DUBLIN, March 18, 2024 /PRNewswire/ — The “Generative AI Market – A Global and Regional Analysis, 2023-2033: Focus on Business Process, Type, Technology, Offering, and Country-Wise Analysis” report has been added to ResearchAndMarkets.com’s offering.
The global generative AI market was valued at USD 13.64 billion in 2023, and is forecast to reach USD 233.61 billion by 2033, registering a CAGR of 32.9%.
This report provides a comprehensive analysis of the global generative AI market, covering advancements in machine learning and AI technologies, ethical and regulatory challenges faced by businesses, emerging opportunities in ethical AI development and bias mitigation services, and market segmentation based on business process, type, technology, offering, and region.
It highlights recent developments, key market players, and competition dynamics, offering insights into the market’s growth trajectory and competitive landscape. Notable players such as OpenAI, Google DeepMind, and Amazon.com, Inc., among others, are discussed, shedding light on both established entities and emerging startups in this rapidly evolving sector.
Advancements in Machine Learning and AI Technologies
Advancements in machine learning and AI technology have considerably increased the efficiency of content production processes, allowing enterprises in the generative AI sector to generate high-quality content at scale and at lower prices. For instance, OpenAI’s creation of more powerful generative models, such as GPT-4, enables the automatic synthesis of textual material that would otherwise require considerable human work, such as authoring articles, coding, or crafting marketing copy. This not only speeds up content creation but also minimizes the financial load associated with these chores, resulting in increased business development by reallocating resources to innovation and market expansion.
Ethical and Regulatory Challenges
Companies in the generative AI business face major ethical and regulatory difficulties related to data privacy. Regulations such as the General Data Protection Regulation (GDPR) in the European Union and the California Consumer Privacy Act (CCPA) in the U.S. set tight limits for the collecting, processing, and storage of personal data. To prevent large penalties and brand harm, businesses must train their AI models on ethically generated data and follow certain standards.
Ethical AI Development and Bias Mitigation Services
The growing knowledge and concern about AI ethics and potential biases in AI systems have opened up a substantial financial opportunity for firms in the generative AI sector. As enterprises and regulatory agencies stress the necessity of ethical AI, there is an increasing demand for services that can audit, review, and verify AI models are fair, transparent, and responsible. IBM’s Fairness 360 Kit, which includes tools for detecting and mitigating bias in machine learning models, demonstrates how businesses are creating solutions to address these ethical concerns.
Market Segmentation
Segmentation 1: by Business Process
- Content Creation and Marketing
- Human Resource Management
- Research and Development
- Finance
Content Creation and Marketing Segment to Dominate the Global Generative AI Market (by Business Process)
The generative AI market is led by the content creation and marketing segment, with a 44.95% share in 2022. This is because generative AI automates content generation and marketing by creating text, photos, and videos, saving time and resources. Generative AI personalizes marketing efforts by tailoring information to individual interests, demographics, and behaviors, leading to increased engagement and conversion rates.
Segmentation 2: by Type
- Visual
- Audio
- Text-Based
- Others
Text-Based Segment to Witness the Highest Growth between 2023 and 2033
The text-based segment dominated the global generative AI market (by type) in 2022, with a 41.83% share due to the ability of text-based generative AI to develop textual information autonomously and mirror human-like writing which makes it the perfect option for content creators, writers, among others.
Segmentation 3: by Technology
- Generative Adversarial Network (GAN)
- Variational Autoencoder (VAE)
- Transformer
- Diffusion Network
Transformer Segment to Witness the Highest Growth between 2023 and 2033
The transformer segment dominated the global generative AI market (by technology) in 2022, with a 48.16% share. This is because of the ability of the transformer to capture relationships between various words in a sentence regardless of their position, making them ideal for tasks that require awareness of long-term dependencies and context.
Segmentation 4: by Offering
- Natural Language Processing (NLP)
- Machine Learning-Based Predictive Modeling
- Computer Vision
- Robotics and Automation
- Augmented Reality (AR) and Virtual Reality (VR)
Natural Language Processing (NLP) Segment to Witness the Highest Growth between 2023 and 2033
The natural language processing (NLP) segment dominated the global generative AI market (by offering) in 2022 with a 38.89% share. This was due to its ability to automate two-way communication strategies, which transforms user interactions with digital interfaces. NLP algorithms, using techniques such as sentiment analysis, named entity identification, and part-of-speech tagging, can extract important insights from textual information such as social media posts and customer reviews, among others.
Segmentation 5: by Region
- North America – U.S. and Canada
- Europe – U.K., Germany, France, and Rest-of-Europe
- Asia-Pacific – China, India, Japan, South Korea, Australia, and Rest-of-Asia-Pacific
- Rest-of-the-World – South America and Middle East and Africa
Asia-Pacific was the highest-growing market among all the regions, registering a CAGR of 33.24%. Europe is anticipated to gain traction in terms of generative AI adoption owing to the strong legislative framework and targeted investments in AI innovation and research. The European Union has been at the forefront of developing comprehensive laws, such as the proposed AI Act, with the goal of increasing confidence and safety in AI applications while simultaneously encouraging innovation and investment in the AI field to support the growth of the generative AI market in Europe during the forecast period.
Recent Developments in the Global Generative AI Market
- In February 2024, Amazon launched Rufus, a generative AI-powered expert shopping assistant trained on Amazon’s extensive product catalog, customer reviews, community Q&As, and information from across the web to answer customer questions on a variety of shopping needs and products, provide comparisons, and make recommendations based on conversational context.
- In January 2024, SAMSUNG Electronics signed a multi-year partnership with Google Cloud to bring Google Cloud’s generative artificial intelligence (AI) technology to SAMSUNG smartphone users around the globe.
- In January 2024, IBM signed a collaboration with GSMA to support the adoption and skills of generative artificial intelligence (AI) in the telecom industry through the launch of GSMA Advance’s AI Training program and the GSMA Foundry Generative AI program.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on thorough secondary research, which includes analyzing company coverage, product portfolio, market penetration, and insights gathered from primary experts.
The generative AI market comprises key players who have established themselves thoroughly and have the proper understanding of the market, accompanied by start-ups who are looking forward to establishing themselves in this highly competitive market. In 2022, the generative AI market was dominated by established players, accounting for 88% of the market share, whereas start-ups managed to capture 12% of the market. With the increasing adoption of generative AI solutions across various industries, more players will enter the global generative AI market with each passing year.
Some of the prominent companies in this market are:
- OpenAI
- Google DeepMind
- Amazon.com, Inc.
- Adobe
- IBM
- Microsoft
- Meta
- Salesforce, Inc.
- Intel Corporation
- Synthesia Limited
- SAMSUNG
- NVIDIA Corporation
- Cohere
- Anthropic PBC
- Inflection
List of Chapters
1 Markets
2 Application
3 Products
4 Regions
5 Markets – Competitive Benchmarking & Company Profiles
6 Research Methodology
For more information about this report visit https://www.researchandmarkets.com/r/rche2n
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