GenAI Predicted To Become A $100 Billion Industry By 2026

Between 2020 to 2023, the generative AI market witnessed a remarkable surge, skyrocketing from $5.7 billion to $44.9 billion, marking an extraordinary 690 per cent increase.

'The release of OpenAI's ChatGPT marked a turning point for the global AI industry'

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A new report predicts that Generative AI (genAI) is poised to become a $100 billion industry by 2026. According to data from AltIndex.com, there will be a substantial 65 per cent growth in the genAI market over the next two years. The report highlights the impact of OpenAI-owned ChatGPT, marking a pivotal moment for the global AI industry in 2023 as the fastest-growing app in history with 100 million users in just two months.

"The release of OpenAI's ChatGPT marked a turning point for the global AI industry. The chatbot, which became the fastest-growing app in history with 100 million users in just two months, turned artificial intelligence into one of the biggest stories in 2023," the AltIndex.com report said.

Between 2020 to 2023, the generative AI market witnessed a remarkable surge, skyrocketing from $5.7 billion to $44.9 billion, marking an extraordinary 690 per cent increase.

However, Statista anticipates a slowdown in the annual growth rate for 2024, and the overall market is projected to experience a substantial 48.4 per cent increase, reaching total a value of $66.6 billion.

The robust double-digit growth is expected to continue in the upcoming years, propelling genAI to a $100 billion valuation by 2026, reflecting a significant 65 per cent increase within two years. Projections extend to 2030, foreseeing this figure more than doubling and surpassing $207 billion.

On a global scale, the United States is poised to maintain its position as the largest genAI market, projected to reach a value of $37.3 billion in 2026, reflecting a 60 per cent increase compared to the current year. Meanwhile, as the second-largest market worldwide, China's genAI market is anticipated to experience even more significant growth, with its valuation soaring by 72 per cent to $14.7 billion in the next two years.

Meanwhile, the generative AI market in Germany is likely to see a 60 per cent increase over the next two years, reaching a valuation of $4.5 billion by 2026, as added in the report.