Red Hat announced on 8 October 2024 that a new survey of 609 senior IT managers across the UK, France, Germany, Italy, Spain and the UAE has revealed a sharp pivot toward artificial intelligence in cloud strategy. The study shows that 88 % of UK respondents list preparing for AI adoption as a top priority for the next 18 months, almost matching the 89 % who cite cloud‑native application development and evolving cloud strategy as equally important. Meanwhile, 98 % of UK IT managers say they see clear advantages in adopting enterprise‑supported open‑source solutions for predictive and generative AI, with accelerated innovation and cost efficiency topping the list of benefits.
Why 88% of UK Firms Are Prioritizing AI in Cloud Strategies
The survey’s headline figure,88 % of UK firms prioritising AI, highlights a growing consensus that intelligence will drive the next wave of cloud value. Centralising cloud management (80 %) and tightening security and compliance (78 %) are seen as essential enablers, but the need to prepare for AI is now a top driver at 77 %. This shift is not merely aspirational; it reflects a concrete plan to embed AI across existing workloads and new services alike.
“Cloud technology continues to unlock significant advantages in scalability, cost efficiency and faster time to market. Yet, this adoption can also drive increased complexity, with many organisations finding themselves slowed down by internal silos, as shown in this latest survey. With the increasing prominence of AI in cloud strategies, we see from this survey that both IT managers and CTOs care about transparency when it comes to AI models: we believe that an open source approach can bring the transparency, modifiability and explainability needed for enterprise‑ready generative AI.” , Hans Roth, Senior Vice President & General Manager EMEA, Red Hat
Roth’s words underline the tension between the speed of AI development and the governance required to deploy it responsibly. In practice, UK firms are balancing the promise of AI‑driven automation with the need for clear audit trails and model explainability. The survey also shows that 96 % of IT managers flag siloed teams as a barrier to cloud adoption, a challenge that AI initiatives must navigate if they are to deliver real business impact.
The 81% Skills Gap Crisis in UK AI and Data Science
Even as AI becomes a strategic imperative, the talent landscape is lagging. The study reports that 81 % of UK respondents recognise an urgent skills gap in AI, data science, large language models (LLMs) and generative AI, up from 72 % the previous year. Cybersecurity expertise is also flagged as a pressing need, with 75 % of managers citing it, and 68 % pointing to a lack of strategic thinking to translate technology into business outcomes.
These gaps translate into concrete operational bottlenecks. Only 25 % of firms feel they have the right platforms and skill sets to fully harness AI’s potential, while 40 % report that their scalable, flexible and accessible IT platforms lack the necessary talent to deploy AI effectively. The remaining 35 % are in need of new platforms, 22 % of whom are actively seeking to acquire them.
The data suggest that without a concerted effort to upskill or recruit, the UK’s cloud‑AI trajectory may stall. Organizations that can bridge these gaps, through training, partnerships or external talent, are likely to reap the full benefits of their cloud investments.
How Enterprise Open Source AI Is Driving 53% More Innovation
Open‑source AI is emerging as a key lever for the 53 % of UK IT managers who say enterprise‑supported solutions accelerate innovation. Red Hat’s own positioning, providing a stable, vendor‑supported version of open‑source software, appears to resonate with firms that need both flexibility and enterprise assurance.
Beyond speed, cost efficiency is cited by 50 % of respondents, while 43 % value the trust and transparency that open‑source models can provide. The survey lists several specific trust factors that are almost equally important: 89 % demand transparent, modifiable models with explainable sources; 85 % want proven performance and reliability; 84 % look for model indemnification; 83 % require compliance with data privacy and security standards; 83 % want accessibility across teams; 82 % care about cost‑effectiveness; and 79 % prefer domain‑specific models over generic LLMs.
“We see a strong desire from UK businesses to innovate with cloud technologies to stay competitive, while needing to respond to cost pressures and find efficiencies. AI has the potential to help address a range of business demands, and we believe an AI‑centric future requires greater choice, flexibility and independence across clouds. This in turn requires a higher level of collaboration by design so that organisations can work across diverse tools, vendors and clouds to prepare for whatever comes next. The beauty of taking an open source approach to AI is that organisations don’t have to risk rapid innovation alone: they can navigate the unpredictability alongside 70 million contributors, and with Red Hat, the confidence that their innovation is backed by enterprise support.” , Jo Hodgson, Country manager, UK, Red Hat
Hodgson’s remarks point to a future where the breadth of the open‑source community,70 million contributors, provides a safety net for enterprises willing to experiment. The combination of community‑driven innovation and enterprise‑grade support offers a compelling proposition for firms that want to stay ahead without sacrificing reliability.
Why 98% of UK IT Managers Are Bullish on Cloud Investments
A striking 98 % of UK IT managers view cloud technology investment as a priority for 2025, reflecting a near‑universal belief that cloud remains the backbone of digital transformation. Investment strategies vary: half of respondents plan a balanced approach, allocating equal weight to new technologies and enhancements to existing systems; 26 % aim for a strong focus on innovation and new tech; and 14 % will concentrate on essential services only.
The survey also highlights the operational challenges that accompany this optimism. While 80 % prioritise centralised cloud management and 78 % focus on security, compliance and sovereignty, 96 % admit that siloed teams impede cloud adoption. Among those affected, inconsistent security and compliance across providers is cited by 54 % of firms, increased costs by 47 %, and limited control and visibility over cloud resources by 42 %. These pain points illustrate the complex trade‑offs that managers must navigate when scaling cloud and AI workloads.
Methodologically, the study surveyed 609 IT managers aged 18 and over in large businesses with 500 or more employees, ensuring at least 100 respondents from each of the six countries. Data were collected between 15 and 23 August 2024, and the research adhered to the Market Research Society’s code of conduct.
AI Convergence
The convergence of AI, open‑source innovation and cloud investment paints a picture of a UK IT landscape that is both ambitious and cautious. The near‑universal prioritisation of AI adoption and cloud investment signals a commitment to digital growth, yet the pronounced skills gap and organisational silos warn of potential bottlenecks. Enterprise‑supported open‑source solutions appear to offer a pragmatic pathway, marrying the agility of community‑driven development with the reliability required by large organisations.
For firms that can align talent development, governance, and cross‑functional collaboration, the next 18 months could deliver a significant leap in cloud‑AI capabilities. Red Hat’s role, providing a stable, supported foundation for open‑source tools, positions it as a key enabler in this transition, offering both the technical robustness and the community breadth that modern enterprises demand.
