Generative AI hit the mainstream running, but start-ups and small ventures are —perhaps wisely—taking a cautious approach to it.


  1. Gen AI still sits below one percent of overall spend on cloud technologies.
  2. There are significant pitfalls with Gen AI—not just benefits.
  3. Gen AI is prone to hallucinations (inaccurate responses).
  4. Generative AI is likely to deliver increasingly diminished returns.