ICT-IOT

Generative AI Market is Projected to Reach USD 186.33 Billion by 2031

Feb 2024

ICT-IOT

As per the report published by Kings Research, the global Generative AI Market was valued at USD 15.95 billion in 2023 and is projected to reach USD 186.33 billion by 2031, growing at a CAGR of 36.60% from 2024 to 2031.

Generative AI, also known as generative artificial intelligence, encompasses a category of algorithms and models strategically crafted to autonomously generate unique content across diverse industries. Machine learning neural network architectures and generative AI systems demonstrate proficiency in creating a spectrum of outputs, including images, text, and music, all without explicit programming. These algorithms draw insights from extensive training data, deciphering patterns to generate content that mirrors the characteristics of the provided input data. The defining trait of generative AI models lies in their capacity to produce innovative and contextually pertinent outputs, presenting significant value in sectors like content creation, healthcare, and design. As a transformative technological force, generative AI solutions elevate creativity, foster innovation, and optimize efficiency in industries that leverage automated and intelligent content generation.

Key Insights

  • Based on component, the services segment is estimated to witness the fastest growth at a 38.02% CAGR through the forecast period
  • Based on data modality, the text segment accounted for the largest market share of 29.74% in 2023
  • Based on end user, the BFSI segment garnered the highest revenue of USD 3.64 billion in 2023
  • Based on region, Asia Pacific is expected to depict the highest CAGR of 41.21% over the forecast period

Yellow.ai Launches an Advanced Conversational AI Platform

May 2023: Yellow.ai, a company specializing in conversational AI, introduced YellowG, an advanced conversational artificial intelligence (AI) platform tailored for automation technology. By leveraging recent advancements in NLP and Generative AI, the platform claims to offer secure, empathetic, and context-aware conversations. 

Growing Necessity to Create a Virtual World in the Metaverse to Foster Market Outlook

Rising interest and the necessity to establish a virtual world within the Metaverse present a significant growth opportunity for the generative AI market. As the Metaverse gains prominence, there is an increasing demand for generative AI technologies to create immersive and realistic virtual environments. Generative AI models play a pivotal role in shaping the visual and interactive aspects of the Metaverse, from lifelike characters to dynamic landscapes. This demand is driven by the need to replicate real-world experiences within the virtual realm. Industries ranging from gaming and entertainment to education and business are leveraging generative AI solutions to build engaging and interactive virtual spaces. The Metaverse's growth trajectory, fueled by the need for a more interconnected and immersive digital experience, positions generative AI technologies at the forefront of this transformative opportunity.

Risks Related to Data Breaches and Sensitive Information to Hinder Market Growth

The generation of content using AI models often involves processing large volumes of data, including sensitive information. This raises concerns about the potential for data breaches and the misuse of confidential data. The risk of malicious actors exploiting vulnerabilities in generative AI systems to compromise privacy and security is a genuine challenge. As generative AI technologies are integrated into various sectors, the need for robust data protection measures becomes paramount. Addressing these risks requires industry-wide collaboration to develop and implement stringent security protocols, ensuring the responsible and secure deployment of generative AI solutions.

Asia Pacific to Experience Fastest Growth at 41.21% CAGR through the Forecast Period

Based on region, the global generative AI market is classified into North America, Europe, Asia-Pacific, MEA, and Latin America. The region's burgeoning technological landscape, coupled with a proactive approach to adopting innovative solutions is likely to propel the growth. Governments and businesses in the Asia Pacific are increasingly investing in generative AI technologies to drive advancements across diverse industries. The flourishing startup ecosystem, coupled with a large and digitally engaged population, is set to contribute notably to the region's potential growth. Manufacturers in industries such as e-commerce, gaming, and manufacturing in Asia Pacific are adopting generative AI solutions to enhance user experiences, optimize processes, and gain a competitive edge. This growth trajectory is further fueled by supportive government policies, increased research and development activities, and a growing awareness of the transformative capabilities of generative AI technologies across the Asia Pacific region.

Surging Focus of Market Players Product Innovation to Drive Industry Development

The global generative AI market is fragmented with key players such as OpenAI, Microsoft, Google LLC, IBM Corporation, Amazon Web Services, Inc., Adobe, Synthesia Limited, Baidu, Alibaba Group, and Bitonic Technology Labs Inc (Yellow.ai). Companies are employing a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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