Enterprises Are Shunning Vendors in Favor of DIY Approach To AI, UBS Says
Established software companies are struggling as many enterprises opt to create their own AI tools instead of purchasing from traditional vendors. This shift is redirecting billions of pounds towards cloud service providers while leaving conventional software companies with minimal revenue from AI products.
Key Points
- Firms are investing heavily in building customised AI solutions instead of relying on off-the-shelf products.
- Cloud platforms like Microsoft Azure and Amazon Web Services are expected to earn around £22 billion from AI services.
- Traditional software vendors have only managed to earn approximately £2 billion combined from AI product sales.
- Many enterprises find that generic AI solutions do not cater to their specific needs, making them less appealing.
- The availability of powerful AI models and significant data enables companies to build tailored solutions efficiently.
Why should I read this?
This article highlights a significant trend impacting the AI market as businesses increasingly prefer to build their own solutions rather than purchase from traditional vendors. This shift could redefine industry dynamics and presents an opportunity for cloud service providers while posing challenges for established software companies. Understanding this trend is crucial for anyone interested in the future of AI and its development in various industries.
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