In a groundbreaking move on November 30, 2022, OpenAI launched ChatGPT to the public, marking the commencement of a generative artificial intelligence (AI) revolution that is reshaping the tech industry and consumer behaviours at an unprecedented pace. This generative AI era redefines possibilities across industries and is primed to fuel economic growth.
Key Takeaways:
- ChatGPT’s remarkable user growth and integration with major cloud services within its inaugural year underscore generative AI’s swift adoption and scalability.
- New business models like Model-as-a-Service (MaaS) and API-based monetization are transforming how AI technology is commercialized, democratizing access for businesses of all sizes.
- AI is on the verge of advancements in language understanding, multi-modal functionalities, and creating personalized and context-specific Large Language Models (LLMs).
One Year In, Generative AI Adoption Already Spans Far and Wide:
Within two months of its launch, ChatGPT garnered 100 million monthly active users (MAUs), making it the fastest-growing consumer internet app. To put this into perspective, it took TikTok around 9 months to reach the same milestone. With 100 million weekly active users and an estimated 200 million plus MAUs, including 2 million developers, ChatGPT has left an indelible mark, spanning 92% of Fortune 500 companies.
The correlation between spikes in MAUs and critical milestones such as integrations with major cloud providers, product upgrades, and broadening industry applications is noteworthy. The growth witnessed in February and March 2023 aligns with the release of GPT-4 and integrations into Microsoft’s product suite. The introduction of ChatGPT’s iOS app in May 2023 spurred another surge in usage, and with schools back in session in September, user engagement rose again, hinting at a potential new MAU record in the coming months.
Rapid user adoption has propelled OpenAI’s revenue to surpass $1.3 billion annually in 2023, representing an astounding 4500% increase from 2022 and setting off a generative AI arms race among major tech companies.
ChatGPT Paves the Way for Wider AI Monetization:
Several new business models have emerged in the past year, surpassing the traditional monthly consumer subscription fee. Model-as-a-Service (MaaS), where developers license their technology for a recurring payment, has become a preferred model, exemplified by OpenAI’s licensing of the GPT-3 AI model to Microsoft. This strategy extends market penetration by tapping into established distribution networks.
API-based monetization has also risen as a prevalent strategy for AI developers, enabling seamless integration into various platforms on a scalable pay-per-use basis. ChatGPT’s APIs, adopted by early users like Snapchat, Shopify, and Instacart, showcase the versatility of this approach.
Multi-Modality and Custom-Built LLMs Can Bring AI Closer to Widespread Consumer Application:
Anticipated advancements in language understanding and multi-modal functionality spanning image, video, and gaming signal the future of Large Language Models (LLMs). Custom-built LLMs and deeper integration from existing Software-as-a-Service (SaaS) providers, such as Salesforce’s Einstein GPT and Microsoft Co-Pilot, showcase AI applications’ increasing personalization and context specificity.
As SaaS providers leverage proprietary data to refine model training, generative AI is set to automate industry-specific tasks, paving the way for a more profound, more substantial transformation.
Conclusion: We Believe ChatGPT’s Inaugural Year is Just the Beginning:
ChatGPT’s successful first year symbolizes a significant shift in technological adoption. While evidence of meaningful monetization fuels continued industry investment, the progress witnessed is merely the precursor to a more substantial transformation poised to redefine the interplay between technology and humans, reshaping the economic landscape across industries.
