Generative AI (Gen AI) has come a long way. In simple words, Gen AI is an artificial intelligence that describes machine learning systems capable of generating text, images, and other types of content. Tech companies are at the forefront when it comes to gen AI.
It is said that gen AI will add value equivalent to as much as 9% of global industry revenue—knowledge-based industries such as banking going up to 5%, pharmaceuticals, and medical products are also up to 5%, and education which is up to 4%, could experience significant effects as well.
Gen AI’s ability to continuously improve its performance and decision-making capabilities through the use of sophisticated machine learning algorithms and neural networks is what makes it different
Gen AI is a revolutionary technology that will keep booming globally and in India. It’s remarkable to see the emergence of such brilliant technological methods and use cases. It’s undeniably evolving at a rapid pace. While it may seem like an overload of Gen AI sometimes, for all we know, Gen AI is here to stay.
Evolution of Gen AI
Gen AI is a significant breakthrough since it can process, assess, and learn from data. Gen AI’s ability to continuously improve its performance and decision-making capabilities through the use of sophisticated machine learning algorithms and neural networks is what makes it different. Gen AI can be easily incorporated into business operations to elevate or leverage the existing process.
Smarter, Faster, and Better
Gen AI has all the intelligent systems needed to uplift any business operations. While some might claim that it has the power to replace humans, it’s not really that true. Such state-of-the-art technologies can never replace humans as they are built with the purpose of leveraging existing skills and operations.
How is Gen AI Impacting the Startup Ecosystem?
When ChatGPT came in 2022, it was extremely fascinating to see such technology. It had immense power and potential to bring a change. Over the last decade, terms like artificial intelligence and machine learning have been gaining a lot of attraction. ChatGPT raised a lot of curiosity about the things it could do. Coming to its use case in the startup ecosystem, it made everyone excited to see how it can be used in this dynamic and ever-changing ecosystem.
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Globally, gen AI startups have raised more than $2.5 billion in private investments in 2022, which was almost 3% of the overall private investments in AI globally. Isn’t it amazing? Looking at gen AI startups in India, they have raised more than $590 million in private investments, and around 70% of all funding raised as of 2022.
It’s great to see that the adoption rate of gen AI is rising globally. In fact, Gen AI reached around 100 million users just 2 months after the launch of ChatGPT. Startups are able to maximize their outputs with gen AI, for instance, chatbots are becoming more common in the customer service industry, giving an effective way to interact with clients and other target audiences so that they can instantly respond.
Moreover, gen AI has also created predictive analytics tools that make it easier for entrepreneurs to foresee consumer behavior, industry trends, and other dynamics. India is home to over 100 gen AI startups who have raised over $600 million in 2019. As India stands third as the emerging startup ecosystem and the global center for technology, there is a lot of potential for gen AI to boom. Gen AI has helped several startups in fulfilling their business goals and in scaling up.
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The global average market size of Gen AI is around 43.87 billion in 2023 and it is said that the market will reach $1.3 trillion by 2032. On the other hand, since there is an uptick of gen AI startups, one needs to stay competitive. In order to stand out, one needs to focus on building a brand that resonates with the audience. One needs to identify the need for it in the market. There are endless possibilities and applications of Gen AI. We have only seen a quarter of it. More is yet to come.
What’s the Future?
Companies can soon come up with human-AI collaboration which could be exciting. There will be multiple use cases of gen AI and continue to transform technology to new levels. Really looking forward to how gen AI will grow and penetrate across different industries.
Guest contributor Nikhil Parmar is the Founder of Impactful Pitch, a platform that helps startups in their fundraising journey. Any opinions expressed in this article are strictly those of the author.
