A recent study conducted by Acxiom, a customer intelligence company, sheds light on the adoption rates of cloud and artificial intelligence (AI) technologies among businesses in the UK and the US. With only 44% of organizations reporting that they host their operations in the cloud, the findings reveal a significant lag in the anticipated migration to cloud-based solutions.
The Acxiom report, titled “The Mass Martech Modernization,” is based on responses from 200 marketing technology decision-makers—100 from the UK and 100 from the US. The data indicates that a substantial 56% of operations remain on-premise, suggesting that businesses are not transitioning to cloud technology as quickly as expected. This slower pace is largely attributed to a lack of internal expertise, identified as a major challenge by 32% of respondents. In addition, compliance with industry regulations (31%) and maintaining data security (30%) were also significant concerns highlighted by survey participants.
Firms face a multitude of barriers in their cloud journey. Among them, developing a clear cloud migration strategy was cited by 29% as a hindrance, while 27% noted challenges in securing internal resources necessary for migration. Similarly, the processes of migrating existing data and operations (27%) and managing change within the organization to facilitate user adoption (26%) complicate the transition to cloud solutions. These factors point to a cautious and complex approach toward cloud adoption.
A marketing head from a major US bank illustrates the hesitation businesses face. “We still do a lot of our campaigns through our on-prem system because there’s a lot of that that hasn’t been migrated yet. It took about two years to get legal and compliance comfortable with having personally identifiable information in the cloud. And it’s still not all up there, but at least we can now use the automated capabilities we acquired,” he explained.
In parallel with the slow migration to the cloud, the study highlights a significant underutilization of AI technologies within organizations. Remarkably, over half (53%) of surveyed companies have yet to implement AI solutions. The deficiencies stem from a lack of understanding of AI’s capabilities and the challenges surrounding its integration into existing systems.
Out of the 47% of companies that do utilize AI, only 24% apply it for advanced functions such as customer segmentation and real-time organizational analytics. The remaining 23% of businesses leverage AI for more basic functions, such as content recommendations. A noticeable geographic disparity exists wherein US businesses appear to be ahead in advanced AI utilization—28% compared to just 19% in the UK.
A Director of Marketing at a prominent UK insurance firm expressed concerns about AI adoption: “We’re not using AI anywhere in the business as yet, but it’s definitely something that we’re thinking about. We’ve some concerns around it from a governance perspective. But mainly, we are in such a world of pain trying to fix the stack that we’ve got; adding something new in just feels like now is not the time. We don’t have the technology, we don’t have the skill set internally to be able to manage it.”
The perception surrounding AI integration varies significantly between the two countries. US firms are more optimistic about the evolution of AI, believing that it will require new, AI-powered tools and an interoperable marketing technology stack. On the other hand, UK entities seem more focused on revising their current marketing technology purchasing strategies, aiming to enhance existing solutions. Nonetheless, both markets recognize a pressing necessity to bolster their teams’ AI proficiency.
A striking 48% of organizations surveyed indicated that the rise of AI technologies has prompted them to reassess their current technology stack. The report suggests that organizations collaborating with a martech service partner are more likely to have a well-defined martech strategy and to receive strong executive backing. These partnerships also facilitate greater AI utilization in marketing technologies. Acxiom’s findings reveal that 50% of partnersupported organizations leverage marketing AI in some form compared to a mere 6% among those without such partnerships.
The slower-than-expected uptake of cloud and AI technologies underscores a challenge not limited to a single sector. It reflects a broader trend of organizations grappling with the complexities involved in modernizing their operations and enhancing their technological capabilities. For businesses aiming for long-term competitiveness, prioritizing cloud adoption and AI integration will be crucial. By focusing on alleviating internal challenges—improving skills, developing effective strategies, and securing proper resources—organizations can better position themselves to leverage the full potential of these transformative technologies.
