The 2024 State of the Cloud report by Bessemer Venture Partners paints a vivid picture of the rapid adoption of Cloud AI, with the technology outpacing the hype. According to the report, Cloud AI has supplanted legacy cloud, and companies that fail to incorporate AI into their products will be left behind. The report highlights five key trends shaping the future of the Cloud AI economy, including the battle for AI foundation models, AI turning users into developers, multimodal models and AI agents changing how we work with software, vertical AI dwarfing legacy SaaS, and AI resurrecting the consumer cloud.
The report’s authors believe that Big Tech companies will engage in a “battle of the century” over AI foundation models, which will fuel downstream AI applications and tooling. Additionally, AI has made programming easier, and by 2030, every human with a computer and phone will have significant developer capability. The report also predicts that multimodal models and AI agents will change how we work with software, and vertical AI could dwarf legacy SaaS with new apps and business models.
In my opinion, the report’s findings are a wake-up call for companies to invest in AI and adapt to the changing landscape. The rapid adoption of Cloud AI is not just a trend, but a revolution that will shape the future of the tech industry. Companies that fail to incorporate AI into their products will be left behind, and those that do will reap the benefits of increased productivity and efficiency.
