ChatGPT, Google’s Bard to fuel AI market boom worth $1.3 trillion

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The release of consumer-focused artificial intelligence tools such as ChatGPT and Google’s Bard is set to fuel a decade-long boom that grows the market for generative AI to an estimated $1.3 trillion in revenue by 2032 from $40 billion last year.

The sector could expand at a rate of 42 percent over ten years — driven first by the demand for infrastructure necessary to train AI systems and then the ensuing devices that use AI models, advertising, and other services, according to a new report by Bloomberg Intelligence analysts led by Mandeep Singh.

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“The world is poised to see an explosion of growth in the generative AI sector over the next ten years that promises to fundamentally change the way the technology sector operates,” Singh said in a statement Thursday.

“The technology is set to become an increasingly essential part of IT spending, ad spending and cybersecurity as it develops.”

Demand for generative AI has boomed worldwide since ChatGPT’s release late last year, with the technology poised to disrupt everything from customer service to banking. It uses large samples of data, often harvested from the internet, to learn how to respond to prompts, allowing it to create realistic-looking images and answers to queries that appear to be from a real person.

Amazon.com Inc.’s cloud division, Google parent Alphabet Inc., Nvidia Corp. and Microsoft Corp., which has invested billions of dollars in OpenAI, are likely to be among the biggest winners from the AI boom, according to the report.

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