This report identifies key demand-side trends in the generative AI (Gen AI) services space, helping enterprises fine-tune their AI operations. It provides an overview of key observations and business challenges that Avasant considers important to highlight in this space.

Why read this Market Insights?

Enterprises are directing over 40% of their AI budgets to scale Gen AI projects to production. To achieve this, they are primarily collaborating with cloud platforms and service providers to leverage their expertise in Gen AI workflow orchestration, industry- and domain-specific customizations, and responsible AI integration. At the same time, startups are emerging to support enterprises through niche solutions around LLMOps, emotional intelligence, and voice cloning.

The Generative AI Services 2024 Market Insights™ aids organizations in identifying important market trends and expectations for any Gen AI projects they engage in.

Methodology

The industry insights presented in this report are based on our ongoing interactions with enterprise CXOs and other key executives; targeted discussions with service providers, subject matter experts, and Avasant Fellows; analyst insights from primary and secondary research; and lessons learned from consulting engagements.

Table of contents

About the report (Page 3)

Executive summary (Pages 4–7)

• • Defining generative AI
  • Key enterprise Gen AI services trends shaping the market
  • Avasant recognizes 16 top-tier providers supporting the enterprise adoption of Gen AI services

Demand-side trends (Pages 8–16)

• • Enterprises are set to accelerate Gen AI investments as production projects scale; they are prioritizing specialized talent acquisition and advanced employee training.
  • Enterprises have allocated 40% of their AI investments in 2024 specifically for Gen AI initiatives, with a primary focus on knowledge search using the retrieval-augmented generation approach.
  • BFSI, retail, and CPG lead Gen AI adoption for customized content generation, knowledge search, and unstructured data analytics and insight discovery.
  • Enterprises in the BFSI, retail, and CPG sectors are focusing on complex use cases like anti-money laundering, fraud detection, and omnichannel content generation.

Key contacts (Page 17)

Read the Research Byte based on this report. Please refer to Avasant’s Generative AI Services 2024 RadarView™ for detailed insights on the service providers and supply-side trends.