But they also trust cloud platforms like GCP to host models and store company data.

Why would a company use an expensive proprietary model on Vertex AI, for example, when they could use an open-source one on Vertex AI that is just as reliable for a fraction of the cost?

I think you are getting at the idea of branding, but branding is different from security or reliability.

> Don't underestimate the value of a scapegoat to point a finger at when things go wrong.

Which is an interesting point in favour of the human employee, as you can only consolidate scape goats so far up the chain before saying "It was AIs fault" just looks like negligence.