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THE EVOLUTION OF AI CLOUD COMPUTING AND THE FUTURE IT HOLDS
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e-ISSN: 2582-5208
International Research Journal of Modernization in Engineering Technology and Science
( Peer-Reviewed, Open Access, Fully Refereed International Journal )
Volume:04/Issue:02/February-2022 Impact Factor- 6.752 www.irjmets.com
THE EVOLUTION OF AI CLOUD COMPUTING AND THE FUTURE IT HOLDS
Mr. Gopala Krishna Sriram*1
*1Software Architect, EdgeSoft Corp, McKinney, TX USA.
ABSTRACT
Artificial Intelligence in Cloud Computing is a growing field that focuses on building intelligent solutions for
myriad industries. AI Cloud Computing offers Machine Learning and Statistical tools capable of performing
advanced calculations that companies can use to create dynamic applications. AI Cloud Computing focuses on
building those intelligent applications, helping companies use Big Data, deploy algorithms for advanced app
functionality, and predict and forecast future growth that tremendously helps with business profitability and
longevity. This paper explores the evolution of AI in Cloud Computing, its benefits for small and large
enterprises, the latest market trends, use cases, and future predictions.
Keywords: Cloud Computing, Artificial Intelligence, Machine Learning, Internet Of Things, Tesla, Algorithms,
Linear Regression, Logistic Regression, Automated ML, Data Management, Synthetic Data, Analytics Platform,
Smart Automation, Deep Learning, Big Data, Data Privacy, Network Etc.
I. INTRODUCTION
Artificial Intelligence has already become a permanent part of our lives. GPS tracking services, instant speech
recognition, digital assistants, chatbots, and autocorrect services are some common examples of Artificial
Intelligence at work; however, its scope is far beyond Siri or Amazon Alexa. AI paired with Cloud Computing
offers analytics solutions, Data mining and processing applications, Cloud security automation, and overall
reduced costs enhanced decision making due to AI-powered solutions. As Big Data gains momentum, there is a
growing need for integrated systems for flexibility, security, and efficiency. [1]. In the near future, AI will play a
crucial role in organizations in terms of Big Data management, customer experience, and heightened security.
This paper looks into how AI will shape the future of small and large-scale organizations through advancements
in AI technologies and the scope of those technologies.
Organization: Section two discusses the evolution of Artificial Intelligence and its rise and fall, section three
discusses the relationship between AI and Cloud Computing, section four outlines benefits of AI Cloud
Computing, section five talks about the core challenges of AI Cloud Computing, section six looks into the use
cases of AI Cloud Computing, section seven discusses AI Ethics, section eight looks into how Tesla uses AI Cloud
Computing, section nine discusses the future of AI Cloud Computing and the companies driving the change.
II. EVOLUTION OF AI IN CLOUD COMPUTING
2.1. The beginnings
Artificial Intelligence, just like many other scientific inventions, started as a fictional concept. The concept of AI
gained momentum following a plethora of philosophical and mathematical theories that saw human thinking as
the mechanical alteration of different symbols. The invention of the first digital computer (in the 1940s) led
many scientists to seriously consider the concept of an electronic brain that could possess capabilities for
enhanced data processing and mathematical calculations. The first AI research took place at Dartmouth College,
United States in the 1950s, a decade after the digital computer [2]. In 1956, AI was established as a discipline.
The participants of that research went on to become the leaders in Artificial Intelligence and were given
tremendous grants to further their research.
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Figure 1: The IBM 702 was the first computer used by AI researchers. Image: IBM archives.
The creation of the electronic brain was based on cybernetics and the early research on neural networks, and
the accumulated knowledge regarding human neural signals and their electric pathways. The framework of the
electronic brain was further based on studies by Claude Shannon (The Information Theory), Alan Turing
(Theory of Computation). Shannon's Information Theory explored digital signals, while Turing's Computation
Theory explained that all computations can be processed digitally. The research regarding neural networks
gave birth to many AI projects, including Johns Hopkins Beast and Walter's turtles. The projects were
controlled by analog circuitry without any digital metrics, including symbolic reasoning.
Figure 2: John Hopkins Beast. Image via https://frc.ri.cmu.edu/~hpm/talks/revo.slides/1960.html
Figure 3: Image via: https://www.jstor.org/stable/3559115

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As scientists like Warren McCulloch and Walter Pitts created artificial neurons in 1943, scientists like Marvin
Minsky created the first neural machine called the SNARC.
Figure 4: SNARC, the first self-learning machine. Image via: https://www.the-

scientist.com/foundations/machine--learning--1951-65792
In its early days, during the 1950s to 1970s, AI was restricted to creating game algorithms or algorithms that
would achieve small functions or tasks within a computer program. This paradigm was known as the 'reasoning
as a search'. During the 1970s, government restrictions forced AI research to halt, forcing AI scientists and
researchers into 'AI winter'.
2.2. The AI winters and the boom (the 1970s to 1990s)
The 1970s saw the first AI winter followed by scientific failures that soiled the expectations of big investors,
halting the funding for AI research. As AI took a backseat, scientists in the field continued to explore other
dimensions of the discipline, including common sense reasoning and logic programming in computing. In the
1980s, the development of Expert Solutions revived AI. Solutions like Dendral (1965, designed to identify
compounds for spectrometer reading) and MYCIN (1972, designed for diagnosing infectious blood diseases).
Expert Solutions proved to be useful, garnering the attention of investors. Hardware companies like Lisp
Machines and Symbolics. As a result, more Expert Solutions were developed to aid productivity. XCON helped
the company save around 40 million over 5 years
Figure 5: Symbolics Lisp Machine, an early Expert system. Image via: Wikipedia.
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By 1987, AI started to fall into its second AI winter as dozens of companies failed to deliver viable AI solutions,
lessening the demand for AI and eventually losing the financial support from investors and hardware/software
companies.
Additionally, the Expert Solutions were proving to be too expensive; however, even without the wide-ranging
commercial solutions, the AI field continued to progress behind closed doors.
2.3. AI in Cloud Computing (Deep Learning and Big Data analytics: 1993 - present)
By 2011, AI revived again, primarily due to the enhanced computing power that supported its applications In
1997, Deep Blue became the first computer AI chess to beat the World Champion, Garry Kasparov.
The Deep Blue was reportedly 10 million times faster than Ferranti Mark 1. A Mckinsey report 'Big Data, The
Next Frontier for Innovation, competition, and productivity' states that "By 2009, all sectors in the US had at
least 200 terabytes of stored data" [5].
Figure 6: Ferranti Mark 1, the world's first general-purpose digital computer. Image
via Cheese programming.org
The 2000s proved to be the age of AI as the computing power and resources increased further. By 2016, the
market value for AI-based products had reached 8 billion, and AI applications like deep learning and Machine
Learning progressed, giving birth to enhanced image processing, speech recognition, text analysis, and Big Data
processing. [4]
The following timeline shows the evolution of AI.

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III. THE RELATIONSHIP BETWEEN CLOUD COMPUTING AND
ARTIFICIAL INTELLIGENCE
Cloud Computing offers advanced computing resources through the internet to help companies increase
productivity and data processing capabilities. AI is the means to use those resources to enhance capabilities. AI
Cloud Computing seamlessly merges ML functionalities with advanced cloud-based computing environments.
This merger has brought us technologies like Google Home, a smart thermostat, and the ability to listen to our
favorite song via voice command. AI Cloud Computing systems are capable of more flexibility and efficiency for
strategic insights. For example, SAAS developers can use AI tools to offer better flexibility to their users. The AI
tool (Einstein) by SalesForce, captures customer data to understand customers' interaction with the website
and therefore helps the company build better customer relationships [6].
IV. BENEFITS OF AI IN CLOUD COMPUTING
According to Statista, the Global AI market in 2021 was at 327.5bn USD, with IBM as the biggest patent holder.
The startup funding in AI projects worldwide is at 20bn USD. The global AI software market is expected to grow
to around 126 billion USD by 2025 [7]. By looking at these statistics, it is hard to deny that AI is and will
continue to be a growing force within IT and other business sectors that rely on AI for smart business solutions.
Generally, AI helps with automation that reduces the human workload for daily mundane tasks. AI paired with
Cloud Computing offers an enhanced capability for storing and processing data while Machine Learning tools
constantly learn and improve operational efficiency. With tools like IBM Watson, Microsoft Azure, and Google
Cloud AI, small and large companies have a plethora of enhanced functionalities to upgrade their systems for
better productivity. The following sections outline the benefits of AI in Cloud Computing and how they improve
overall organizational performance for better productivity and revenue.
4.1. Reduced overall costs
Many researches have established the cost benefits of AI in the Health sector [8, 9]. In other sectors, the
significant expense a business has to bear is the upfront costs like maintaining on-site data centers. AI-based
Cloud projects eliminate those costs. The on-site data centers are not only hard to manage in terms of
workloads but may also pose myriad security risks that can lead to significant data loss. With AI Cloud
Computing, companies can access AI-powered tools at a monthly cost, which not only enhances overall
productivity and security but also enables companies to derive valuable insights through AI-powered data
analytics. With AI Cloud Computing or IAAS platforms, companies can use the advanced functionality of both AI
and Cloud Computing without paying any hefty costs that come with traditional data centers and technology.
Forbes reports that AI can help companies build better customer satisfaction through predictive AI [10].
4.2. Smart automation and improved productivity
AI can perform complex data processing and analysis tasks without any human intervention, which reduces the
workload on employees so they can use their manpower on more strategic tasks. In addition, with AI teams can
strategize operational workflow through automation. IBM Cloud Pak is one of the examples of prebuilt AI-
powered automated workflows [11]. Smart automation for repetitive and complex computation tasks helps
organizations save time and money in the long run.
4.3. Big Data management and analytics
Big Data analytics refers to methods and models applied to large unstructured data to draw insights [12].The
biggest advantage of AI Cloud Computing is its ability to help small and large-scale companies streamline Big
Data management without breaking the bank. Paired with Edge Computing, AI Cloud Computing helps
companies develop advanced solutions that readily respond to customer requests while analyzing huge data
flows that hide valuable business insights. Tesla is a great example of AI Cloud Computing in action. The coming
sections will discuss Tesla and its use of AI Cloud Computing.
V. CHALLENGES OF AI CLOUD COMPUTING
5.1. Network connectivity
Cloud-based Machine Learning applications require consistent network connectivity sLack of connectivity can
seriously hinder the processes that run on ML algorithms. Additionally, it takes time for the data to reach the
cloud where it can be further processed. There is a huge time lag between sending data to the cloud, which
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impacts prompt response and quick actions necessary for resolution.
5.2. Data privacy
Another important challenge with AI Cloud Computing is data privacy. Is data privacy. The information
collected through AI sensors captures both customer and vendor data before it is transferred and processed.
Lack of security protocols in both web and mobile Cloud Computing can lead to data hacks that may lead to
further security issues. [13]
VI. USE CASES OF AI IN CLOUD COMPUTING
AI Cloud Computing offers tremendous opportunities to both small and large companies who are looking to
scale. We have identified the following use cases of AI Cloud Computing from online sources and research
papers.
6.1. Analytics platform
AI Cloud Computing merges the functionalities of AI applications and highly advanced environments of Cloud
Computing to help companies build dynamic applications in any sector. AI Cloud Computing offers real-time
analytics to help companies identify problems and solve them in a timely fashion for increased productivity and
unhindered growth.
Additionally, AI Cloud Computing facilitates image recognition and visual analytics that help companies drive
meaningful insights from videos and images.
6.2. Automated ML
Automated ML enables optimized machine learning models to accelerate deep learning and help make the
processes faster. Automated ML regulates a lot of routine tasks helping data scientists focus their energies on
more strategic workloads [14].
6.3. Data management and monitoring
Data visualization enables companies to visualize Big Data with comprehensive dashboards that make the
analytics task easy.
Data integration allows companies to gather and combine unstructured data from different sources to come
together for processing. The integration practice ensures all the data has been considered for analysis to draw
meaningful insights. Data integration combines data into a workable format that is easy to process for analytics.
Data cleaning and validation platforms help organizations clean data centers to ensure that only relevant and
most important data remains. This gives data scientists access to the most accurate data for analytics,
eliminating any data hurdles that may jeopardize the analytics process or consume precious time.
6.4. App Dev
With App Dev, companies can utilize advanced app development platforms for specific business needs. For
most small-scale app development companies, it is not possible to pay hefty money for independent app
development platforms. With AI Cloud Computing, small companies can get access to smart tools for
accelerated app development with a monthly premium.
6.5. Synthetic data
AI is capable of producing synthetic data for certain operations (trained on actual data). This data can be used
to predict conditions that may hinder progress and develop solutions to counter those conditions [15].
Following are some of the AI algorithms (supervised and unsupervised) and their sample business use cases.
6.6 AI Algorithms and their use cases
6.6.1 How does an AI algorithm work?
Algorithms are codes trained to perform certain cognitive functions including prediction interpretation and
reasoning. Unsupervised algorithms learn patterns without any training or from untagged data. Supervised
algorithms learn patterns from labeled training data.
Self-learning AI algorithms training and learning to perform cognitive functions based on predetermined
conditions.
Tesla Vehicles use unsupervised algorithms.
Supervised and unsupervised algorithms are designed to adapt to their environment and learn from their new
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experiences.
6.6.2 How are AI algorithms trained?
Step 1: Data scientists add labels to the input data and define the put variable.
Step 2: The algorithm is trained to find connections between the input and the output.
Step 3 The algorithm is applied to new data where it finds patterns in the information iDE to define output
variables.
6.6.3 Supervised algorithms and their use cases
Linear regression
This is the standard algorithm for modeling the connection between independent input variables and
dependent output variables. Defining this relationship results in an infinite number of future values for output
variables.
Linear regression can help you understand sales drivers that can impact revenue. This can include
understanding pricing and competition in general.
Logistic regression
This is an extension of the above-mentioned linear regression algorithm for the classification tasks.In this
regression algorithm output variable is binary meaning it is either one or two rather than continuous meaning
and an infinite list of numbers. This can help you predict whether a skin lesion is malignant based on its various
characteristics.
Linear quadratic discriminant analysis
This algorithm upgrades the Logistic regression algorithm to solve nonlinear problems in an event when
variables fail to produce equal changes in the output variables. This analysis can help you protect the churn rate
and the likelihood of a lead closing.
Decision tree
This is the regression or classification model that separates features from different branches with decision
nodes. Each new feature has a unique color and a new branch until the final decision is made.
This can:
- Help you make decision frameworks for recruiting new employees.
- Understand different product attributes and analyze the ones that are seen most profitable.
Naive Bayes
This is a classification technique stone base theorem. With this technique productivity of a certain event can be
accurately measured based on factors that directly affect that event. For example, emails that contain the word
money are likely to be spam.
This technique analyzes customers' perceptions about a certain product in the market or builds classifiers that
would filter spam.
Support vector machine
This is usually utilized for classification purposes that can be transformed for regression analysis or tasks. It
can help you solve nonlinear problems. Companies can use it to predict the likelihood of customers clicking a
certain ad.
Random Forest
Random forest is a classification and regression model that readily improves the accuracy of a decision tree
creating multiple decision trees that reach a majority vote. You can use it to forecast the power usage in an
electrical grid.
Adaboost
This is another regression and classification technique that uses multiple models to reach a decision by
considering the accuracy of the models in predicting the right outcome. Companies can use it to detect credit
card fraud.

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Gradient boosting trees
This is yet another regression and classification model that generates decision trees in a sequence to improve
the errors from the previous tree models. This helps you generate the final result based on all the previous
trees forecast. Companies can use this algorithm to predict the accurate prices of cars based on characteristics
like mileage and age.
6.6.4 Unsupervised algorithms and their use cases
K means clustering
This algorithm places data into groups that share similar features or characteristics.
You can use this algorithm to separate different customers into groups based on their similar characteristics.
For example, customers between the ages of 18 and 25 can be placed in a similar group for specific marketing
efforts.
Gaussian mixture model
This is a generalized type of K-means clustering that enables data scientists to choose flexible shapes and sizes
for the group clusters. With this technique, you can divide customers into segmented groups based on less-
distinct characteristics.
Hierarchical clustering
This clustering technique allows data scientists to separate clusters along a hierarchical tree to create a
classification model for easy analysis. Use this technique to segment one group into another micro segment.
Recommender system
This system utilizes cluster behavior to identify the necessary data for making predictions. Companies can use
this system to recommend books and articles to readers based on what they are currently reading.
VII. AI ETHICS COMPANIES NEED TO FOLLOW
As noted above, AI Cloud Computing offers a plethora of benefits to small and large-scale enterprises. However,
it’s not that simple to implement AI projects. Data scientists and AI specialists need to comply with AI ethics
and principles to ensure a safe and reliable AI development that does not threaten humans in any way. Google
AI identifies the following ethics and principles for AI development:
AI:
- must be socially beneficial and must serve a purpose
- must not create or reinforce unfair bias
- must be designed and tested for safety
- must be accountable to the humans
- must include privacy design principles
- uphold the utmost scientific excellence
- must be designed for users who comply with these ethics [16].
Since May 2019, 42 countries have agreed to the Organization for Economic Cooperation and Development’s
Ethical AI Principles that govern the development and deployment of AI [17].
VIII. TESLA AND THE AI CLOUD COMPUTING
Tesla is the most important example of AI Cloud Computing. And we say it is important because this electronic
car manufacturer, led by Elon Musk, is at the forefront of implementing AI to create tremendous value for
humans. If successful, Tesla would achieve the level 5 autonomous vehicle which means that it would be able to
offer fully self-driving vehicles capable of assisting drivers in rush hours, predicting upcoming accidents, and
ensuring driver/passenger safety at all times. As of today, according to Forbes, Tesla has only reached Level 2
autonomous while Elon Musk claims that all Tesla vehicles are capable of level 5 Autonomous and will soon
launch the functionality.
8.1. How Tesla uses AI Cloud Computing
All Tesla vehicles, whether they are on autopilot or not, use AI sensors that transfer data about the vehicle's
health and driver's behavior to the cloud where it is analyzed for anomalies and disruptions. It is because of

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these sensors that Tesla was able to recognize overheating issues in the engine components in 2014 and repair
it automatically by a software patch. Additionally, the data collected from these sensors is used to create data-
dense maps that indicate hazardous locations and traffic speed.
Machine learning algorithms in the cloud take care of educating an entire fleet, while at an individual car level,
edge computing plays a key role in sending and receiving requests. Tesla uses custom AI chips, as shown below,
for machine learning.
Image via Tesla.com
Image via Tesla.com

Tesla’s AI-driven technology is created in partnership with hardware manufacturer Nvidia that claims that the
vehicles do not contain any self-driving components instead the unsupervised ML algorithms learn through
driver behavior [18, 19].
IX. FUTURE DEVELOPMENTS AND TRENDS REGARDING AI
IN CLOUD COMPUTING
AI is in its booming era. It is thriving and providing enhanced solutions to companies for smart applications that
are changing lives and helping the economy. Based on our research, we can safely say that in the future AI
sensors would be smart enough to process even more complex data enabling dynamic applications that were
once a part of science fiction. For example, AI sensors in Tesla vehicles would be able to communicate with
other manufacturer cars, mobile phones, and even traffic signals. AI Cloud Computing will continue to create
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ML algorithms and models to further improve efficiency in different sectors that rely on AI applications. And
last, but not least, AI Cloud Computing will empower the upcoming Metaverse age where we will interact with
each other via the internet in real-time.
There’s plenty of going on in Silicon Valley in terms of new AI-related projects some of which (according to
Forbes) include Abnormal Security, AMP Robotics, Arize AI, Atomwise, Bearing, Canvas, Clari, Cresta, Crowd AI,
Datbricks, Dataiku, DataRobot, Deepgram, DeepMap, Domino Data Lab, Duolingo, Ezra, Falkonry, Farmwise
labs, and Forethought, to mention a few. These AI startups are utilizing the power of AI Cloud Computing to
create applications for every sector, promising economic growth through reliable AI technologies [20].
X. CONCLUSION
Artificial Intelligence has been nothing but a miracle for humanity. From its inception to its current growth, AI
applications have aided humanity in building better applications that predict, measure, and help us solve
critical and complex problems. With AI Cloud Computing, the scope of those applications have expanded to
offer even more flexibility and agility required for long-term growth in any sector. For data scientists, it is
important to know the history of AI, its current use cases, and its ethical principles before they can create and
deploy highly-intelligent ML models capable of performing complex tasks. Without a keen understanding of AI
and its inception, it is impossible to look at the bigger picture that essentially helps us comprehend the
sensitive issues that may arise due to AI. In this paper, we looked at AI in its beginning days, its application
today, and how it may evolve in the future. Given that data scientists can comply with ethical AI standards, we
will have a plethora of AI applications ready to help us shape a better world in no time.
XI. REFERENCES
[1] Klein S. IoT solutions in Microsoft’s azure IoT suite. Berkeley: Apress; 2017. The world of big data and
IoT; pp. 3–13.
[2] Kaplan, Andreas; Haenlein, Michael (2019). "Siri, Siri, in my hand: Who's the fairest in the land? On the
interpretations, illustrations, and implications of artificial intelligence". Business Horizons. 62: 15–25.
[3] Cagnova. (n.d.). JRC Publications Repository. Retrieved January 29, 2022, from
https://publications.jrc.ec.europa.eu/repository/handle/JRC120469
[4] The history of Artificial Intelligence. Science in the News. (2020, April 23). Retrieved January 29, 2022,
from https://sitn.hms.harvard.edu/flash/2017/history-artificial-intelligence/
[5] Manyika, J., Chui, M., Brown, B., Bughin, J., Dobbs, R., Roxburgh, C., & Byers, A. H. (2020, February
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frontier-for-innovation
[6] Einstein: Artificial Intelligence in Business Technology. Salesforce.com. (n.d.). Retrieved January 29,
2022, from https://www.salesforce.com/ca/products/einstein/overview/
[7] Liu, S. (2022, January 18). Ai market size 2018-2025. Statista. Retrieved January 29, 2022, from
https://www.statista.com/statistics/607716/worldwide-artificial-intelligence-market-revenues/
[8] Schwendicke, F., Rossi, J. G., Göstemeyer, G., Elhennawy, K., Cantu, A. G., Gaudin, R., Chaurasia, A.,
Gehrung, S., & Krois, J. (2020). Cost-effectiveness of artificial intelligence for proximal caries
detection. Journal of Dental Research, 100(4), 369–376. https://doi.org/10.1177/0022034520972335
[9] Dismuke, C. (2020). Progress in examining cost-effectiveness of AI in diabetic retinopathy screening.
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[11] IBM Cloud paks. IBM. (n.d.). Retrieved January 29, 2022, from https://www.ibm.com/cloud/paks
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Proceedings of the VLDB Endowment. 2012;5(12):2032–2033. doi: 10.14778/2367502.2367572.
[13] Yao, D. (D. (2017). Cloud Data Analytics for Security. Proceedings of the Fifth ACM International
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intelligence-companies/?sh=11b841b277cf

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THE EVOLUTION OF AI CLOUD COMPUTING AND THE FUTURE IT HOLDS

Article · February 2022

Gopala Krishna Sriram

Cloud Compute View project

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