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Five trends driving the adoption of Cloud AI technologies, showing reality outpaces hype

Jun 20, 2024 - venturebeat.com
Bessemer Venture Partners, a prominent Silicon Valley venture firm, has released its 2024 State of the Cloud report, predicting that Cloud AI will surpass legacy cloud technology. The report, authored by all full-time investors at the firm, suggests that companies not leveraging AI in their cloud software are likely to be left behind. The report outlines five trends shaping the future of the Cloud AI economy, including the battle over AI foundation models, the transformation of users into developers, the rise of multimodal models and AI agents, the potential of vertical AI to outperform legacy SaaS, and the possible revival of the consumer cloud.

The report also emphasizes that AI is no longer just hype, with the technology being adopted at an unprecedented rate. Bessemer Venture Partners advises companies to design for the future in modular ways, allowing for the easy integration of superior AI offerings when they become available. The firm also encourages organizations to keep a close eye on the AI space, researching and trialing new startups that may offer suitable solutions.

Key takeaways:

  • Bessemer Venture Partners' 2024 State of the Cloud report suggests that Cloud AI has supplanted the legacy cloud and is being rapidly adopted by companies.
  • The report outlines five trends shaping the future of the Cloud AI economy, including the battle over AI foundation models, the transformation of users into developers, the rise of multimodal models and AI agents, the potential of vertical AI, and the revival of the consumer cloud.
  • Bessemer predicts that by 2030, every human with a computer and a phone will have significant developer capability due to the growth and innovation of code copilots.
  • The firm also believes that AI will change the pattern of no major exits in the consumer cloud space in the past eight years, predicting multiple consumer cloud IPOs within the next five years.
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