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

UK GENERATIVE AI MARKET SNAPSHOT

• Revenue in the UK generative AI market is estimated to amount to US$ 2.78 billion in 2024. The market is expected to grow at a CAGR of 23.77% from 2024 to 2032.
• By component, the largest segment in the UK generative AI market is projected to be hardware with a market value of US$ 8.22 billion in 2032.
• In the UK generative AI market, 33.71% of total market value will be generated through IT and Telecom end user by 2032.
• The IT and Telecom sector expected to emerge as the fastest growing segment with 24.47% CAGR, in terms of revenue generation during the forecast period.

UK GENERATIVE AI MARKET OUTLOOK

The emergence of generative AI, particularly foundation models, has significantly increased the accessibility of AI technology for both businesses and consumers. Traditionally, enterprise teams faced challenges due to the complexity of AI, necessitating specific datasets, expertise in AI and relevant industries, and a robust Machine Learning Operations (MLOps) infrastructure. In contrast, generative AI offers immediate value and simplicity, sparking enthusiasm among business leaders for integrating AI into their operations. Organizations that innovate in developing original generative AI models and products, especially those that own their models rather than relying on APIs, have a promising market landscape to explore. Moving swiftly allows them to enter relatively immature markets, presenting substantial opportunities as first movers.

UK GENERATIVE AI MARKET TRENDS AND DEVELOPMENTS

The adoption rate of the latest AI systems surpasses that of voice-assisted speakers like Amazon's Alexa. The UK's generative AI market is highly competitive, reflecting a dynamic landscape with numerous new entrants and diverse business models. Presently, there are no barriers to entry into the UK's generative AI market, which focuses on AI foundation models used for creating content such as text, audio, video, and code from scratch. According to industry experts, Partnerships between generative AI developers and major digital players can offer mutual advantages, yet each collaboration requires careful evaluation. Assessments should focus on the extent of control exerted by larger entities over startups to prevent scenarios resembling mergers or distortion of competition. Currently, the UK's generative AI landscape is robustly competitive and poised to significantly benefit the economy. Thus, premature regulatory intervention could impede innovation, hinder growth, and limit consumer choices in generative AI. Instead, it's crucial to monitor the impact of new AI-specific regulations, such as the EU's recently enacted AI Act, to prevent imposing excessive compliance burdens and unnecessary bureaucratic hurdles on innovative AI developers.

The Government Digital Service (GDS) is conducting experiments to evaluate the potential of generative Artificial Intelligence (AI) in enhancing the user experience of GOV.UK. Their initial experiment involved utilizing generative Large Language Models, akin to ChatGPT, to streamline interactions and save users time. Follow-up surveys and expert evaluations were conducted to gauge the effectiveness and accuracy of the AI-generated responses. Building on the positive results, the GDS is swiftly refining the experiment to enhance accuracy and reliability. Simultaneously, they are exploring additional AI applications to further improve the experience of the millions of daily GOV.UK users.

UK GENERATIVE AI MARKET COVERAGE