Generative AI Will Become A $1.3trn Industry by 2032 – Bloomberg Research

Generative AI could become a $1.32 trillion industry by 2032, according to a Bloomberg report which suggests that in 2022, the industry generated revenues of around $40 billion – making a 42% compounded annual growth for the sector.

The report came amid concerns that AI could pose an existential threat to humanity if it is not regulated. But despite the concerns, generative AI has proved to be a disruptive force – becoming a multi-billion industry within a few months.

Bloomberg’s report broke the expected revenue down by business. It says that AI software like AI assistants, infrastructure products, and programs that speed up coding could generate $280 billion by 2032, making an annual growth rate of 69%.

According to Bloomberg’s estimates, hardware will make up the bulk of the $1.3 trillion of revenue, accounting for $641 billion by 2032, of that $641 billion, $168 billion will come from devices, and $473 will come from infrastructure.

Hardware revenue will come from AI servers, AI storage, computer vision AI products, as well as conversational AI tools, which will be worth $108 billion, the report says.

Other areas such as digital ads about AI and AI assistant software will bring in $192 billion and $89 billion respectively, according to the report.

Bloomberg’s Intelligence’s report suggests that generative AI is forecasted to make up about 10 to 12% of total IT hardware, software services, ad spending, and gaming markets by 2032, compared to less than 1% currently.

“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,” Mandeep Singh, senior technology analyst at Bloomberg Intelligence and lead author of the report said in the press release.

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

While there is growing safety concern about generative AI, the technology has recorded explosive growth. OpenAI’s ChatGPT became a darling globally soon after it was launched in November, recording more than 100 million users in just about two months.

The record, which made it the fastest-growing consumer app, was buoyed by its ability to provide contextual answers to queries, write codes and essays, and compose music.

The explosion of ChatGPT triggered a global race of generative AI, with Google launching Bard – its version and Chinese companies like Alibaba rolling out Tongyi Qianwen, its AI Chatbot. Microsoft, after investing billions of dollars into OpenAI, incorporated ChatGPT 3 into Bing, its search engine, in a bid to wrestle market share from Google.

However, the safety concern surrounding generative AI is tagging along with its growth. Elon Musk who confounded OpenAI with Sam Altman has echoed the concern that AI may end civilization if not properly regulated, a sentiment the CEOs of major AI firms like Deepmind agree with.
Both tech and world leaders are calling for the regulation of AI. A group of EU lawmakers working on AI legislation, last month, called for a global summit to find ways to control the development of advanced AI systems.