Generative AI - Latvia

The Artificial Intelligence market in Latvia is witnessing an exceptional growth rate, propelled by the increasing adoption of digital technologies, growing health awareness among consumers, and the convenience offered by online health services. This trend is expected to continue, as the demand for Generative AI solutions rises in the country.

Customer preferences: With the rise of advanced technologies such as generative AI, consumers in Latvia are increasingly looking for personalized and interactive experiences. This trend is evident in the growing demand for AI-powered chatbots and virtual assistants, which offer a more efficient and convenient way to interact with businesses. Additionally, there has been a shift towards using AI for creative purposes, such as generating art and music, reflecting a growing interest in exploring the potential of technology in the art and entertainment industries. These changes highlight the increasing influence of technology in shaping consumer preferences in Latvia.

Trends in the market: In Latvia, the Generative AI market within the Artificial Intelligence market is experiencing a surge in demand for AI-powered chatbots and virtual assistants. These tools are being adopted by businesses to improve customer service and streamline operations. Additionally, there is a growing trend towards using AI for predictive analytics and data-driven decision making in various industries. This trend is expected to continue, with a focus on integrating AI into existing systems and processes. This presents opportunities for industry stakeholders to enhance efficiency and gain a competitive edge. However, it also raises concerns about potential job displacement and ethical considerations, as AI becomes more pervasive.

Local special circumstances: In Latvia, the Generative AI Market within the Artificial Intelligence Market is growing due to the country's strong focus on technological innovation and its highly skilled workforce in the field of AI. Additionally, the government's support for AI research and development has created a favorable environment for startups and new players in the market. Moreover, Latvia's strategic location within the EU and its membership in the European Single Market has allowed for easier access to potential customers and partnerships.

Underlying macroeconomic factors: The Generative AI Market within the Artificial Intelligence Market in Latvia is primarily driven by macroeconomic factors such as the country's strong focus on digitalization, favorable regulatory environment, and increasing investments in AI research and development. These factors are expected to contribute to the growth of the market in the coming years. Additionally, the country's relatively stable economic health and fiscal policies also create a conducive environment for businesses operating in the AI sector. Furthermore, the growing demand for AI-driven solutions in various industries, such as healthcare, finance, and manufacturing, is expected to drive the market growth in Latvia.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.