Companies and generative AI: are you simply looking?

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This week I’m diving more in-depth on what generative AI means, or doesn’t mean, for business buyers. I also have some notes on why your business might want to look like Figma and how the investor side of the market is adjusting to the dips that are the new normal. — Anne

Potential not yet unlocked

When The Exchange reviewed Battery Ventures’ State of Cloud Software Spending report, we began by focusing on what the title promised: new data on cloud software spending. And it turned out to be more encouraging than expected.

We then looked at some other good news for founders: Startups that create technology to automate tasks and generate quick productivity gains might be able to avoid the downturn. It was based on a report data point showing that automation had risen among the company’s budget priorities.

But deep down I kept thinking about some of the report’s comments on generative AI – and not just because superlatives on the subject have been ubiquitous ever since.

If anything, you could call Battery’s view on generative AI conservative, but that would be unfair. After all, the venture capital firm was only relaying the results of its first-quarter survey, which garnered responses from 100 senior executives (CXOs) managing approximately $30 billion in spend.