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AI Continues To Dominate As Business Spending Skyrockets 500% With OpenAI Ceding Enterprise Market Share

Nov 21, 2024 - digitalinformationworld.com
A report by Menlo Ventures reveals a 500% surge in business spending on generative AI, from $2.3B to $13.8B in 2024. The report also showed a decrease in OpenAI's enterprise AI market share from 50% to 34%, while Anthropic's market share doubled to 24%. The report was based on a survey of 600 leading enterprise IT decision-makers from organizations with 50 or more employees.

The report also highlighted that foundation models like ChatGPT, Gemini, and Claude dominated enterprise spending, receiving investments worth $6.5B. The leading use of Generative AI was code generation, as named by over 50% of the survey respondents. The report was generally bullish about AI agents, investments, and top AI trends in the market, with Google, Amazon, Microsoft, and Anthropic making significant strides in AI agents.

Key takeaways:

  • Business spending on generative AI surged 500% in 2024, jumping from $2.3B to $13.8B, according to data published by Menlo Ventures.
  • OpenAI's enterprise AI market share fell to 34% from 50%, while Anthropic’s market share doubled to 24%.
  • Foundation models like ChatGPT, Gemini, and Claude dominated in terms of enterprise spending, receiving investments worth $6.5B.
  • Code generation was the leading use of Generative AI, with over 50% of survey respondents naming it as such.
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