Generative AI refers to a branch of artificial intelligence which focuses on creating new content such as images, videos, text or audio rather than just analyzing existing content. It has wide range of applications across various industries such as healthcare, marketing, entertainment and more. Generative AI can automatically generate realistic images, summarization of long documents, new artistic styles of images and assist in various creative tasks which were previously done by humans. It helps organizations to save costs and increase productivity.
The Global Generative AI Market is estimated to be valued at US$ 68.34 Billion in 2024 and is expected to exhibit a CAGR of 32.8% over the forecast period 2024 to 2032.
Key Takeaways
Key players: Key players operating in the Generative AI market are Abacus.AI, Accenture, Adobe, Adept, AI21 Labs, Amazon Web Services (AWS), Anthropic, Character.ai, Cohere, Google, Hugging Face, IBM, Insilico Medicine, Microsoft, and NVIDIA. These players are focusing on expanding capabilities of their generative AI tools to generate more human-like text, images and other forms of content.
Growing demand: Generative AI Market Demand is increasing across various industries as it helps reduce costs and automate creative tasks. Industries like healthcare, marketing and media & entertainment are increasingly adopting generative AI tools to enhance operations.
Global expansion: Leading generative AI companies are expanding globally to capture more opportunities. They have established R&D centres and offices across regions like North America, Europe and Asia Pacific. The adoption of generative AI is highest in countries like U.S., China, U.K., Germany and Japan currently.
Market Key Trends
Image generation is a key trend in the generative AI market. Technologies like GAN (Generative Adversarial Networks) have made remarkable progress in generating highly realistic images based on text descriptions or existing images. Startups like Anthropic are focusing on developing constitutional AI to ensure image generation capabilities of AI systems are used responsibly. Advances in natural language processing (NLP) have also enabled AI systems to generate human-like text content for various tasks. Going forward, the integration of computer vision and NLP capabilities will further augment generative AI systems to automate more creative tasks.
Porter’s Analysis
Threat of new entrants: The high capital required for setting up generative AI infrastructure and talent acquisition poses barriers for new companies.
Bargaining power of buyers: Buyers have moderate bargaining power given the differentiated capabilities of various generative AI solution providers.
Bargaining power of suppliers: Suppliers of specialized hardware and high skilled talent have significant bargaining power in the generative AI market.
Threat of new substitutes: Alternate modalities like reinforcement learning and transfer learning pose minimal threat currently given generative AI's advantage in rapid content creation.
Competitive rivalry: Fierce competition exists among global leaders to capture more share through continuous product innovation and geographical expansion.
Geographical Regions North America accounts for the largest share of the generative AI market currently due to heavy investments by technology giants and startups in the US and Canada.
The Asia Pacific region is poised to be the fastest growing market for generative AI during the forecast period led by China, Japan and South Korea. Favorable government initiatives and growing demand from industries like media, education and ecommerce are fueling adoption.
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Resources
Building Smarter Apps with Generative AI
About Author:
Priya Pandey is a dynamic and passionate editor with over three years of expertise in content editing and proofreading. Holding a bachelor's degree in biotechnology, Priya has a knack for making the content engaging. Her diverse portfolio includes editing documents across different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. Priya's meticulous attention to detail and commitment to excellence make her an invaluable asset in the world of content creation and refinement.
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