Global Enterprises’ $15 Billion Investment in Gen AI Solutions Matches SaaS Growth Milestone in Just One Year

A recent McKinsey article has revealed a striking trend in the tech world. In just one year, generative AI has achieved what took software-as-a-service (SaaS) four years to accomplish. According to McKinsey's findings, global enterprises invested a staggering $15 billion in gen AI solutions in 2023 alone, signaling a technological disruption that's reshaping the enterprise software landscape at an unprecedented pace. [Read article here]

Very few technological breakthroughs have captured such staggering mindshare and market share as this. What is making this possible? Here's our analysis of the situation:

• Democratization of AI: Transformer-based technology has revolutionized the field of artificial intelligence, particularly in natural language processing. The explosive growth of LLM-based applications is largely due to the ease of adoption offered by today's transformers. ChatGPT can be easily called a turning point that captured everybody's attention making AI more accessible even to a general user.
• AI Agents and Intelligent Automation: Advances in large language models have led to agentic frameworks, creating AI agents capable of performing complex tasks autonomously or with a human-in-the-loop configuration. This accelerates productivity, streamlines operations and drives innovation, making AI agents essential to modern business processes.
• Democratizing AI Development: Progress in AI agent frameworks, along with no-code and low-code platforms, simplifies turning ideas into rapid prototypes, testing and deploying solutions. These advancements are reducing entry barriers, making AI technology accessible to businesses of all sizes, fostering innovation and enhancing competitiveness.