’s the quiet truth most leaders already know: you can’t win the AI race if your technology estate is still running on legacy kit.

Many organisations are still knee-deep in cloud migration and digital transformation programmes. And rightly so – this is the heavy lifting that enables everything else. AI might be the shiny prize, but cloud and digital are the foundations that make it possible.

Over the last quarter alone, Google, Meta, and Microsoft spent almost $80bn on AI infrastructure. But look closely at what that means: they’re not just spending on AI; they’re building the capacity and resilience to support it. They’re investing in the infrastructure that makes AI viable at scale. If that’s where the hyperscalers are focusing their billions, it’s a clear message for the rest of us – the groundwork still matters.

The Infrastructure Reality Check

A lot of the investment happening today in cloud and digital infrastructure isn’t really about AI at all. It’s about getting ready for it.

Moving workloads off ageing on-prem systems, rationalising data, modernising ERP and CRM stacks – it’s not glamorous work, but it’s the backbone of future value. Cloud migration isn’t about saving money anymore. It’s about enabling performance, resilience, and the ability to pivot when technology does.

As the FT reported this week, investors are already uneasy about whether today’s astronomical AI spend will deliver fast enough returns. That same scrutiny applies to enterprise IT. You can’t afford to make the same mistakes the tech giants are being punished for. Transformation isn’t about enthusiasm – it’s about execution.

Cloud done well brings scalability, resilience, and visibility. Done badly, it creates technical debt at a faster rate than most finance teams can track. There are still too many examples of lift-and-shift migrations with no optimisation, duplicated costs, and no clear ROI. If that sounds familiar, you’re not alone – but it’s time to fix it.

Cloud, Digital, and AI – The Three Steps to Real Change

Here’s the simple truth:

• Cloud Migration – enables scalability and resilience.

• Digital Transformation – enables agility and experience.

• AI Strategy and Adoption – enables insight and advantage.

Each one builds on the last. You can’t skip steps and expect AI to deliver meaningful value.

Think of AI as the Formula 1 car – powerful, expensive, and performance-driven. Cloud is the racetrack. Digital transformation is the pit crew. Without both, you’re burning rubber in a car park.

SaaS vendors are already evolving their ecosystems. Microsoft, Salesforce, ServiceNow, and others are integrating AI directly into their products. But you can only take advantage of that if you’re already in the cloud and ready to operate at digital speed. The organisations that get this right now will be the ones who extract real commercial advantage over the next 12–18 months.

The Cost of Doing It Right (and Wrong)

Cloud, digital, and AI all come with investment. There’s no free lunch here. You pay upfront in capital, and you pay over time in operational spend. The difference is whether that spend builds capability or creates dependency.

Doing it right means:

• Getting the operating model in place from day one.

• Aligning architecture, finance, and delivery.

• Making cloud a platform for innovation, not just another hosting bill.

Doing it wrong means:

• Fragmented systems.

• Uncontrolled spend.

• Endless firefighting.

The so-called “cloud backlash” we’re seeing is largely the result of poor execution, not bad technology. The failures aren’t proof that cloud doesn’t work – they’re proof that too many organisations moved without a plan. Done right, cloud delivers better resilience and often better value than any on-prem alternative.

Why Now? Because AI Changed the Equation

For years, boards delayed digital transformation because the ROI wasn’t clear enough. Competing priorities, change fatigue, risk aversion – all reasonable excuses. But AI has changed the equation. It has become the catalyst that forces action.

Without modern, connected, cloud-native systems, you can’t leverage AI meaningfully. Data locked in silos, brittle architectures, and manual workflows can’t compete with organisations who have modernised and built for scale. AI thrives on integration, automation, and accessible data. If you’re still dragging legacy systems behind you, that’s your anchor.

AI isn’t just a new capability. It’s a new dependency. Cyber resilience is the other – and together, they make inaction indefensible. The next few years will be defined by how effectively leaders can close the gap between infrastructure readiness and AI ambition.

It’s Not Too Late – But the Window Is Closing

If your business is still wrestling with migration, transformation, or defining its AI strategy – it’s not too late. But the window for half-measures is closing fast.

You don’t need to do everything at once. You need to do the right things in the right order. That starts with aligning your technology roadmap with your business strategy and building the operating model to sustain it. The prize is still there for those who get it right the first time.

At Relentica, we help organisations design and deliver this journey. From cloud migration and digital transformation to AI-ready operating models, we bring strategy, delivery, and execution together to ensure your technology creates value – not just activity.

Don’t let legacy systems define your future.