The Generative Ai Hype Hasn’t Translated To Cloud Sales Yet, As Customers Don’t Know If They Should Jump In. Microsoft Is The One Exception.

Microsoft Azure and other cloud services saw a 29% year-over-year increase in revenue this past quarter, down from 35% the previous quarter. Google reported a 22% year-over-year increase in cloud revenue, down from 28% the previous quarter. Wall Street has been hopeful that generative AI will provide a much-needed revenue boost for the big three cloud providers, but analysts say it’s too soon to expect much of a lift. Microsoft’s cloud services unit reported that 3% of its sales growth came from generative AI, one percentage point more than expected. Cloud customers surveyed by UBS’s team broadly stated that they are still figuring out what to do with the nascent technology.