ChatGPT to fuel $1.3 trillion AI market by 2032

New York: The release of consumer-focused artificial intelligence systems like OpenAI’s ChatGPT and Google’s Bard will fuel a decade-long boom, with the market for generative AI reaching $1.3 trillion in 2032 from $40 billion last year.

The compound annual growth rate for the sector over the next ten years could expand by 42 per cent, driven first by training infrastructure and then inference devices for large language models, advertising and other services, according to a new report by Bloomberg Intelligence analysts led by Mandeep Singh.

“The world is poised to see an explosion of growth in the generative AI sector over the next ten years that promises to fundamentally change the way the technology sector operates,” Singh said in a statement Thursday. “The technology is set to become an increasingly essential part of IT spending, ad spending and cybersecurity as it develops.”

Demand for generative AI has accelerated since ChatGPT’s release late last year, as the technology is expected to disrupt everything from customer service to banking. It uses large samples of data, often harvested from the internet, to learn how to respond to prompts, allowing it to create realistic-looking images and answers to queries that appear to be from a real person.

Amazon.com’s cloud division, Google parent Alphabet, Nvidia Corp. and Microsoft Corp., which has invested billions of dollars in OpenAI, are likely to be among the biggest winners from the AI boom, according to the report.