Generative AI is set to become a $1.3 trillion market by 2034: Kantar

Delhi: As the country sits on the transition of AI, marketing data and analytics firm Kantar reported that generative AI is set to become a $1.3 trillion market by 2034 with a possible 42% CAGR growth over the next 10 years. 

The report highlighted that AI is touching the lives of 9 in 10 internet with an AI user base of 724 million in India and is set to grow YoY at 6%. 

While AI technologies are touching most internet users of India today, the report showed that their usage is expectedly higher among the youth (19–24-year-olds) at 92% and interestingly, at a high 81% for the older (45+-year-old) age bracket as well.

Puneet Avasthi, Senior Executive Director, South Asia, Insights Division, Kantar, said, “Generative AI is set to become a $1.3T market by 2034 with a possible 42% CAGR growth over the next 10 years.”

“As the usage of AI grows rapidly, it is critical for marketers to not use AI in isolation and as a gimmicky fad, but weave in consumer behavioural data into it to remove biases, and continue to focus on building equity and not just run activations,” he added. 

According to the study, ‘fitness’ and ‘social media’ apps are driving AI adoption with an average of 2.3 AI-led features embedded in these applications. Adoption, however, is slower in the ‘BFSI’, ‘job search’, and ‘short video’ apps segments, at an average of 1.2 features each.

Additionally, the report said that while 90% of marketing and sales leaders think their organisations should be using AI ‘often,’ 60% said their organisations ‘rarely or never’ do.  

When emphasising the adoption of AI among users, the report indicated a high demand for popular features, while enhanced AI functionalities are steadily gaining traction. It was noticed that 88 % of consumers used AI-based algorithms which analysed their preferences and interests to create personalised recommendations. This segment grew at 6 % YoY.

Kantar report further highlighted that 15% of consumers enhanced their ‘user experience through virtual assistants’. This segment is the fastest growing at 27% YoY. 

Speaking about AI and addressing the marketers, Soumya Mohanty, Managing Director & Chief Client Officer- South Asia, Insights Division, Kantar said “AI is inevitable. Historically, technology adoption has always been a dominant determinant of a brand’s trajectory.”