Artificial General Intelligence (AGI) Market Size & Overview:

Get More Information on Artificial General Intelligence (AGI) Market - Request Sample Report

The Artificial General Intelligence (AGI) Market size was valued at USD 3.01 Billion in 2023 and is expected to grow to USD 52 Billion by 2032 with a growing CAGR of 37.5% over the forecast period of 2024-2032. 

The Artificial General Intelligence market is being significantly propelled by government initiatives and investments aimed at advancing AI technologies. According to the U.S. National Science Foundation, the U.S. has invested $1.2 billion in AI research and development in 2023. The allocation signified a 20% increase over that year. Thus, the NSF annual report revealed that, in general, governments are seeing the economic and strategic potential of AI. Specifically, China’s Ministry of Industry and Information Technology reported a 35% increase in funding for AI-related initiatives, which totals $2.6 billion for 2023, It is the biggest single fund for any emerging technology. Similar initiatives have been conducted by European Union governments, which are set to invest €1 billion per annum between 2024 and 2027, as can be understood from the European Commission’s report on AI and Digital Innovation. It is articulated that the funding activities will allow AGI systems to develop and outperform task-specific AI by achieving human-like cognitive functions, which will revolutionize healthcare, defense, finance, education, and other sectors.

Artificial General Intelligence (AGI) is a cutting-edge field of research within artificial intelligence that aims to develop machines capable of independent reasoning, learning, and decision-making across a wide array of tasks. The significance of AGI lies in its potential to revolutionize numerous industries, such as Computer-Aided Design, automatic translation, and data-driven machine learning. There is a surging demand for AGI across various industries, driven by the need for advanced automation and intelligent systems. Additionally, major players in the field are investing heavily in research and development (R&D) activities, further fuelling the progress of AGI. Moreover, the widespread adoption of artificial intelligence in diverse businesses is contributing to the expansion of the AGI market. The increasing demand for Cognitive Services, which encompass advanced AI capabilities like natural language processing and computer vision, is expected to be a significant driver of AGI market growth. These services enable machines to understand and interpret human-like interactions, opening up new possibilities for AGI applications.

Artificial General Intelligence Market Dynamics

Drivers

• The AGI market is poised for growth due to the rising demand for cognitive computing and artificial intelligence (AI) across various industries.

• The increasing prevalence of the internet and smartphones is expected to further drive the expansion of the AGI market.

• The increasing demand for intelligent automation in diverse industrial sectors is expected to drive the growth of the Artificial General Intelligence (AGI) market in the forecast period.

Industries ranging from manufacturing and healthcare to finance and transportation are exploring AGI's applications to streamline processes, enhance efficiency, and unlock new opportunities. The ability of AGI to adapt, learn, and make decisions in complex environments makes it a highly sought-after technology for automating tasks that traditionally required human intervention. As the demand for more sophisticated automation and decision-making systems increases, the AGI market is likely to experience substantial growth, paving the way for innovative solutions that can handle diverse challenges across industries. The continuous advancements in technology and the quest for more intelligent systems are propelling the development and adoption of AGI.

Restrains

• Strict government regulations play a crucial role in limiting the market's growth potential

• Disruptions in the supply chain have emerged as another significant restraining factor

Opportunities

• The increasing number of AI startups is anticipated to generate fresh opportunities for participants in this market in the coming years.

Challenges

• Changing consumer preferences poses a challenge to the market's growth trajectory.

The development of AGI raises ethical dilemmas around its potential impact on society, employment, decision-making, and privacy. Regulations and ethical frameworks are necessary to address these concerns. Achieving true AGI, which possesses human-like general intelligence across various domains, remains a significant technical challenge. Current AI models often lack robustness, interpretability, and generalizability. AGI requires vast and diverse datasets for learning across multiple domains. Obtaining high-quality, diverse, and unbiased data at such a scale is a challenge, especially in fields with limited data availability.

Segment Analysis

By Offering

The highest share of the AGI market is held by software because of the growing need for complex algorithms and robust, scalable AGI systems. The software sector held a 45% share in 2023, with AGI software being a major driving force. Government agencies and private sectors are investing heavily in creating software that can train models of AGI on massive datasets. The development of GPT-4 by OpenAI and DeepMind’s AlphaFold has shown the tremendous power of cutting-edge AGI software to tackle very complex cross-domain problems. Moreover, as the government actively invests in AI research, the interest in the software continues to grow. In 2023, the US had spent 60% of its AI budget on software R&D. Future developments and improvements in the software will likely make AGI systems ever more powerful, quickly leading to their massive deployment in any sector.

By End Use

The Banking, Financial Services, and Insurance sectors have become the leading end-use segment for AGI technology because of the need for real-time data analysis, fraud detection, and personalized customer services. According to the U.S. Federal Reserve, the BFSI industry increased its investment in AI technologies by 25% in 2023, specifically for implementing AGI to improve the decision-making process. The adoption is encouraged by the Government, as the U.S. Department of Treasury reports that the application of AGI for fraud detection has reduced financial crime by 15% in 2023. Further, governments on the international level have requested financial institutions to adopt AI-driven risk assessment systems and fraud prevention systems to maintain the safety of the national financial infrastructure. The European Central Bank estimated that AI-driven automation is implemented by more than 60% of Europe banks and that AGI technology is aimed at ensuring operational efficiency via the creation of customer-oriented financial products.

By Processing

Text processing is the largest segment in the AGI market due to its extensive applications in the field of NLP for automating language-related tasks. In 2023, text processing accounted for 40% of the total AI processing tasks in the AGI domain. Governments of various countries have been leveraging AGI Text Processing systems to enhance the quality of service rendered to the public, automating language translation services for delivering speech-to-text functionalities, and effectively evaluating, interpreting, and analyzing government policies. For instance, as per the 2023 National AI Development Report the Chinese government, deployed AGI text processing systems to increase the accuracy of automated analysis of legal documents by 25%. Given the importance of text-based data and the growing dependence on text for information sharing, an understanding of human languages and the ability to analyze and generate text have made text processing one of the most important segments across all applications of AGI.

Regional Analysis

North America dominated the AGI market with a 39% market share in 2023. This can be primarily attributed to the region’s well-developed technological infrastructure, high levels of investment in AI research, and favourable regulation. The National AI Initiative Act, which aims to maintain the country’s leadership in AI and AGI through state funding and public-private collaborations. The North American AI ecosystem is supported by considerable levels of venture capital. The U.S. National Venture Capital Association reported that North American AI start-ups in 2023 had secured US$ 10 billion of funding, with a significant portion of it allocated to AGI research. Further, the competitive advantage of North American AGI development companies such as OpenAI, Google DeepMind, or Microsoft, can facilitate the sustainable development of the AGI sector in this region. Moreover, the Canadian government also announced multi-billion investments in AI and AGI research in 2023, with nearly CAD 1.3 billion allocated through a British Columbia wealth foundation in the Western and Greater Toronto area. This will further facilitate the growth of this sector. For other regions, the TALOS model does not foresee such high growth rates. However, high investment-wise expansion is estimated in Europe because of considerable investments by companies in AGI technologies and considerable demand from various industries, including banking, insurance, and manufacturing. Asia Pacific is expected to experience a significant growth rate due to the low adoption of AGI technology and a lack of awareness regarding its benefits. However, with the potential for increased awareness and adoption in the future, this region holds promising opportunities.

Need any customization research on Artificial General Intelligence (AGI) Market - Enquiry Now

Key Players

• OpenAI (GPT-4, Codex)

• Google DeepMind (AlphaGo, AlphaFold)

• IBM (Watson, Project Debater)

• Microsoft (Azure OpenAI Service, Project Bonsai)

• Meta AI (LLaMA, PyTorch)

• NVIDIA (DGX Systems, Clara AI)

• Anthropic (Claude, Constitutional AI)

• Cerebras Systems (Cerebras Wafer-Scale Engine, CS-2)

• Baidu (Ernie Bot, PaddlePaddle)

• Hugging Face (Transformers Library, BLOOM)

• Tesla (Dojo Supercomputer, Autopilot AI)

• Alibaba DAMO Academy (M6 Model, AliceMind)

• Amazon Web Services (AWS) (SageMaker, CodeWhisperer)

• SAP (SAP AI Core, SAP AI Foundation)

• Graphcore (IPU-Machine, Poplar Software)

• Huawei (MindSpore, Atlas AI)

• Qualcomm AI Research (AI Stack, Snapdragon AI Engine)

• Intel (Xeon AI Processors, OpenVINO Toolkit)

• Stability AI (Stable Diffusion, DreamStudio)

• Scale AI (Nucleus, Scale Document AI) and others

Latest News in the AGI Market:

• In February 2024 Funding: The Department published a $500 million Notice of Fund Availability for AGI research projects. The software and real-time data processing applications are particularly encouraged to enhance national AI capacities.

• In April 2024 Allocation: €500 million was announced for 2024-2025 to implement the EC’s AI and AGI policy. The development of ethical AGI entities with high transparency and safety levels is the primary focus.

• In June 2024 Event: China presented its initial national AGI testbed for the development of human-level intelligence. This year, the government committed $1 billion in funding startup initiatives and academic projects.

• In January 2024, Meta declared its ambition to become the first company to develop AGI that surpasses human intelligence. By the end of the year, the company planned to use around 350,000 NVIDIA AI chips. In addition to these developments, Meta intended to enhance the progress of its two-dimensional AI research division, FAIR, and GenAI, further merging the key departments and employees in AGI improvement.

• OpenAI, OpenAI has been at the forefront of AGI research. They released models like GPT-3, which showcased impressive language generation abilities. OpenAI has been working on various aspects of AI safety, ethics, and the development of algorithms with broader capabilities.

• IBM, IBM has been active in AI research, with efforts like IBM Watson focusing on natural language understanding, knowledge representation, and reasoning. They've also been involved in AI ethics and transparency initiatives.