Global Enterprise Generative AI Market Report 2024

The enterprise generative AI market size has grown exponentially in recent years. It will grow from $2.38 billion in 2023 to $3.33 billion in 2024 at a compound annual growth rate (CAGR) of 39.7%. The historical period's growth can be credited to factors such as the advancement of deep learning technologies, the escalation in computing power, the emergence of generative adversarial networks, the proliferation of open-source initiatives, and substantial contributions from research and academic communities.

The enterprise generative AI market size is expected to see exponential growth in the next few years. It will grow to $12.81 billion in 2028 at a compound annual growth rate (CAGR) of 40%. The forecast period's growth is anticipated to be driven by the development of explainable AI methodologies, the expansion of edge computing capabilities, the growing importance of synthetic data generation techniques, the broadening scope of quantum computing applications, and heightened attention to regulatory and ethical considerations surrounding AI deployment. Key trends expected in the forecast period encompass diversification into new industries, advancements in multimodal AI capabilities, a heightened focus on ethical AI practices, the emergence of AI-as-a-service models, and the adoption of real-time adaptive learning techniques.

The surge in new startups is poised to drive the future growth of the enterprise-generative AI market. Startups, characterized by their recent establishment and rapid growth, often founded by entrepreneurs with innovative ideas or solutions, are on the rise due to increased accessibility to funding, a burgeoning culture of entrepreneurship, evolving market demands, and the trend towards remote work. These startups harness enterprise-generative AI to swiftly produce creative content and prototypes, fostering innovation and expediting product development cycles while minimizing resource investments and enhancing competitiveness in dynamic markets. For instance, based on a report from the Economic Innovation Group in September 2023, the rate of business startups in the US, indicating the proportion of all firms established each year, surged to 8.9% in 2021. Furthermore, over 476,000 new startups emerged, marking nearly a 5% increase compared to pre-pandemic levels. Consequently, the uptick in new startups propels the expansion of the enterprise generative AI market.

Key players in the enterprise generative AI market are prioritizing the development of technologically advanced solutions, such as generative AI product suites, to gain a competitive edge. A generative AI product suite comprises a set of software tools and solutions driven by generative artificial intelligence algorithms. For instance, in January 2023, C3.AI Inc., a US-based technology company, introduced the C3 Generative AI Product Suite. Engineered to integrate the latest AI capabilities from entities such as OpenAI, Google, and academia, along with cutting-edge models such as ChatGPT and GPT-3, into C3 AI’s enterprise AI products, this suite aims to streamline business functions and industries across sectors such as supply chain, aerospace, oil and gas, healthcare, financial services, and defense and intelligence. By amalgamating the potency and versatility of the well-established C3 AI Platform with the latest advancements in large language models (LLMs), the suite promises unparalleled capabilities.

In April 2024, DataStax Inc., a US-based provider of data management solutions for enterprises, acquired Langflow for an undisclosed sum. This strategic move underscores DataStax's commitment to furnishing enterprises with a comprehensive, user-friendly solution for constructing and deploying generative AI applications at scale. Langflow, headquartered in Brazil, specializes in enterprise-generative AI solutions, complementing DataStax's vision and capabilities in this burgeoning field.

Major companies operating in the enterprise generative AI market are Google LLC, Accenture Plc, International Business Machines Corporation, PricewaterhouseCoopers International Limited, Oracle Corporation, Capgemini SE, McKinsey & Company, Klaviyo Inc., Scale AI Inc., C3.ai Inc., Smartly.io Inc., DataRobot Inc., Prophecy Labs Inc., Coveo Solutions Inc., Bubble Group Inc., Grammarly Inc., Jasper.ai Inc., Aisera Inc., Kensho Technologies Inc., OpenAI Technologies Inc., Mix book Inc., Lily AI Inc., Cohere Technologies Inc., Test Fit Inc., Symbl.ai Inc.

North America was the largest region in the enterprise generative AI market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the enterprise generative ai market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the enterprise generative ai market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Enterprise generative AI involves leveraging generative artificial intelligence technologies within business and organizational settings to enhance processes, improve efficiency, and foster innovation. It harnesses advanced algorithms and machine learning techniques to automate content generation, augment data analysis with synthetic data, facilitate creative design processes, personalize customer experiences, detect anomalies, and optimize business operations and decision-making.

The primary components of enterprise generative AI consist of software and services. Software encompasses programs, applications, and platforms that empower businesses to develop, deploy, and manage AI models and solutions. These software solutions encompass various types of models, including text, image or video, audio, and code. They find application across diverse business functions such as marketing and sales, customer service, product development, and supply chain management. Enterprise generative AI is utilized by numerous industries including information technology and telecommunications, BFSI (banking, financial services, and insurance), retail and e-commerce, healthcare, manufacturing, media and entertainment, among others.

The enterprise generative AI market research report is one of a series of new reports that provides enterprise generative AI market statistics, including enterprise generative AI industry global market size, regional shares, competitors with a enterprise generative AI market share, detailed enterprise generative AI market segments, market trends and opportunities, and any further data you may need to thrive in the enterprise generative AI industry. This enterprise generative AI market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The enterprise generative AI market includes revenues earned by entities by providing services such as content generation services, conversational ai services, design and prototyping services, and personalization services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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