Summary:
According to a report from Bloomberg Intelligence, the market for generative AI is expected to grow at a compound annual rate of 42% from $40 billion in 2022 to $1.3 trillion by 2032. Generative AI is predicted to account for 12% of total IT spending by the end of the forecast period. The growth will be driven by software providers adopting the technology and enterprises deploying custom solutions.
Introduction:
The market for generative AI is set to experience significant growth in the coming years, according to a forecast from Bloomberg Intelligence. The report predicts that the industry will expand at a compound annual rate of 42%, reaching a value of $1.3 trillion by 2032. This growth is expected to be driven by the adoption of generative AI by software providers and the deployment of custom solutions by enterprises.
Main Points:
– In 2022, the majority of generative AI revenue was tied to computing infrastructure for training models, with a smaller percentage allocated to inference and software, web, and professional services.
– However, the report predicts that software revenue will reach $280 billion annually by 2032, as commercialization accelerates.
– Currently, training costs are higher than inference costs, reflecting the research and development phase of the market. Significant investments are required to develop commercial products and capture future revenue.
– The report suggests that training infrastructure will be a $473 billion market, while services will reach $380 billion.
Conclusion:
The market for generative AI is set to experience substantial growth over the next decade. The report from Bloomberg Intelligence predicts a compound annual growth rate of 42%, with the industry reaching a value of $1.3 trillion by 2032. This growth will be driven by software providers adopting the technology and enterprises deploying custom solutions. The rapid maturation of generative AI capabilities is leading organizations in every industry to integrate the technology into their products and services. With leading technology companies and startups investing heavily in generative AI, it has the potential to fundamentally reshape the IT landscape.