Generative artificial intelligence (AI) is set to yield US$33 billion in global revenue within five years as the technology experiences rapid growth.
According to analyst firm GlobalData, generative AI will grow at an 80 per cent compound annual growth rate (CAGR) in the five-year period between 2022 and 2027.
Generative AI is an umbrella term for any kind of automated process that uses algorithms to produce, manipulate, or synthesise data, often in the form of images or human-readable text.
Although generative AI has been around arguably since 1966 – in the form of therapy chatbot ELIZA – the technology hit global headlines last year following the launch of ChatGPT, a text-based AI chatbot that produces human-like copy.
According to GlobalData, 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 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,” said Praveen Kumar Tripathi, lead analyst of technology at GlobalData.
“Generative AI is poised to have a substantial impact across a range of industries, transforming how organisations 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 per cent of the overall market in 2022.
“Popular use cases for generative AI include customer service, chatbots, document search, content creation and fraud identification,” added Rena Bhattacharyya, service director at GlobalData.
“In the IT sector, organisations are exploring generative AI for anomaly detection, code generation, systems simulations and data augmentation.”
Notable verticals set to be most affected by generative AI include healthcare, life sciences, entertainment and education, GlobalData claimed.
In addition, enterprises are looking to generative AI to uncover to help drive process efficiency and more personalised customer experiences.
“With advancements in generative AI, the technology is expected to penetrate almost every vertical industry and lead to new and emerging use cases,” said Praveen.
“However, to ensure controlled and beneficial use, the adoption of generative AI in certain sectors may depend on regulatory considerations and ethical implications.”
Bhattacharyya added that enterprises will now integrate generative AI into their business processes in the hope of giving them a competitive edge.