Generative AI is on a trajectory similar to the early days of the internet, smartphones, and social media, with substantial growth anticipated in the coming years. Just two months post its November 2022 debut, ChatGPT garnered over half of the AI social media spotlight, amassing 100 million users. The first quarter of 2023 saw three companies in the generative AI space attain unicorn status, each boasting valuations exceeding $1 billion. Major tech and B2B SaaS entities are also embracing generative AI, incorporating it into their primary services.
Forrester anticipates a remarkable 36% average annual growth rate for generative AI until 2030, at which point it will command 55% of the AI software market. This surge is expected to be fueled by:
By 2030, industries such as security, health, and content marketing will be investing $79 billion annually in specialized applications to enhance automation and productivity. Tools like GitHub Copilot and Replit are democratizing software development, while companies like Cera leverage generative AI to simplify complex medical information through visual content.
General-purpose applications, including research and writing aids, will attract $42 billion in annual investments by 2030. Over half of this amount will be directed towards chatbots and communication platforms, enhancing both customer and employee experiences. Innovations in this sector include Twilio’s use of generative AI to refine sales and marketing dialogues and Duolingo’s introduction of a GPT-4 powered chatbot in its “Max” subscription tier.
New Business Revenues:
Generative AI is poised to unlock fresh revenue streams, even for firms not actively utilizing it for automation or product development. Stack Overflow plans to monetize access to its Q&A repository for AI developers, and NVIDIA saw its stock price triple in early 2023 due to the demand for its GPU chips in training models like GPT-4.
Despite the optimistic outlook, Forrester warns of potential roadblocks, including regulatory uncertainties, ethical concerns, and issues related to intellectual property rights. However, the firm believes that generative AI will overcome these hurdles, revolutionizing the job market and altering the work landscape significantly by 2030. It is projected to account for a majority of automation-induced job losses in several sectors, while also transforming the nature of many other roles.