Unstoppable Rise: Generative AI Market Projected to Rocket from $6.2 Billion in 2023 to $58.5 Billion by 2028
“The emergence of generative AI is rapidly propelling the world into a groundbreaking era, with the technology sector in a brisk race to adapt,” emphasizes Brad Shimmin, Chief Analyst for AI & Data Analytics at Omdia.
Generative AI (GAI) serves as a crucial component of the expanding AI software market. The excitement surrounding GAI is driving the entire AI software sector to surpass previous estimations. According to Omdia, GAI is projected to add a remarkable $3 billion to the AI market’s forecast for 2023, climbing to an astonishing $13 billion by 2027, with the total market value for AI software expected to reach $160 billion by that time.
At present, GAI is navigating an innovation phase, where industry players are actively engaging in extensive experimentation amidst a backdrop of some uncertainty. Projections also spotlight significant risks, as the current version of GAI has shown vulnerabilities in areas like bias, hallucinations, inaccuracies in facts, and concerns over copyright violations. Additionally, the expenses linked to GAI are notably higher than those associated with traditional AI frameworks.
Looking ahead, Omdia identifies that the top four applications of GAI will likely include virtual assistants, the development of generative models that mirror real-world scenarios, writing support tools, and automated coding solutions. In terms of specific sectors, consumer-oriented applications—such as search engines and computer-generated imagery—as well as media and entertainment fields including game design and multimedia production, are poised to lead the market.
The Generative AI Software Market Forecast from Omdia provides a detailed exploration of the market’s key drivers, obstacles, and prospects for GAI software from 2022 to 2028. This extensive database categorizes over 100 use cases across 20 diverse industries, segmented into eight global regions and covering six specific AI technology workloads.
