Gen AI: Coming to an On-Prem Theatre Near You? In the march to embrace generative AI, most IT leaders have generally assumed the SaaS model is equally applicable to gen AI as it is to business solutions. My assessment suggests otherwise. I sense there's something unmistakable about the economic factors surrounding decisions involving generative AI adoption for workers. Ya know that smell of fresh salt air as the tide turns? That's what I'm sensing for on-prem AI - there's a certain freshness and happiness I sense when speaking with those who have experienced localized generative AI. - Most organizations (SMEs especially) have become shadows of their former IT selves. - Most have also become vastly dependent on the SaaS model. - Many believe the high technical bar of DevOps, on-prem deployments, and sustained localized application management is out of reach financially and managerially. - Many want to insulate their teams from privacy and security issues, especially regarding generative AI. They rationalize a trade-off, which is a decision point that falls in favor of SaaS solutions. - Expectedly, they lean into SaaS with generative AI services and fail to realize that workers are infinitely more likely to expose sensitive information when a conversational UI provides the gateway to better search, improved Q&A, and hypothetical queries. SaaS is a foregone conclusion because (i) we are all pretty satisfied with the cost matrix, performance, and security, and (ii) generative AI vendors have [thus far] offered only off-prem solutions. What's your take? Are we about to experience a sea change as we understand the risks of trusting SaaS AI solutions with our deepest and most sensitive thoughts and questions?
Dilip D.
3mo
Bill, I agree with you, there is a change in the air. I think one factor that could halt or delay this is the cost and demand for GPUs and TPUs. Not many organizations will be able to afford these which could derail this.
Alex Belov
3mo
Bill, intriguing comparison. The tide analogy really paints the picture. I've observed a similar shift - the craving for control and security may indeed drive a resurgence of on-prem solutions. Could localized AI offer a unique competitive edge for SMEs, do you think?
AI/Tech Writer / Marketer
3moData privacy is a huge stumbling block I think for companies who get propositioned with gen ai.