Cloud Service Spending to Grow by 19 Percent in 2025
In the fourth quarter of 2024, global cloud infrastructure services spending rose by 20% to $86 billion, according to Canalys.
A new Lenovo global survey of 600 IT leaders reveals that while 79% of respondents believe AI will allow employees to focus on more impactful work, less than half feel their current digital workplace solutions adequately support productivity, engagement, and innovation. Only 36% believe their systems support employee engagement very effectively, while a staggering 89% say organizations must first overhaul their digital workplace to fully unlock AI’s potential.
The report highlights that GenAI will be a game-changer for collaboration, creativity, and productivity, outlining several key areas where AI can positively impact organizations. In the enhanced collaboration segment, AI-powered tools such as virtual co-authoring and real-time translations break down barriers, enabling seamless teamwork across geographies and languages. In the creative empowerment area, the report states that by automating repetitive tasks, AI frees employees to focus on more strategic and innovative work, driving creative problem-solving. Over the productivity boost segment, AI-driven insights streamline workflows, improve efficiency, and accelerate day-to-day operations.
Nearly half (49%) of IT leaders surveyed say that creating a productive and engaging employee experience (EX) is their top priority for the year ahead. This echoes IDC research commissioned and published by Lenovo last month – its global 2025 CIO Playbook, found that improving employee productivity is this year’s top business priority.
Despite the urgent need to transform the digital workplace around AI, several key challenges remain in its widespread adoption. One of the major challenges is the personalization gaps. While 63% of IT leaders surveyed agree that a highly personalized digital workplace is essential, a lack of configurable devices and applications remains a top barrier. This one-size-fits-all approach leaves employees underserved. Another significant challenge is the support for automation. 61% of IT leaders acknowledge the need for AI-driven IT support automation, but many organizations still struggle to integrate these systems effectively.
Entering a new era of Gen AI-powered personalization, employees need to be able to think, create, and collaborate without disruption. Today’s digital workplace needs to provide hyper-personalized settings catering to the diversity of working styles, enabling companies to make the best use of their talent while bolstering productivity. This is not just about devices and software, the IT support that employees rely on should also be tailored to their specific requirements and abilities. To fully leverage AI’s potential, Lenovo advocates embedding generative AI into core business operations as part of a broader digital workplace transformation strategy.
“Transforming your workplace is essential to using AI effectively. Simply automating existing workflows will only yield incremental benefits. AI changes the rules of productivity, but to realize its potential, IT leaders must work alongside their executive teams to rethink how AI can augment their organization’s value-creation levers and competitive differentiation,” said Rakshit Ghura, VP and General Manager of Digital Workplace Solutions at Lenovo. “AI must be seamlessly integrated into core operations, creating a personalized and efficient digital workplace that enhances the employee experience and drives long-term productivity.”
The report recommends organizations simplify and personalize the employee experience. This can be achieved by tailoring tools, workflows, and experiences to individual roles, ensuring maximum productivity and innovation. Another recommendation is to automate IT processes. It suggests businesses to use GenAI to efficiently manage devices and meet diverse employee needs, freeing up resources for higher-value tasks. Organizations should also transform workflows for value creation by rethinking existing workflows and processes to fully capitalize on GenAI’s capabilities and drive innovation.