The sector could expand at a rate of 42% over ten years — driven first by the demand for infrastructure necessary to train AI systems and then the ensuing devices that use AI models, advertising and other service (AFP)

Report Predicts ChatGPT to be a Major Contributor to the $1.3 Trillion AI Market by 2032

Febin MathewJune 3, 23 AI, Artificial Intelligence, ChatGPT

The market for generative AI is expected to experience a significant boost over the next decade, driven by the introduction of consumer-oriented AI tools like ChatGPT and Google’s Bard. This growth is projected to result in a revenue surge from $40 billion in 2021 to an estimated $1.3 trillion by 2032.

According to a recent report by Bloomberg Intelligence analysts, led by Mandeep Singh, the industry has the potential to grow by 42% over the next decade. This growth will be fueled by the need for infrastructure to train AI systems, followed by the development of AI-based devices, advertising, and other services.

“The world is poised to witness explosive growth in the generative AI sector over the next 10 years, which promises to fundamentally change the way the technology sector operates,” Singh said in a statement on Thursday. “Technology will continue to become a more important part of IT costs, advertising costs and cyber security as it evolves.”

Demand for generative AI has grown around the world since ChatGPT launched late last year, and the technology is poised to disrupt everything from customer service to banking. It uses large samples of data, often collected from the Internet, to learn how to respond to prompts, allowing it to generate realistic-looking images and responses to queries that appear to come from a real person.

The cloud division of Amazon.com Inc. and Alphabet Inc., as well as Nvidia Corp. and Microsoft Corp., which has invested billions of dollars in OpenAI, is one of the biggest winners of the AI boom, according to a report.

Bloomberg Intelligence forecasts that the biggest driver of generative AI revenue growth will come from demand for the infrastructure needed to train AI models, which will reach $247 billion by 2032. AI-powered digital advertising is expected to reach $192 billion. According to the report, by 2032 annual revenue from AI servers could reach $134 billion.

Meanwhile, investors stopped teasing all things artificial intelligence on Thursday. Software company C3.ai fell as much as 24% in New York, extending Wednesday’s 9% decline following a disappointing sales forecast.

Chipmaker Nvidia, which has emerged as Wall Street’s biggest artificial intelligence bet, continued its gains, rising 3.3 percent. Its shares are up 28% since May 24, and the Silicon Valley company briefly hit a $1 trillion valuation this week.