The revenue for Generative AI infrastructure as a service for training extensive language models is also projected to attain US$247 billion by 2032.
Heaptalk, Jakarta — An Artificial Intelligence (AI) market, such as Google’s Bard and OpenAI”s ChatGPT, is poised to spike, climbing up to US$1.3 trillion (around Rp19,330 trillion) over the next ten years, from a market size of approximately $40 billion in 2022, with a Compound Annual Growth Rate (CAGR) of 42%.
According to Bloomberg Intelligence’s (BI) new report estimates, this growth is driven by training infrastructure in the short term and gradually changing to inference devices for Large Language Models (LLMs), digital ads, specialized software, and service in the medium and long term period.
This report came amid concerns that AI could pose an existential threat to humanity if this technology no regulated. However, despite the misgivings, Generative AI has proved to be a disruptive force, becoming a multi-billion industry within a few months.
In more detail, this report broke down the expected revenue of the business. As stated in the BI report, AI software, including AI software like AI assistants, infrastructure products, and programs that speed up coding, could demonstrate US$280 billion in 2032, generating an annual growth rate of 69%.
Generative AI utilization is estimated to reach around 10% – 12% of the total utilization of the IT hardware, software services, advertising spending, and games market by the end of this year. This portion shows an increase compared to the current less than 1%.
Based on this report, the giant technology players, such as Amazon Web Service, Google, Microsoft, and Nvidia, are estimated to reap substantial benefits from AI, driven by enterprises’ need to migrate increasing workloads to the cloud.
The revenue for generative AI infrastructure as a service for training extensive language models is projected to attain US$247 billion by 2032. On the other hand, this report discloses that Generative AI-powered digital advertisements are anticipated to produce a revenue of US$192 billion by that similar year. In comparison, the contribution from generative AI assistant software is estimated to reach US$89 billion.
“The world is poised to observe an explosion of growth in the Generative AI sector over the next ten years that promises to change how the technology industry operates fundamentally. The technology is set to become an increasingly essential part of IT spending, advertisement spending, and cybersecurity as it develops,” An Analyst of the Bloomberg Intelligence report Mandeep Singh said.
