30-fold increase in market size! Study Says Generative AI Poised for Explosive Growth

Published By: EAIOT Time: Jun 02, 2023 23:41:15 Categories: AI 1567 Views Total: 0Comments

Since the advent of ChatGPT, the capital markets have been on an investment spree around AI, but perhaps that's just the beginning.

In a recent report, Bloomberg Intelligence predicts that ChatGPT will bring a 10-year boom to the generative AI market, which will expand at a 42% rate.

The report predicts that nine years from now, in 2032, the global generative AI market will reach $1.3 trillion, 32.5 times the size of last year's $40 billion market:

The next decade will see explosive growth in the generative AI industry, which may fundamentally change all industries. Generative AI technologies will become an increasingly important component of IT, advertising, and cybersecurity.

The market size for the industry as a whole will first be driven by demand for the infrastructure necessary to train AI systems, with business revenues in this area reaching $247 billion by 2032.

Growth will also be driven by devices and software that use AI models, advertising and other services, with AI-enabled digital advertising business revenues reaching $192 billion by 2032 and AI server revenues likely to reach $134 billion.

The report points out that Amazon's cloud business, Google's parent company Alphabet, Nvidia and Microsoft are likely to be the big winners in the "AI era".

Goldman Sachs has also previously pointed out in a report that the current is still in the early penetration stage of generative AI, AI boom, the overall size of enterprise-class generative artificial intelligence software (TAM Total Addressable Market) will reach $ 150 billion, when the overall size of the global enterprise software market will reach $ 685 billion:

Existing software will also have some room for price increases due to the incorporation of generative AI add-ons, with the average annual spend per person on generative AI at $78.

Goldman Sachs also believes that while AI applications are being updated at an exponential rate, it is the technology giants, including Microsoft, Alphabet, Nvidia, Amazon, Salesforce, Meta, Intuit and Adobe, that will lead the future of generative AI.

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