Generative AI - South America | Statista Market Forecast

The market size in the Generative AI market is projected to reach US$1.07bn in 2024.
The market size is expected to show an annual growth rate (CAGR 2024-2030) of 46.47%, resulting in a market volume of US$10.59bn by 2030.
In global comparison, the largest market size will be United States (US$11.66bn in 2024).

Definition:
Generative artificial intelligence (AI) is a field of artificial intelligence that focuses on creating models and systems capable of generating new content, such as images, videos, music, or text. By training on large datasets, generative AI models learn patterns and structures within the data to produce novel and realistic outputs that mimic the original data distribution. Using techniques like generative adversarial networks (GANs) or variational autoencoders (VAEs), generative AI has the potential to enhance creativity, enable data synthesis, and revolutionize various industries including art, entertainment, and content creation.

Additional Information:

The market comprises two key performance indicators: market sizes, and market sizes by industry. Market sizes are generated by the funding amount of Generative Artificial Intelligence companies. Key players of the market include companies such as Open AI, NVIDIA DeepL Learning and Google (Magenta, DeepDream).

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Applications of generative artificial intelligence to create new content, such as images, music, and text, which is indistinguishable from human-generated content.

Non-artificial intelligence applications of generative systems, such as procedural content generation in video games, which do not involve machine learning or creativity.

The Artificial Intelligence Market in South America is witnessing extraordinary growth, fueled by the rising adoption of digital technologies, growing health consciousness among consumers, and the convenience of online health services. The market's remarkable growth rate is driven by these factors, making it a promising sector in the region.

Customer preferences: The Generative AI Market within the Artificial Intelligence Market in South America is seeing a rise in demand for personalized AI solutions that cater to the unique cultural and demographic preferences of consumers. With a growing tech-savvy population, there is a surge in the adoption of AI-powered virtual assistants and smart home devices that cater to the evolving lifestyle needs of individuals. This trend is driven by the desire for convenience and efficiency in daily tasks, as well as the need for personalized and tailored solutions.

Trends in the market: In South America, the Generative AI market within the Artificial Intelligence market is showing a growing trend towards the use of AI-powered virtual assistants for customer service and support. This is driven by the region's increasing digitalization and demand for seamless and personalized customer experiences. Additionally, there is a rise in the adoption of AI-powered chatbots for marketing and sales purposes. These trends have significant implications for industry stakeholders, as they can increase efficiency, reduce costs, and improve customer satisfaction. However, concerns around data privacy and ethical implications of AI must be addressed to ensure the responsible use of these technologies.

Local special circumstances: In South America, the Generative AI Market within the Artificial Intelligence Market is influenced by the region's strong focus on developing advanced technologies for various sectors, such as agriculture and healthcare. Additionally, the availability of skilled AI talent in countries like Brazil and Argentina is driving the growth of the market. The region's unique cultural diversity also plays a significant role in shaping the demand for Generative AI solutions, with different industries and businesses seeking tailored solutions to meet their specific needs. Furthermore, government initiatives to promote innovation and foreign investments in the AI sector are propelling the market's growth in South America.

Underlying macroeconomic factors: The growth of the Generative AI market within the Artificial Intelligence market in South America is heavily influenced by macroeconomic factors such as technological advancements, government support, and investment in digital infrastructure. Countries with favorable regulatory environments and strong investment in AI technologies are experiencing faster market growth compared to regions with regulatory challenges and limited funding. Furthermore, the increasing adoption of AI solutions in various industries, including healthcare, finance, and manufacturing, is driving the demand for Generative AI in South America. This trend is expected to continue as the region experiences economic growth and digital transformation.

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.

This report presents a comprehensive analysis and additional information on the Technology market, in a PDF format.

Artificial intelligence evokes images of supercomputer assistants, machines that can think creatively, and, to some, scenes from their favorite sci-fi movie. The reality, despite not being as futuristic, is not far off from this. AI refers to the ability of a computer or machine to mimic the competencies of the human mind, which often learns from previous experiences to understand and respond to language, decisions, and problems. The market for AI technologies is vast, amounting to around 200 billion U.S. dollars in 2023 and is expected to grow well beyond that to over 1.8 trillion U.S. dollars by 2030.

Artificial intelligence (AI), the technology that allows digital computers or computer-controlled robots to perform tasks more commonly associated with intelligent beings, has been leaping into the limelight following the release of a wide variety of Generative AI models in 2023. The United States, being the largest economy in the world, has a natural advantage. Although human-like androids such as those portrayed in the science fiction movie Blade Runner are still far from reality, applications of AI such as smartphone virtual assistants and industrial robots are already widespread in U.S. society. The industry’s powerful ability to improve efficiency and increase productivity has made it of strategic importance to U.S. industries and government, both of which push the U.S. lead in the AI race.