Generative AI to Become a $1.3 Trillion Market by 2032, Research Finds

…generative AI across technology may displace a number of incumbents across that vendors set to benefit from generative AI; including semiconductors, hardware, cloud software, IT services and ad companies.

Mandeep Singh, Senior Technology Analyst at Bloomberg

Bloomberg Intelligence: New Report Finds That the Emerging Industry Could Grow at a CAGR of 42% Over the Next 10 Years

Rising demand for generative AI products could add about $280 billion of new software revenue

New York, June 01, 2023 — With the influx of consumer generative AI programs like Google’s Bard and OpenAI’s ChatGPT, the generative AI market is poised to explode, growing to $1.3 trillion over the next 10 years from a market size of just $40 billion in 2022, according to a new report by Bloomberg Intelligence (BI). Growth could expand at a CAGR of 42%, driven by training infrastructure in the near-term and gradually shifting to inference devices for large language models (LLMs), digital ads, specialized software and services in the medium to long term, BI’s research finds.

Moreover, rising demand for generative AI products could add about $280 billion of new software revenue, driven by specialized assistants, new infrastructure products, and copilots that accelerate coding. Companies like Amazon WebServices, Microsoft, Google and Nvidia could be the biggest beneficiaries, as enterprises shift more workloads to the public cloud.