Generative AI market set to hit $1 trillion by 2031

GCC countries expected to rake in about $23.5 billion in economic benefits

by

Issac John

  • Follow us on
  • google-news
  • whatsapp
  • telegram

Top Stories

Published: Mon 8 Jan 2024, 9:00 PM

Last updated: Mon 8 Jan 2024, 9:01 PM

The global generative artificial intelligence (AI) market is poised to hit $1.0 trillion by 2031 with the GCC region, led by the UAE and Saudi Arabia, becoming a key contributor.

According to an analysis by stocklytics.com, the generative AI market will record a compound annual growth rate of 48.5 per cent globally with tech giants Amazon, Microsoft, Google, and Nvidia envisioning the most gains from such exponential growth.

“The launch of AI tools like ChatGPT aroused an intense buzz around automation and chatbot technology. Soon enough, the domain saw a flooding increase in its tools, boosting its market share and popularity ratings. ChatGPT remains the most successful AI tool, commanding a massive user base of over 180.5 million users and up to 1.7 billion visits in November 2023,” says Edith Reads, stocklytics.com’s financial analyst.

Generative AI is expected to hold immense economic potential. GCC countries, for instance, are expected to rake in about $23.5 billion in economic benefits as investments in it continue to grow, PwC unit Strategy& Middle East said in a report.

With innovation playing a key role in shaping future enterprises, 59 per cent of UAE business leaders say their investment in advanced technology will increase, and 82 per cent, while 45 per cent state they will invest in advanced technologies such as AI to respond to the changing market environment, according to a study “Defining the Enterprise of the Future” by Alteryx.

Worldwide, the larger AI market is also receiving positive reinforcements, with countries like China and India controlling about 60 per cent of its consumption worldwide. The two countries are the best markets for this growing technology due to their massive market base, with the largest population worldwide, Reads said.

The US is still the leading country regarding AI influence and investments. Since 2013, the US has poured $250 billion into artificial intelligence start-ups. Generally, the AI market will see explosive growth in multiple industries globally in the coming years. Currently, about 80 per cent of businesses are using or exploring artificial intelligence. Among them, 35 per cent have already adopted it into their operations, while 42 per cent plan to implement it. Projections are that the more significant economic gains will result in China’s 26 per cent boost and North America’s 14.5 per cent by 2030. India is expected to witness an astounding growth of up to $3,935.5 million by 2028, resulting in a grander profit scale for the entire AI market, stocklytics.com report said.

According to a Statista survey, the generative AI industry is expected to grow 48 per cent year-over-year and hit $66.6 billion in 2024. By 2028, this figure will jump over $156 billion, showing a massive 250 per cent growth in five years.

ChatGPT, the most popular AI tool reached over 180 million users and dominated headlines around the globe. In line with this huge public interest, the English Wikipedia ChatGPT article hit between 100,000 and 400,000 page views almost every day, bringing the 2023 total to a whopping 49.4 million page visits. This huge number is even more impressive when compared to other trending Wikipedia topics in 2023, according to analysts.

Statistics show that ChatGPT was more popular last year than the world`s highest-paid athlete, Cristiano Ronaldo, or blockbuster movies Oppenheimer and Barbie. The two movies got 28.3 million and 18 million page views in 2023, respectively, while the Cristiano Ronaldo article was clicked 17.4 million times.

“The consumer appeal is a central propeller for the increased interest in AI tools. The new technological developments are a massive wormhole for users. For instance, the use of AI to develop self-driving vehicles and incorporate large language models caught the attention of many consumers,” technology experts said.

Globally, the self-driving car market is expected to bloom exponentially to about 13.7 billion by 2030, with almost 10 per cent of vehicles being driverless. The significant language models will generate about $247 billion for the AI domain by 2032.


More news from Business