Generative artificial intelligence (AI) will see explosive growth over the next several years, driven by ongoing research and development coupled with increasing commercial applications across all sectors. Generative AI revenue is forecast to increase at a compound annual growth rate (CAGR) of 80% between 2022 and 2027, growing from $1.75 billion in 2022 to $33 billion by 2027, according to GlobalData, a leading data and analytics company.
GlobalData’s latest report, ‘GlobalData Market Opportunity Forecasts to 2027: Generative AI,’ reveals that the US is the largest market for the new AI technology, with a share of 30% of total revenue, followed by China with an 11% share. Meanwhile, Brazil and India are among the fastest growing markets, registering a CAGR of 100% and 97% during the forecast period, respectively.
Praveen Kumar Tripathi, Lead Analyst, Technology, at GlobalData, comments: “Generative AI is expected to experience rapid growth owing to its capability to enable machines to generate fresh and creative content, which until now has only been done by humans. Generative AI is poised to have a substantial impact across a range of industries, transforming how organizations envision innovation, problem-solving, and user experiences.”
According to GlobalData, the top five verticals for generative AI are information technology (IT), manufacturing, government, retail banking, and retail, which collectively accounted for 39% of the overall market in 2022.
Rena Bhattacharyya, Service Director at GlobalData, adds: “Popular use cases for generative AI include customer service, chatbots, document search, content creation, and fraud identification. In the IT sector, organizations are exploring generative AI for anomaly detection, code generation, systems simulations, and data augmentation.”
Generative AI is transforming many fields, including, healthcare, life sciences, entertainment, and education, helping enterprises develop innovative solutions and deliver more personalized experiences.
Praveen continues: “With advancements in generative AI, the technology is expected to penetrate almost every vertical industry and lead to new and emerging use cases. However, to ensure controlled and beneficial use, the adoption of generative AI in certain sectors may depend on regulatory considerations and ethical implications.”
Rena concludes: “By bridging the gap between artificial intelligence and human ingenuity, generative AI not only expands technological capabilities but also redefines the very nature of creativity in an ever-evolving world. Enterprises will integrate generative AI into their business processes to gain a competitive edge and deliver new solutions and experiences to customers.”
