Application deployment hindered? Alphabet-C and Amazon quietly lower expectations for generative AI.

On March 12th local time, according to The Information, large cloud service providers such as Amazon, Microsoft, and Alphabet-C have internally begun adjusting expectations for their sales teams, emphasizing the gap between the current technology of generative AI and its marketing hype.

Most customers have shown caution in investing in new AI services, expressing concerns about high usage costs, insufficient accuracy, and the difficulty in assessing the value brought by the technology.

Last year, cloud service providers invested heavily in NVIDIA's AI server chips, hoping to profit from AI services. However, except for Microsoft, other companies have not seen significant returns so far.

Industry experts point out that although the potential of generative AI technology is enormous, it is still in its early stages. Many companies are continuously exploring how to effectively utilize this technology to improve efficiency without increasing costs significantly.

Amazon recently reminded its salespeople at its annual kickoff meeting that the technology is currently at its peak hype, but over time, customers' understanding and expectations of the technology will become more rational.

Amazon CEO Andy Jassy has repeatedly told investors that generative AI will bring Amazon billions of dollars in revenue. However, faced with the current gap between the actual application of the technology and expectations, he also admitted in a recent earnings conference call that the current direct benefits of this technology are "relatively small." This situation indicates that although the commercial prospects of generative AI are widely optimistic, achieving this goal still requires overcoming technological and market challenges.