Generative AI Market: The Next Productivity Frontier for Enterprises

Generative AI Market Size, Trends, & Statistics 2023-2025

Due to these generative AI limitations, businesses may be hesitant to use them, which would hinder the market’s expansion. The report includes an assessment of the market trends, segments, and regional markets. Consequently, the ease of accessibility, cost-effectiveness, and customization scale-up of cloud-based service would drive the demand for this technology in the forecasting year. Consequently, the industry’s prominent investment in this technology would create a growth opportunity for the market in the forthcoming years. For instance, in 2023, Scenario Games invested USD6 million to generate game art assets with the help of Generative AI.

Due to the lack of availability of experienced professionals, the market growth is restrained. The different features of generative AI could only be used with the skill of experienced professionals. Generative AI has the power to automate repetitive and time-consuming tasks, leading to significant efficiency gains across industries like content creation, data analysis and manufacturing. Generative AI automates content generation processes like content generation and interpretation while freeing up human resources for more challenging and creative endeavors. Generative AI allows businesses to tailor content directly to individual preferences for increased engagement and satisfaction from their customer base, thus driving its adoption in sectors like marketing, advertising, and e-commerce.

Based on Component

The BFSI segment is expected to witness the fastest growth rate of 38.1% during the forecast period. The market growth in this segment is attributed to the increasing implementation of AI & Machine Learning (ML) in the sector to prevent fraudulent activities, secure data, and meet the dynamic needs of various stakeholders in financial services. Yakov Livshits Generative AI benefited the banking industry by creating marketing images and text and generating data to make ML applications more efficient and accurate. Moreover, generative AI in commercial banking can accelerate back-office tasks, such as answering real-time questions about a customer’s financial performance in complex scenarios.

generative ai market size

Deep learning models are used by generative AI to build intricate structures for algorithms that handle massive amounts of data, including text, code, and images, which is creating a high demand for this segment. For instance, the DeepDream Generator is a generative AI image generator that produces strange, Yakov Livshits dream-like visuals using deep learning algorithms. The generative AI market is experiencing a significant surge, fueled by several key factors. The increasing volume of data, coupled with the necessity to extract meaningful insights from it, has propelled the demand for AI-powered solutions.

Key Players in the Generative AI Industry

The search engine marketing segment is projected to register a considerable CAGR during the forecast period, due to the surging use of generative AI in improving search engine marketing factors such as headlines, ad copy, bid engagement, and landing pages. Rising awareness about the generative AI benefits such as website performance improvement and high conversion rates propels the segment. These advantages are expected to be profitable for the company websites, as they are efficient to target relevant keywords, enhancing online visibility, and driving potential traffic to intended landing pages. The social media marketing segment accounts for a significant market share, as generative AI helps in creating content for specific social media platforms such as Twitter and Instagram. The advanced AI technology also helps in generating hashtags and other related metadata that boost the visibility of the posts to a large pool of viewers, and increase brand awareness.

Generative AI could boost productivity by $4.4 trillion annually –

Generative AI could boost productivity by $4.4 trillion annually.

Posted: Wed, 30 Aug 2023 07:00:00 GMT [source]

The gaming industry benefits profoundly from the implementation of Generative AI, permitting the creation of new characters, levels, and storylines, which results in immersive and rewarding gaming experiences. A. Generative AI refers to a type of artificial intelligence focused on creating new content such as images, music and text using machine learning algorithms. Rapid advances in computational power, machine learning algorithms and data availability are driving the growth of generative AI.

Yakov Livshits
Founder of the DevEducation project
A prolific businessman and investor, and the founder of several large companies in Israel, the USA and the UAE, Yakov’s corporation comprises over 2,000 employees all over the world. He graduated from the University of Oxford in the UK and Technion in Israel, before moving on to study complex systems science at NECSI in the USA. Yakov has a Masters in Software Development.

Also, the presence of prominent market players, such as U.S.-based Meta, Microsoft, and Google LLC, developed technology organizations, and the presence of experts are likely to drive the regional market growth. The regional market is also driven by factors, including increasing demand for AI-generated content in the media & entertainment, healthcare, and other industries and the availability of large amounts of data for training generative models. The Generative AI Market size is estimated to grow at a CAGR of 32.65% between 2022 and 2027.

The Global Autonomous AI and Autonomous Agents Market size is … – GlobeNewswire

The Global Autonomous AI and Autonomous Agents Market size is ….

Posted: Wed, 30 Aug 2023 15:49:16 GMT [source]

This demand arose from the need to elevate customer experiences and cater to individualized needs. Generative AI empowers businesses to devise personalized music playlists, news feeds, and product recommendations, among other applications. Generative AI-specialized companies like OpenAI, Cohere, Synthesia, and Mostly AI have been at the forefront of devising cutting-edge solutions in this domain. Future prospects of generative AI look bright, as advances in technology and research lead to more sophisticated and efficient generative models.

In such a scenario, key players must adopt effective strategies to stay ahead of the competition. This segment captures a significant market share in 2023 due to the high demand for text generation and text completion. Our team of market analysts can help you select the best report covering your industry. We understand your niche region-specific requirements and that’s why we offer customization of reports. With our customization in place, you can request for any particular information from a report that meets your market analysis needs.

To mitigate this, organizations should choose eco-friendly AI developers and cloud providers. Achieving success with Generative AI requires buy-in, collaboration, and user involvement. It is essential to prioritise data quality and security, starting small with scalability in mind, and involving end-users in the design process. The increasing investment in artificial intelligence is providing huge opportunities to the market.

Generative AI Market: The Next Productivity Frontier for Enterprises

Asia Pacific is expected to hold the highest CAGR during the forecast period due to the presence of some of the fastest-growing economies worldwide. The region has also witnessed significant growth in AI technologies, which is propelling the market development in the region. Such strategic developments and advancements started by key players are expected to fuel the growth of the market. Marketers and advertising agencies are excited and cautious about it at the same time. Generative AI is a subset of AI that focuses on making new content, such as text, images, and sounds, based on the input it receives.

generative ai market size

Additionally, LLMs are transforming data analysis by extracting insights from unstructured text data, enhancing decision-making processes. As LLMs continue to evolve, they promise to revolutionize the way businesses operate, making them more efficient and responsive to customer needs. These services enhance the value proposition of generative AI solutions by ensuring optimal implementation, minimizing disruptions, and empowering businesses to capitalize on the transformative capabilities of this technology. As companies increasingly recognize the strategic importance of tailored AI solutions, the demand for professional services is expected to remain robust, thereby solidifying its leadership in the generative AI market. Key factors driving the Generative AI market growth include rising applications of novel technologies and growing demand to modernize workflow across industries.

  • Additionally, India plans to take use of the potential of artificial intelligence to support broad-based economic development.
  • This report seeks to equip executives with insights into how Generative AI models are presently exerting their influence in real-world applications and the potential implications that may arise.
  • The advanced AI technology also helps in generating hashtags and other related metadata that boost the visibility of the posts to a large pool of viewers, and increase brand awareness.
  • Generative AI is a vital technology because of its adaptability and wide variety of potential uses.
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