Generative AI: What Is It, Tools, Models, Applications and Use Cases

Existing AI service providers are expected to evolve their capabilities to serve the generative AI market. While generative AI will likely affect most business functions over the longer term, our research suggests that information technology, marketing and sales, customer service, and product development are most ripe for the first wave of applications. The breakneck pace at which generative AI technology is evolving and new use cases are coming to market has left investors and business leaders scrambling to understand the generative AI ecosystem. While deep dives into CEO strategy and the potential economic value that the technology could create globally across industries are forthcoming, here we share a look at the generative AI value chain composition.

For instance, in March 2023, Microsoft Corporation, a technology company in the U.S., launched a model, Visual ChatGPT, which comprises multiple visual foundation models and enables users to interact with ChatGPT through graphical user interfaces. Generative AI refers to a branch of artificial intelligence (AI) that focuses on generating new content, such as images, videos, music, or text. Unlike traditional AI models that are designed for classification or prediction tasks, generative AI models aim to create new content that is not explicitly present in the training data.

Generative AI — Creative AI of the Future

Generative AI–enabled synthesis could provide higher-quality data insights, leading to new ideas for marketing campaigns and better-targeted customer segments. Marketing functions could shift resources to producing higher-quality content for owned channels, potentially reducing spending on external channels and agencies. Meanwhile, the way the workforce interacts with applications will change as applications become conversational, proactive and interactive, requiring a redesigned user experience. In the near term, generative AI models will move beyond responding to natural language queries and begin suggesting things you didn’t ask for.

So Machine Learning (ML) techniques are being used extensively to detect problems for which there’s no formula defined. Data and extracting valuable information from it has become critical for successful business operations and planning. That’s not what AI only has genrative ai to offer, but let’s start with the most common examples, then we can move on to the main topic – generative AI. But its big business customers need to be deliberate and move at a different pace, Google Cloud chief Thomas Kurian said in an interview with Reuters.

Technology

As companies rush to adapt and implement it, understanding the technology’s potential to deliver value to the economy and society at large will help shape critical decisions. We have used two complementary lenses to determine where generative AI, with its current capabilities, could deliver the biggest value and how big that value could be (Exhibit 1). Since its launch in November 2022, OpenAI’s ChatGPT has captured the imagination of both consumers and enterprise leaders by demonstrating the potential generative AI has to dramatically transform the ways we live and work.

Founder of the DevEducation project

As the development and deployment of generative AI systems gets under way, a new value chain is emerging to support the training and use of this powerful technology. After all, of the six top-level categories—computer hardware, cloud platforms, foundation models, model hubs and machine learning operations (MLOps), applications, and services—only foundation models are a new addition (Exhibit 1). Generative AI allows models to become multimodal, which means they can process multiple modalities simultaneously, such as images and text, broadening their application areas and increasing their versatility.

Salesforce lifts annual forecast as business software demand stays strong

The versatility and potential of generative AI across different sectors have driven its adoption and contributed to market growth. It is used to create realistic computer-generated graphics and special effects in movies and video games. Moreover, generative AI has transformed advertising and marketing strategies by enabling personalized and customized content creation, allowing businesses to tailor their messaging and offers to individual consumers. Besides, it is used in the healthcare sector genrative ai for tasks such as medical image analysis, drug discovery, disease diagnosis, and treatment planning. Generative AI models can generate synthetic medical images, simulate physiological systems, and assist in precision medicine initiatives. The survey results show that AI high performers—that is, organizations where respondents say at least 20 percent of EBIT in 2022 was attributable to AI use—are going all in on artificial intelligence, both with gen AI and more traditional AI capabilities.

The market growth in this segment is attributed to the increasing implementation of AI & Machine Learning (ML) in the sector to prevent fraudulent activities, secure data, and meet the dynamic needs of various stakeholders in financial services. Generative AI benefited the banking industry by creating marketing images and text and generating data to make ML applications more efficient and accurate. Moreover, generative AI in commercial banking can accelerate back-office tasks, such as answering real-time questions about a customer’s financial performance in complex scenarios. On the other hand, the diffusion networks segment is expected to witness the fastest growth rate of 38.1% during the forecast period. Using diffusion networks for generative AI can help leverage various unique capabilities, including creating diverse images, rendering text in various artistic styles, and animation.

End-use Insights

Respondents at these organizations are over three times more likely than others to say their organizations will reskill more than 30 percent of their workforces over the next three years as a result of AI adoption. Furthermore, the end-user segment is categorized into media & entertainment, BFSI, IT & telecommunication, healthcare, automotive & transportation, and others. BFSI is one of the leading sectors in terms of growth, whereas the media & entertainment sector will lead in terms of revenue. This research report categorizes the generative AI market based on offering, application, vertical, and region.

• In other cases, generative AI can drive value by working in partnership with workers, augmenting their work in ways that accelerate their productivity.
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• Until now, machines have never been able to exhibit behavior indistinguishable from humans.