The Rise of Generative AI: Revolutionizing Industries, Unleashing a $909 bn Transformation by 2030

GlobalData’s webinar on the disruptive potential of generative AI provided an in-depth analysis of the key trends shaping the realms of regulation and business.

GlobalData Research Director Josep Bori predicts that the artificial intelligence (AI) market will reach a value of $909 billion by 2030. This growth will be driven by a compound annual growth rate of 35% between 2022 and 2030. Bori shared these insights during a GlobalData webinar focused on the disruptive potential of generative AI, which took place on October 3rd.

Generative AI, a type of technology capable of generating new written, visual, and audio content based on trained inputs, was a key topic of discussion during the webinar. The most widely recognized example of generative AI is the ChatGPT chatbot, which is based on a large language model.

In the development of generative AI, GlobalData analysts have identified four phases. Currently, generative AI is in the first phase, characterized by an accuracy estimate below 80% and relatively limited reliability. Over the next one to five years, the technology is expected to progress into the second phase, marked by reduced instances of generating false or nonsensical information, also known as “hallucinations.” Achieving up to 99% accuracy and reliable common sense and planning capabilities is projected for the next 10 to 30 years, in the third phase of development. The fourth and final phase will see generative AI reaching human-level capabilities in terms of sentience and translation.

Generative AI in various industries

Generative AI, with its wide-ranging applications, has the potential to transform various industries such as software development, media, healthcare, and more. Notably, NASA and NVIDIA have explored novel applications of generative AI, leveraging it in the construction of spaceships and drug development respectively.

In the past five years, GlobalData’s analysis has revealed an impressive compound annual growth rate of 83% for patent filings related to generative AI. This statistic attests to the increasing interest and investment in this field.

One significant use case of generative AI is its ability to support coding and application development. GlobalData’s research highlights that application development ranked as the top patent application area during the same period, with approximately 33% of patents in this sector related to generative AI for coding purposes. Tech giants like Google and IBM have been actively utilizing generative AI to generate code and aid developers in their work. This highlights the potential of generative AI to enhance software development processes.

Overall, generative AI holds tremendous promise, and its impact on various industries is expected to continue growing as new applications and advancements emerge.

Investment in generative AI

In recent times, there has been a surge of acquisitions and venture funding in generative AI by prominent technology companies like Microsoft, Amazon, Nvidia, Meta, and Google. Among them, Microsoft has been particularly active in these domains.

Generative AI is growing rapidly and is expected to affect businesses in every sector. However, there are still unanswered questions about its long-term impact. Can we resolve issues like ‘hallucinations’? Will scaling up language models lead to artificial general intelligence? We also need to consider the environmental impact of this technology.