The intersection of generative AI, cloud computing and data transformation is ushering in a new wave that promises to be bigger and more transformative than anything the enterprise has seen before — one made even more potent and more widely distributed by the rapidly emerging supercloud.

“I think that just like the internet, everybody was able to take advantage of that — that’s what supercloud is all about,” said Dave Vellante (pictured, right), technology analyst and co-host of theCUBE. “We’ve now got this cloud infrastructure that’s out there that’s proven, it’s resilient, it’s secure, and you can build value on top of that. And the whole world is doing that. It’s digital transformation meets cloud meets supercloud meets AI — it is happening, and it’s really exciting.”

In their final wrap-up analysis from this week’s Supercloud 4 event, Vellante and fellow analyst John Furrier (left) discussed how the intersection of generative AI, cloud computing and data transformation is reshaping industries and user experiences.

The power law of gen AI

One of the central themes of the event was the application of the notion of the power law, a concept that Furrier and Vellante have applied to illustrate how the generative AI market is likely to evolve. It highlights the shifting landscape, where specialized AI systems and infrastructure are propelling the technology beyond the initial big winners such as OpenAI LP and its partner and patron Microsoft Corp. The creation of specialized AI models and their associated datasets is a driving force behind this movement.

“The power law to me is so descriptive, because it just talks about … this is the biggest opportunity,” Vellante said. “And we heard from SiMa.ai about that telco edge, which we’ve been talking about and researching the impact that that’s going to have potentially on the enterprise. That’s a wild card that nobody is really talking about — its impact on the enterprise — but it’s happening before our eyes. Consumer markets are driving that innovation.”

The transition to natural language interfaces is simplifying interactions with technology, making it accessible to a broader range of users. This consumerization of AI is fundamentally altering user expectations, putting pressure on companies to incorporate AI into their products or risk becoming obsolete, Vellante added.

The cloud infrastructure, resilient and secure, is now the foundation upon which countless innovations are being built. The convergence of digital transformation, cloud computing and AI is fostering an ecosystem that enables rapid growth and innovation.

How the giants are responding

In November 2022, ChatGPT — the brainchild of then-unknown OpenAI — blew the market for AI wide open. Since then, established tech giants, such as Amazon.com Inc. and Google LLC, have been scrambling to stay competitive with ChatGPT’s runaway success and the proliferation of large language models, Vellante added.

“Anybody who says they didn’t get caught off-guard by ChatGPT is full of it,” he said. “Even Microsoft said they absolutely couldn’t predict what happened. It’s not like they didn’t have LLMs. It’s not like they weren’t playing around with them, but there’s no question they got caught off-guard. And I think you’re hearing it now in their PR, and they’re sort of scrambling to say, ‘Hey, we’ve got a long way to go — we’re a leader in AI by the way.'”

Amazon’s response is twofold. First, it aims to expand its total addressable market by entering and transforming industries such as telecom and healthcare. Second, it’s leveraging its custom silicon capabilities, such as Graviton and Inferentia, to create innovative solutions, Furrier noted. The intelligent edge, driven by robotics and local zones, is also a key part of its strategy.

The consumerization of AI

Innovations such as Bluetooth, personal computers and mobile phones had to reach mainstream accessibility on the way to mass success. The same is now happening to AI. Gen AI has brought those capabilities to the hands of everyday users. The ease of use and the transformative potential of AI-driven applications are captivating consumers and setting new expectations.

“I think that aspect of the consumer seeing it has put everybody on notice,” Furrier said. “If your applications do not address the consumer expectation of some sort of assistance or augmentation or benefit, you’re done. I mean, it’s clear to me that if you don’t have that AI in there, you’re done as a company and as a product.”

As companies adapt to meet these expectations, AI will become an integral part of the product experience. Whether it’s voice-activated commands, AI chatbots or data-driven insights, AI is becoming a fundamental feature in every product and service.

Here’s the complete video analysis, part of SiliconANGLE’s and theCUBE’s coverage of Supercloud 4:

Photo: SiliconANGLE