Cloud and AI Spending Cautious Amid Slowing Economy Despite Tech Potential

Companies are experimenting with AI like generative models, but real-world adoption and spending remains uncertain. Costs may end up higher than anticipated.

Cloud revenue growth is uneven and lumpiness in deal volume makes it hard to predict. Some big deals won't show impact for months.

With the slowing economy, deal cycles are lengthening and companies are scrutinizing spending more closely.

Cloud providers are seeing increased "optimization" from customers trying to maximize existing investments.

Microsoft is a top competitor in cloud services and has strong AI offerings. Investors should temper expectations for Amazon's growth prospects.