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Enterprise spending on generative AI surged 500% this yr, from $2.3 billion in 2023 to $13.8 billion, in accordance with information launched by Menlo Ventures on Wednesday.
The report additionally discovered that OpenAI ceded market share in enterprise AI, declining from 50% to 34%. Anthropic doubled its market share from 12% to 24%. The outcomes got here from a survey of 600 enterprise IT decision-makers from corporations with 50 or extra workers, per the report.
Menlo is an investor in Anthropic. OpenAI didn’t instantly reply to a request for remark.
Tim Tully, a accomplice at Menlo Ventures, informed CNBC in an interview that the ability shift is thanks partially to the development of Claude 3.5 and since nearly all of corporations are utilizing three or extra giant AI fashions. Though OpenAI and Anthropic dominated corporations’ AI mannequin use, he stated, persons are “juggling fashions” and that behavior is “not a well-understood piece of knowledge.”
“Builders are fairly savvy — they know easy methods to commute between fashions pretty shortly,” Tully defined. “They’re selecting the mannequin that matches their use case greatest… and that is possible Claude 3.5.”
Meta‘s market share stayed at 16% and Cohere‘s share remained at 3%. Google’s rose from 7% to 12%, and Mistral’s misplaced one proportion level, declining to five% in 2024.
Basis fashions — corresponding to OpenAI’s ChatGPT, Google’s Gemini, Anthropic’s Claude and others — nonetheless dominated enterprise spend, the report discovered, with giant language fashions receiving $6.5 billion in enterprise funding.
Menlo’s report was bullish on AI brokers, a leading AI trend and space of funding in 2024. Google, Microsoft, Amazon, OpenAI and Anthropic are pursuing the expertise. AI brokers are seen as a step past chatbots. They will carry out multistep, complicated duties on a consumer’s behalf, and generate their very own to-do lists, in order that customers do not need to stroll them by way of the method step-by-step.
“The agent stuff is actual — it isn’t hype,” Tully informed CNBC. “I do not assume it may treatment most cancers, essentially, however is it going to make individuals extra productive and assist corporations generate income? Sure.”
The report discovered code technology is the main use case for generative AI, with greater than half of survey responses naming that as a dominant use. Help chatbots got here subsequent, at 31%, adopted by enterprise search and retrieval, information extraction and transformation, and assembly summarization.
