GenerativeArtificial Intelligence MarketThe industry is experiencing explosive growth, expected to grow from $6 billion this year to $59 billion in 2028. The technology is used in a wide range of fields, from marketing to insurance. However, its rapid growth is accompanied by concerns about its potential risks, including automation of hundreds of millions of jobs and threats to humans.
Generative AI is considered an innovative and disruptive technology. It can generate large amounts of complex media such as text, computer code, images or music by learning from online data, thereby improving productivity. However, some people have expressed concerns about the potential harm of the technology, including the threat of automating hundreds of millions of jobs.
Source Note: The image is generated by AI, and the image is authorized by Midjourney
According to Omdia, the fastest-growing market for generative AI is the consumer market, which is expected to generate $11 billion in revenue by 2028, used to power search engines, writing assistants, and artwork. It is followed by the media and entertainment industry, where revenue is expected to reach $8 billion, and then the medical, commercial, and automotive markets.
Companies in generative AI can be roughly divided into three categories: those that create "base models" trained on large amounts of data taken from the internet, vendors that provide the necessary infrastructure (such as computing power), and software providers that adapt the technology to business tasks or industries. In the first two categories, only a few companies dominate due to the scale of computing power and expertise required. In the base model market, major vendors include OpenAI, Google, and startup Anthropic. In the infrastructure field, major vendors include Amazon Web Services and Nvidia, whose powerful graphics processing unit chips help meet the powerful computing needs of artificial intelligence.
However, there is a much wider range of companies in the third category — companies that create products that rely on generative AI. In the marketing space, for example, Texas company Jasper has developed a tool that automates tasks like creating marketing campaigns and writing social media posts. The company already serves clients like HubSpot and has sourced models from companies like Anthropic, Google, and OpenAI. While these technologies can improve efficiency, the company doesn’t believe its services will lead employers to fire all their marketers and replace them with generative AI. Generative AI has also found markets in legal services and insurance, helping to automate tedious but important tasks like drafting large business contracts and spotting risks in documents.
The consumer market for generative AI is also growing rapidly, with new applications including a forthcoming tool in the WhatsApp messaging app that can instantly draw comic strips on demand. In addition, Meta is developing an assistant that can join group chats to provide relevant information from the Internet when discussing topics such as vacations. Microsoft recently announced that it will include a generative AI assistant, Copilot, in its Office software for an additional $30 per user per month. This feature will be able to draw on data in a company's existing Word documents or Excel spreadsheets.
Even as the generative AI market matures, some software companies will inevitably be affected and smaller vendors may disappear. As Euan Cameron, PwC’s UK AI leader, said, the generative AI market may not continue to sustain more than 400 different AI vendors, but will see market consolidation.