Generative AI Set to Transform Global Markets by 2029
San Francisco, Tuesday, 18 February 2025.
Generative AI is predicted to significantly boost productivity and innovation worldwide across various industries from 2024 to 2029, with key players like Katonic AI and Dataiku leading the charge.
Market Growth and Key Players
According to a comprehensive market report released today, the generative AI implementation platforms sector is poised for substantial expansion between 2024 and 2029 [1]. The industry is witnessing the emergence of prominent vendors including Katonic AI, Scale AI, Databricks, and Dataiku, who are addressing critical challenges such as cost management, integration with legacy systems, and data security [1]. This transformation is particularly evident in the banking sector, where the IBM Institute for Business Value reports that while only 8% of banks systematically developed the technology in 2024, 78% were already using it tactically [2].
Cloud Infrastructure and AI Investment
The impact of generative AI on cloud infrastructure has been remarkable, with global enterprise spending reaching US$91 billion in Q4 2024, marking a significant US$17 billion increase from the previous year [4]. According to Synergy Research Group’s Chief Analyst John Dinsdale, generative AI has been responsible for at least half of the increase in cloud service revenues since ChatGPT’s launch [4]. The travel industry is similarly embracing this technology, with 46% of companies citing generative AI as their top priority for the coming year, rising to 61% in the Asia Pacific region [3].
Financial Impact and Market Adoption
The financial services sector is experiencing particularly strong adoption, with the multimodal AI market valued at USD 1.6 billion in 2024 and projected to grow at a CAGR of 32.7% from 2025 to 2034 [7]. Major tech companies are demonstrating their commitment to AI development, with Meta, Amazon, Alphabet, and Microsoft planning to allocate up to USD 320 billion combined, an increase from USD 230 billion in 2024 [7]. The market is seeing rapid user adoption, with AI tool users expected to reach 729.1 million by 2030 [7].
Industry Challenges and Future Outlook
Despite the optimistic growth trajectory, the industry faces several key challenges. These include data privacy concerns, security considerations, and the need for seamless integration with existing systems [1]. The banking sector is particularly focused on these issues, with 60% of surveyed CEOs acknowledging that accepting certain levels of risk is necessary to leverage automation benefits [2]. As the market continues to evolve, companies are increasingly moving from pilot projects to broader execution strategies, with a particular emphasis on improving operational efficiency and customer experience [2].