The State of Generative AI in 2024

Top Generative AI Statistics for 2024

In 2024, the global market size for generative AI is expected to reach USD 36.06 billion, with the US accounting for approximately USD 11.55 billion. This means the US market share is about 32.1%. The market is projected to grow at a CAGR of 46.47% until 2030.

According to a Bloomberg report, they have estimated that it could reach $1.3 trillion by 2032. Source

Bloomberg identifies Infrastructure as a Service (IaaS) as the biggest contributor, expected to contribute up to $247 billion by 2032. Combined, digital ads and generative software solutions are projected to contribute about $192 billion and $89 billion, respectively. 

North America accounts for over 40% of generative AI revenue. The primary reason for this is that major tech giants like Microsoft, OpenAI, Meta (formerly Facebook), Google, and Adobe have their headquarters here, making them leading companies in generative AI development.

McKinsey reports that generative AI could have an annual impact of $6 to $8 trillion on the global economy, which is more than the entire world's GDP in 1977.

Generative AI adoption Among Professionals

HubSpot conducted a survey called "The State of AI," gathering insights from over 1,000 marketing and advertising professionals. According to the report, 85% of marketers believe that generative content creation will be transformative.

Content creation is one of the most popular use cases of generative AI. In Hubspot’s State of AI Survey, more than 80% of marketers believe generative AI will transform content creation.

2. 56% of marketers who used AI report that content performance was improved by using generative AI.

3. Over 45% of marketers use generative AI tools for ideas and inspiration.

1. More than 75% of content marketers believe generative AI effectively makes content more personalized.

2. For 60% of marketers, bias, plagiarism, and factual accuracy are still concerns about generative AI.

3.  65% of generative AI users are millennials or Gen Z 
4. 70% are employed and actively using this technology.  (Source)
5. Another interesting finding is that users are now relying on generative AI more than when they first started. (Source).
6. Out of five workers, three are either using AI or planning to use it. 

73% of respondents mentioned security risks associated with AI.

However, when looking at the opinions of C-suite professionals and IT professionals, the majority (57%) believe that AI has transformative power. 

1. For over 60% of IT leaders, integrating AI into the business within the next 18 months is a top priority. 

2. For 33%, AI is the number one priority for their business.

3. 71% feel generative AI is expected to bring new security threats to their data.
4. 66% feel their employees lack the necessary skills to use it effectively. 
5. 60% believe that generative AI currently cannot integrate with their business's technology stack. 
6. 59% indicate that their organization lacks a cohesive data strategy.

Despite that, 7 in 10 marketers said their employer does not yet provide generative AI training.

Top Generative AI Concern Among Marketers 

1. Accuracy and quality (31%)

2. trust (20%)

3. skills (19%)

4. job safety (18%). 

When looking at the use of generative AI by demographics, India ranks at the top, followed by Australia, the US, and the UK. [SalesForce]

Investment in Generative AI

If we talk about those who are already using AI, 84% of surveyed users had a positive response towards it. They said it helped them increase sales and speed up customer interactions.

For sales provision, the most common uses of AI have been content creation, market analysis, and automating personalized sales communication. 

In our third report, we did a detailed study of the McKinsey survey. McKinsey's surveys provided some common insights, especially regarding the adoption of generative AI in organizations.

The report shows that 65% of organizations are regularly using AI. In this regular use, at least one business function is involved, which includes marketing and sales.

Two out of three organizations surveyed by Deloitte reported experiencing benefits from using AI.

Related Articles: Generative AI in Business: Benefits and Integration Challenges

Adoption and Trust in Generative AI

1. 64% of executives want to adopt generative AI (Google).

2. 27.2% of companies don’t trust generative AI outputs (AI Accelerator Institute).

There are some barriers to adopting generative AI, as highlighted in a Deloitte report that surveyed key challenges.

First, 36% of respondents expressed worries about regulatory compliance. Then, 30% mentioned difficulties in managing risks. Additionally, 29% pointed to a lack of a governance model.

Other barriers include implementation challenges, a lack of adoption strategy, and difficulties in identifying use cases, among others. 

The Technology, Media & Telecom industry and Government & Public Services sector demonstrate the highest level of GenAI expertise. 

All industries are increasing their investment in GenAI initiatives, with the Government & Public Services sector showing the most significant increase.

The Financial Services and Life Sciences & Health Care sectors have made the most progress in scaling up their GenAI experiments, with 79% and 72% respectively. 

The Government & Public Services sector is the most prepared in terms of risk and governance. 

Data-related challenges are slowing GenAI efforts across all industries.  - Deloitte Surve

1. 45% of organizations are piloting generative AI programs (Gartner).

2. 37% of the US marketing and advertising industry has adopted generative AI (Statista).

Investment Trends

1. Investment in generative AI increased by 118% from 2022 to 2023 (S&P Global).

2. Total investment in generative AI increased by 407% from 2022 to 2023 (CB Insights).

3. Investment in AI could reach $200 billion by 2025 (Goldman Sachs).

4. 43% of US companies generating at least $1 billion annually plan to invest significantly in generative AI (KPMG/WSJ).

Future Projections

When we look at the future adoption of generative AI, it’s expected to add trillions of dollars to the global economy. Many reports suggest that AI will play a significant role in content marketing and app development. According to predictions from various agencies, in the coming years, half of all professions are likely to adopt it.

Industry Impact

1. 75% of professionals expect generative AI to cause significant changes in industry competition over the next three years (McKinsey).

2. Marketers believe generative AI will save them an average of five hours of work per week (Salesforce).

3. 80% of women work in fields vulnerable to automation compared to 58% of men (Kenan Institute).

4. 70% of respondents reported that their organizations have transitioned 30% or fewer of their Generative AI experiments into production. - Deloitte 

5. Forty-one percent of organizations have found it challenging to define and measure the specific impacts of their generative AI initiatives. - Deloitte

Copyright and Ethical Concerns

89.2% of artists believe current copyright laws are inadequate to protect them from exploitation by generative AI (Book An Artist).

Market Growth

The generative AI market is projected to reach $36.06 billion in 2024, with a CAGR of 46.47%, reaching $356.10 billion by 2030 (Statista).

More than four in ten companies have faced difficulties in quantifying the precise outcomes of their generative AI initiatives.

North America leads in GenAI revenue, holding 40.2% of the global share (Grandview Research)

Generative AI Market Growth

• The market size in the Generative AI market is projected to reach US$36.06bn in 2024.

• The market size is expected to show an annual growth rate (CAGR 2024-2030) of 46.47%, resulting in a market volume of US$356.10bn by 2030.

• In global comparison, the largest market size will be in the United States (US$11.66bn in 2024).

Key takeaways

When we talk about market growth, we can expect a lot of investment in generative AI in the coming time. This technology is becoming quite popular among marketers and sales professionals.

Major industry leaders are showing a very positive response to AI. On one hand, this technology appears to be maturing, but on the other hand, there are still many concerns surrounding it.

Furthermore, it’s evolving at a breakneck pace. In 2024, it hit a whopping $36.06 billion. If we analyze these trends, it seems not just a “passing trend.”

If we talk about its popularity, it is quite popular among marketers and sales professionals. All these factors make it a top choice among visionaries exploring options to innovate. Furthermore, marketers also found it a “time-saver” technology. While many others found it helped in making their content more effective. 

Investment in generative AI is skyrocketing, with a 118% increase from 2022 to 2023. As major tech companies innovate, the global economic impact could reach $4.4 trillion annually. Looking ahead to 2024, understanding generative AI's nuances will be essential for professionals eager to harness its benefits. 

Looking to build an AI solution? Partner with us to develop a custom AI solution. We specialize in AI/ML development services, serving industries like finance, media and entertainment, healthcare, and more. Let's work together to build innovative solutions that drive your business forward.

The findings and statistics presented in this blog post are sourced from various external sources. While we strive for accuracy, these figures do not necessarily reflect our own research or findings. We encourage readers to verify the information and consult the original sources for more detailed insights.

The findings and statistics presented in this blog post are sourced from various external sources. While we strive for accuracy, these figures do not necessarily reflect our own research or findings. We encourage readers to verify the information and consult the original sources for more detailed insights.