Enterprises Are Shunning Vendors in Favor of DIY Approach To AI, UBS Says
According to UBS, many enterprises are turning away from established software vendors in favour of a do-it-yourself (DIY) approach to artificial intelligence (AI) solutions. This trend is resulting in a significant shift of spending towards cloud service providers, making it challenging for traditional vendors to keep up.
Key Points
- Established software vendors are struggling to capture market share as enterprises opt for DIY AI solutions.
- Cloud platforms like Microsoft Azure and Amazon Web Services are experiencing substantial revenue growth from AI services, totalling an estimated $22 billion.
- Many companies find off-the-shelf AI products too generic or expensive, prompting a preference for bespoke solutions built in-house.
- Key factors driving this trend include access to powerful AI models, cloud computing resources, and proprietary company data.
- Without Microsoft’s popular Copilot tools, the total revenue from AI products sold by other vendors drops significantly to around $450 million.
Why should I read this?
This article sheds light on a significant shift in how businesses approach AI technology, highlighting the increasing inclination towards DIY solutions. Understanding this trend is crucial for professionals in technology and business, as it can inform strategies for adopting AI more effectively and maintaining competitiveness in a rapidly evolving landscape.
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