Russia Generative AI Market Analysis, Size, and Forecast by Component, Deployment Model, Business Function, Technique, End User: 2019-2032

RUSSIA GENERATIVE AI MARKET SNAPSHOT

• Revenue in the Russia generative AI market is estimated to amount to US$ 1,419.7 million in 2024. The market is expected to expand at a CAGR of 26.65% from 2024 to 2032.
• By component, the largest segment in the Russia generative AI market is projected to be hardware with a market value of US$ 5,448.1 million in 2032.
• In the Russian generative AI market, 43.34% of total market value will be generated through IT and Telecom end user by 2032.
• During the forecast period, the IT and Telecom sector is anticipated to be the most rapidly expanding segment in terms of revenue generation, witnessing 27.12% CAGR.

RUSSIA GENERATIVE AI MARKET OUTLOOK

The pattern of cloud services adoption among enterprises in Russia witnessed a noticeable change in recent past with the majority of the very large and large organizations increasingly shifting towards cloud-based IT infrastructure and spending substantial amount on cloud services and solutions. This is projected to fuel growth of the Russia generative AI market during the forecast period. Further, growing inclination of these organizations is mainly linked with rising adoption of IoT technology and growth in big data. This has resulted in the increase in the demand for the platform as a service (PaaS) and infrastructure as a service (IaaS) in the country. However, small and medium business remains among early adopters of software as a service (SaaS) model for application.

Future of generative AI in Russia is bright as next generation cloud-based solutions especially designed to enhance virtual infrastructure rather than only abstracting physical infrastructure. Cloud computing technology in Russia is likely to represent a combination of on-premise compute and cloud-based solutions to create a hybrid IT infrastructure to improve security of private data center and scalability and flexibility associated with cloud. The Russian government has been actively promoting the adoption of generative AI technologies as part of its digital transformation agenda. Key initiatives such as the "Digital Economy of the Russian Federation" program aimed at modernizing the IT infrastructure and promoting the use of cloud services among government agencies and businesses. This is likely to stimulated Russia generative AI market progress.

Moreover, many organizations in Russia are adopting hybrid and multi-cloud strategies, leveraging both public cloud services and on-premises infrastructure to meet their specific needs. This approach enables end user enterprises reap benefit from the scalability and flexibility of the cloud while maintaining control over sensitive data or legacy systems. In contrast, growing concern over data security and increasing incidents of cyber-attacks is impeding growth of the Russia generative AI market to certain extent. However, with increasing regulatory requirements, there is a growing emphasis on security and compliance in the Russian generative AI industry. Thus, cloud vendors are investing substantial amount on advanced security measures and obtaining relevant certifications to assure customers of the safety and integrity of their data. These factors are stimulating growth of the generative AI market in the Russia. Furthermore, the Russian generative AI sector has witnessed various developments and trends

RUSSIA GENERATIVE AI MARKET TRENDS AND DEVELOPMENTS

According to a survey by Yandex i.e., "Artificial Intelligence in Russia — 2023," it was found that 20% of major Russian enterprises are currently leveraging generative artificial intelligence (AI). Specifically, 12% of these companies have identified primary functions and use cases for integrating generative AI into their operations, while approximately 27% are experimenting with the technology on a trial basis. Notably, all surveyed companies are utilizing OpenAI solutions, including GPT-4 and GPT-3.5. Furthermore, 80% of respondents are employing YandexGPT for text-related tasks, while over 40% are utilizing Kandinsky for image processing purposes. According to the industry experts, granting access to Russian generative neural network APIs for businesses will encourage the integration of this technology into both user-facing products and internal operations. The sectors expected to experience rapid benefits include IT, Marketing, and Customer Service. For instance, a generative AI-powered code writing assistant could enhance developers' efficiency by eliminating 10 to 15% of repetitive tasks. Similarly, the use of generative prompts and query summarization could enable support teams to handle customer inquiries 30–40% more efficiently

As per the industry leaders, Russia is actively developing its own foundational generative artificial intelligence models. It is ranked 7th globally in terms of government support for artificial intelligence development. This strategic emphasis is deliberate, as the adoption of artificial intelligence promises far-reaching benefits beyond direct economic impact. Specifically, AI development is expected to enhance quality and longevity of life, elevate educational standards, and stimulate job creation within the country. Over 60% of employees anticipate that the advancement of generative artificial intelligence will be advantageous, as it will streamline their workflow by automating mundane tasks like data collection, entry, and basic processing, routine document handling, initial customer interactions, accounting, among others. This efficiency will result in time savings and enable employees to concentrate on more innovative responsibilities.
This research report on Russia generative AI market would be produced using first-hand market information gathered from industry experts and major participants across the value chain, during primary research. It would provide broad view of current market trends, growth factors and competitive analysis.

RUSSIA GENERATIVE AI MARKET COVERAGE