In my opinion it depends on the surrounding situation.
If the team developing/managing those serverless applications don't touch Prometheus anywhere else, then it might not be worth it, instead using the native cloud provider's solution.
But if there is an extensive Prometheus/Grafana infrastructure elsewhere that probably changes - ideally you don't want multiple different alerting systems or dashboarding systems.
In that case you can do a number of things. If it is just dashboards you have elsewhere using Grafana then you can pull metrics directly from Cloudwatch metrics, etc. If you are using Grafana for alerts that would be covered too.
If you are using Prometheus for alerts then you'd look to use the
various cloud exporters, such as the Cloudwatch Exporter to bring
the data into Prometheus.