Generative AI Market Doubles in 2024, Poised to Surpass $100 Billion by 2028

The generative AI market witnessed a remarkable surge in 2024, doubling in size and attracting substantial investments, signaling a turning point for the industry. According to the latest report by Sopra Steria Next, a leading consultancy within the Sopra Steria Group, the generative AI sector is now on track to exceed $100 billion by 2028.

2024: A Year of Technological Acceleration

The year 2024 marked a critical phase for generative AI, characterized by significant technological advancements and unprecedented investment levels. Despite this growth, the journey toward large-scale deployment remains challenging for many companies. Although generative AI solutions have proliferated, only 22% of large companies have successfully deployed them at scale, highlighting the gap between experimentation and practical integration.

Sopra Steria Next’s study, “Generative AI: From Exploration to Impact,” reveals the ongoing challenge companies face in moving from proof-of-concept (POC) stages to robust global deployments. Despite the emergence of numerous generative AI prototypes, only 1 in 5 companies has managed to scale their first use cases. The report underscores that while the technology is advancing rapidly, achieving widespread adoption is still a significant hurdle.

Key Findings from the Sopra Steria Next Study:

• Generative AI market growth has accelerated in 2024, with major tech players ramping up investments in AI infrastructure and GenAI labs. Companies like Nvidia have seen a surge in demand for their GPUs, essential for AI computing power.
• Generative AI adoption remains in its early stages, with 22% of large companies having deployed AI at scale. Many businesses are still stuck in the POC phase, struggling to mature their initiatives.
• The market projection for generative AI is confirmed to reach $100 billion by 2028, with a sharp increase in both demand and applications across industries.

Technological Dynamism Meets Deployment Struggles

Fabrice Asvazadourian, CEO of Sopra Steria Next, commented on the technological dynamism and contrast within the generative AI landscape. “2024 stands out as a year of contrast: on one hand, there is technological dynamism and a wealth of AI solutions; on the other, companies are still striving for maturity to fully embrace this revolution. The path is set, but widespread adoption remains a challenge,” he said. Asvazadourian emphasized that simply experimenting with AI is no longer enough. Companies must now focus on integrating solutions and prioritizing their impact on business processes.

2025: The Year of Global Deployments

The report further highlights 2025 as a pivotal year for generative AI. Companies must transition from small-scale experiments to global deployments to unlock the true potential of these solutions. With major players such as Amazon, Stargate, and Meta continuing to make large-scale investments, the infrastructure for AI is expanding rapidly, paving the way for future growth and integration.

In conclusion, while the generative AI market is set for monumental growth, businesses must overcome several challenges to harness its full potential. The year 2024 has marked a significant step forward, but it is in 2025 that companies will need to focus on maturity, integration, and scalability to transform technological momentum into tangible business results. The continued investments in AI infrastructure will play a crucial role in shaping the future of this dynamic market.