S&P Global – Big Picture GenAI, 2024

Generative AI, a technology that gained significant attention in 2023, has sparked conversations and prompted governments to reconsider their technology strategies. The release of OpenAI's ChatGPT interface in November 2022 even led to some predicting the end of humanity. This development also created a surge in the demand for high-performance chips, which are used to run AI workloads, resulting in a substantial increase in market capitalization for NVIDIA, the dominant player in the GPU market. According to S&P Global Market Intelligence's 451 Research Market Monitor, the software segment of the generative AI market is projected to be worth $3.7 billion in 2023 and is expected to reach $36.36 billion by 2028, with a compound annual growth rate of almost 58%. When considering the physical infrastructure required to support the software, such as cloud and on-premises equipment, the total market size for generative AI is much larger. Generative AI has also captured the attention of business leaders, who are concerned about falling behind their competitors and are considering the adoption of this new and relatively untested technology. The overall impact of generative AI on the economy is uncertain, but it is likely to have significant effects in various areas.