The Generative AI market, a crucial branch of artificial intelligence, is revolutionizing entire industries today. According to ResearchAndMarkets.com, the Gen-AI market was valued at USD 20.21 billion in 2023 and is expected to reach USD 440 billion by 2032. This signifies an impressive CAGR of 41.31% over the forecast period from 2024 to 2032.
READ NOW: 10 AI News Investors Shouldn’t Miss and 12 AI Stock News and Ratings Dominating Wall Street
According to the report, the North American region leads the Generative AI market with a 34% share in 2023. Its robust technology ecosystem, skilled workforce, and increasing demand for AI-powered content are responsible for the leading market share. The European region has also been experiencing growth, driven by government funding, startup innovation, and region-specific applications.
Back in 2022, the generative AI market was dominated by established players only. These established players accounted for 88% of the market share, whereas start-ups grasped only 12%. This is now changing, with more players entering the market with each passing year.
Highlighting advancements in artificial intelligence, Sam Altman, CEO of AI Company OpenAI states how the next innovations in AI are going to be more disruptive than people can imagine. Speaking at the New York Times’ DealBook Summit in New York City, he stated that the industry may begin to see examples of artificial general intelligence (AGI), which refers to the hypothetical intelligence of a machine similar to that of a human, as soon as 2025.
“I think it’s possible… in 2025 we will have systems that we look at… and people will say, ‘Wow, that changes what I expected”
-Sam Altman
Altman noted that at first, the introduction of AGI, and the level of intelligence beyond it, is going to have minimal effect. However, it will later “be more intense than people think”. In its latest advancements in AI, OpenAI has now begun testing new reasoning AI models, o3 and o3 mini.
This demonstrates a sign of growing competition with rivals such as Google to create smarter models proficient at solving complex problems. According to Altman, OpenAI plans to launch the o3 mini by the end of January, and the full o3 after that. The enhanced models aim to outperform existing ones, driving new investments and user growth.
The new o3 and o3 mini models are currently undergoing internal safety testing, and are anticipated to be more powerful than the o1 models. OpenAI has ignited a competitive AI arms race, pushing tech companies worldwide to accelerate the development of cutting-edge AI technologies.
For this article, we selected AI stocks by going through news articles, stock analysis, and press releases. These stocks are also popular among hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
A doctor in a laboratory, overseeing the development of Artificial Intelligence (AI).
10. Knightscope, Inc. (NASDAQ:KSCP)
Knightscope, Inc. (NASDAQ:KSCP) is an innovator in robotics and artificial intelligence (“AI”) technologies in public safety. On December 19, the company announced 12 new contracts across 7 US States for its K1B Emergency Communication Devices (“ECDs”) and related services. These emergency communication devices offer voice connectivity, broadcast alerts, area illumination capabilities, and priority cellular bandwidth access through Verizon Frontline service. The devices will help reduce the reliance on cell phones, allowing users to get priority access to cellular bandwidth, and ensuring the call reaches the right help promptly. Knightscope also added three new resellers to the Knightscope Authorized Partner (“KAP”) program, where the KAPs will offer an expanded range of innovative tools for helping clients improve safety at public facilities, reduce costs, and improve the overall safety of their facilities.
9. Safe Pro Group Inc. (NASDAQ:SPAI)
Safe Pro Group Inc. (NASDAQ:SPAI) leads in artificial intelligence-driven drone imagery analysis for humanitarian mine-clearing efforts. On December 20, the company announced that it anticipates reporting a record-breaking annual 2024 revenue, with an increase of over 130% as compared to the previous year. The expectations regarding a record fiscal 2024 result can be attributed to an increase of 200+% in fourth-quarter revenue versus the year-ago period. In turn, the surge in fourth-quarter revenue is fueled by strong sales in the company’s mission-critical drone services, ballistic products, and artificial intelligence (AI) unit.
“I am extremely proud of our growth and of the impact our organization made in 2024 as we continue to build long-term customer relationships in the US and with our allies. Our revolutionary and patented software ecosystem has been battle tested in Ukraine where our AI located over 16,000 mines and explosive items for our users since the deployment of the platform. We continue to see growth across our drone services business and ballistic protection manufacturing unit building upon the strong foundation we have created and laying a path for further growth and success in the coming year”.
-Dan Erdberg, Chairman and CEO of Safe Pro Group Inc.