The AI boom continues, and cloud providers are at the heart of it, with the Microsoft/OpenAI partnership sparking similar efforts from rivals. Cloud providers provide scale for large language models (LLMs), generative AI (genAI), and GPU resources that most organizations cannot afford on their own. Cloud providers’ click-and-go AI managed services, along with infusions of AI into existing services, put new capabilities into users’ hands. But cloud isn’t ideal for every AI implementation and enterprises want to know how to best revamp their cloud strategy. This report provides guidance on integrating AI into your cloud strategy and examines the potential and limitations of running AI workloads in the cloud.