Artificial Intelligence Market Trends

Global IT Market Trends

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2024: Eight trends in artificial intelligence

The global artificial intelligence market continues to develop rapidly, and the scope of application of relevant technologies is constantly expanding. At the same time, AI startups increase revenue faster than traditional software developers. This is stated in a study by Air Street Capital, the results of which were published on October 10, 2024.

There is growing concern among some investors that the hype around AI could turn into a bubble, with many businesses yet to decide how to best use such technology. However, an analysis by the fintech company Stripe indicates that successful AI startups reach an annual income of $30 million or more on average in 20 months. For comparison: for ordinary SaaS providers (software as a service), this takes an average of 65 months, that is, three times more time. And AI companies, founded in 2020 and later, reach revenue of $1 million on average in 5 months versus 15 months for startups in the SaaS segment.

In 2024, the United States accounted for the largest number of published works in the field of AI - approximately 29.5% of all articles. China is in second place with a share of about 23.6%. Development in the field of AI is actively underway in all regions of the world. Against this background, analysts at the London investment company Air Street Capital highlight eight main trends in the relevant area.

1. Leading AI developers are developing at a similar pace, and their models become comparable in performance and capabilities to each other. As a consequence, the gap between GPT-4 and other solutions is narrowing.

2. The next generation of large language models (LLMs) are prioritized by reasoning and planning functions. In order to create new AI agents, companies are exploring opportunities to combine LLM with approaches such as reinforcement training, evolutionary algorithms and self-improvement.

3. Basic AI models go beyond speech and text processing. They are able to work with different data formats in fields such as mathematics, biology, genomics, physical sciences and neurotechnology.

4. US sanctions have limited impact on the ability of Chinese companies to develop effective AI models. This is due to the availability of stocks of high-performance chips, smuggling and access to cloud resources. At the same time, analysts emphasize, it is not clear whether the desired result will bring the efforts of the PRC to create its own semiconductor industry.

5. The total value of AI companies as of 2024 reached $9 trillion. Investment in private AI enterprises has also risen, but not so significantly, despite the success of a number of generative AI projects in the American market.

6. Some AI companies are starting to get serious revenue. We are talking about developers of basic models and startups, whose tools are designed to generate audio and video materials.

7. Individual companies are struggling to find a viable business model in a highly competitive AI market. Due to lack of funds, they are forced to use the pseudo-acquisition mechanism of another organization.

8. Discussions on the existential risks of AI have subsided - especially after the failed coup at OpenAI. However, researchers continue to explore potential model vulnerabilities and ways to abuse them, offering security solutions and methods.^[1]

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