𝐖𝐡𝐨’𝐬 𝐑𝐞𝐚𝐥𝐥𝐲 𝐖𝐢𝐧𝐧𝐢𝐧𝐠 𝐢𝐧 𝐭𝐡𝐞 𝐂𝐥𝐨𝐮𝐝 𝐀𝐈 𝐑𝐚𝐜𝐞?

It’s easy to look at these numbers and think it’s all about volume, however, there’s a more nuanced story here. Traditional AI is still dominating the customer base across the board, and the reasons are clear: 𝐜𝐨𝐧𝐭𝐫𝐨𝐥 and 𝐭𝐫𝐚𝐧𝐬𝐩𝐚𝐫𝐞𝐧𝐜𝐲.

▫️ 𝐓𝐫𝐚𝐝𝐢𝐭𝐢𝐨𝐧𝐚𝐥 𝐀𝐈: Companies know what to expect, it’s proven, and they can exert greater control over it. Many organizations prefer this for their mission critical operations because of its 𝐩𝐫𝐞𝐝𝐢𝐜𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 and 𝐜𝐥𝐚𝐫𝐢𝐭𝐲. Microsoft and AWS clearly lead the pack here, with AWS leaning heavily towards this “safe bet.”

▫️ 𝐆𝐞𝐧𝐞𝐫𝐚𝐭𝐢𝐯𝐞 𝐀𝐈 is exciting, powerful, but also the black box that many are hesitant to jump into. You see this in the numbers: even Microsoft, with the most generative AI customers, has only 46% of its AI customer base in this space. While the potential for 𝐆𝐞𝐧𝐀𝐈 𝐢𝐬 𝐯𝐚𝐬𝐭, 𝐚𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐢𝐬 𝐬𝐭𝐢𝐥𝐥 𝐢𝐧 𝐚 𝐬𝐥𝐨𝐰 𝐫𝐚𝐦𝐩-𝐮𝐩 𝐚𝐬 𝐛𝐮𝐬𝐢𝐧𝐞𝐬𝐬𝐞𝐬 𝐭𝐫𝐲 𝐭𝐨 𝐮𝐧𝐝𝐞𝐫𝐬𝐭𝐚𝐧𝐝 𝐢𝐭𝐬 𝐛𝐫𝐨𝐚𝐝𝐞𝐫 𝐢𝐦𝐩𝐥𝐢𝐜𝐚𝐭𝐢𝐨𝐧𝐬, 𝐞𝐱𝐩𝐥𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲, 𝐫𝐞𝐥𝐢𝐚𝐛𝐢𝐥𝐢𝐭𝐲, 𝐚𝐧𝐝 𝐥𝐨𝐧𝐠-𝐭𝐞𝐫𝐦 𝐮𝐬𝐞 𝐜𝐚𝐬𝐞𝐬 𝐚𝐫𝐞 𝐬𝐭𝐢𝐥𝐥 𝐮𝐧𝐝𝐞𝐫 𝐞𝐯𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧.

▫️The message here from IoT Analytics is clear: the market is being driven by companies who are looking for more control and less black box. The more traditional AI approach is here to stay as the trustworthy choice, while generative AI remains a bit on the sidelines as businesses evaluate how to integrate it more seamlessly into their strategies.

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