Artificial intelligence (AI) and cloud technology are set to be the driving forces behind business growth and innovation in 2025. Together, they offer transformative potential to boost efficiency, drive innovation, and create scalable solutions. However, unlocking these benefits requires careful planning, governance, and security measures. As the new year draws nearer, now is the time for business leaders to get started.By adopting a strategic approach, business leaders can begin with manageable steps, scale swiftly, and confidently navigate the dynamic, AI-powered future ahead.AI requires immense computational power, making cloud platforms like AWS, Azure, and Google Cloud ideal for scaling AI projects. These platforms provide on-demand access to advanced resources without the need for costly hardware, enabling businesses to experiment and scale solutions as needed.But the relationship between AI and the cloud extends beyond just infrastructure. Cloud technology enables your business to experiment with AI applications, test new ideas, and expand them as needed. This flexibility allows AI to move from concept to scalable solution, growing alongside your business and its evolving needs.The combination of AI and the cloud is reshaping industries across the board. From retail to healthcare, organisations are already seeing the benefits of AI-powered cloud solutions. For example, Spotify uses AI in the cloud to personalize music recommendations for millions of users, processing vast amounts of data to create tailored experiences that enhance engagement. Meanwhile, the NHS leverages AI-powered cloud tools to predict hospital admissions and optimize resources, ultimately reducing wait times and improving patient outcomes.By integrating AI with the cloud, businesses can tackle more complex challenges, automate processes, and improve customer engagement. However, to realize this potential, businesses need to ensure they have the right foundations in place.To fully leverage AI and the cloud, its essential to set your business up for success with the right governance, security, and strategic approach. Lets break this down further.Get governance rightAI thrives on data, but without proper governance, you risk data breaches, non-compliance, or even misuse of AI outputs. Implementing clear policies and leveraging cloud tools for access control and encryption ensures that your AI remains safe and compliant.For example, Microsofts Copilot integrates with cloud-based services like Office 365 to enhance productivity. However, without adequate data governance, theres a risk of exposing sensitive company information. Establish clear policies on data access, usage, and security controls to ensure your AI operates safely and in compliance with regulations like GDPR. Aligning governance strategies to cloud platforms is key, as cloud environments offer tools for managing permissions, access control, and encryption seamlessly.Prioritise securityAs AI processes increasingly sensitive data, robust security measures in the cloud are essential. Cloud platforms are built to support evolving security needs, offering continuous monitoring and dynamic threat protection to ensure that your AI systems stay secure as they scale.Stay agileBoth AI and cloud technologies are evolving rapidly, so businesses must remain adaptable to keep up with new trends and tools. Cloud platforms enable your business to experiment with AI solutions, test applications, and adjust strategies quicklywithout the high costs and long lead times of traditional infrastructure upgrades. This flexibility allows companies to refine their AI systems in real-time, staying responsive to shifting market conditions and consumer demands.The agility provided by cloud platforms ensures that your business can innovate at pace, maintaining your competitive edge in a fast-moving digital landscape.Take smart, measured stepsThe scalability of cloud platforms also makes it easier for you to adopt AI gradually, scaling up at your own pace. AI isnt just for Christmas. So, instead of diving into large-scale AI projects from the start, you can begin with small, manageable initiatives and expand when youre confident in the value theyre creating. Cloud technology allows you to experiment without significant upfront investment, minimising risk while building a strong foundation for growth.By taking a step-by-step approach, you can ensure that their AI capabilities grow sustainably, scaling only when youre ready and avoiding the pressures of premature expansion.With governance, security, and flexibility in place, AI and cloud can now deliver on their full potential. So, whats next?The 12 Days of AIOn the First day of AI, we explore how AI is being used in marketing, the benefits and key use cases, as well as concerns and how marketerscan best take advantage of the technology.On the Second Day of AI, we look at the importance of truly understanding what AI isto enable true organisational transformation.On the Third Day of AI, we explore some of the key trends to keep an eye on, and prepare for,in 2025.On the Fourth Day of AI, we discuss the value of adopting AI responsibly, and outlines how businesses can build responsible adoptioninto their plans.On the Fifth Day of AI, we explore how AI is reshaping HR boosting productivity, addressing concerns, and preparing organisations for the future.AI and cloud technology are a natural fit, and if you leverage both your business be well-positioned for future success. The cloud not only provides the scalable infrastructure that AI needs, but it also empowers AI to deliver actionable insights that drive business growth, from automation to predictive analytics.As we enter the 2025, now is the perfect time to unwrap the full potential of AI and cloud technology. With the right strategy, this dynamic duo can help your business transform its operations, innovate efficiently, and prepare for whatever challenges lie ahead.Matt Gallagher is technical product manager at ANS, a digital transformation provider and Microsofts UK Services Partner of the Year 2024. Headquartered in Manchester, it offers public and private cloud, security, business applications, low code, and data services to thousands of customers, from enterprise to SMB and public sector organisations.