Sopa Images | Light Rocket | Getty Images
Corporate spending on generative AI jumped 500% this year to $13.8 billion from $2.3 billion in 2023, according to data released Wednesday by Menlo Ventures.
The report also found that OpenAI ceded enterprise AI market share, dropping from 50% to 34%. Anthropic doubled its market share from 12% to 24%. The findings came from a survey of 600 IT decision makers at companies with 50 or more employees, according to the report.
Menlo is an investor in Anthropic. OpenAI did not immediately respond to a request for comment.
Tim Tully, a partner at Menlo Ventures, said in an interview with CNBC that this shift in dynamics is a contributing factor to the advancement of Claude 3.5, with the majority of companies now using three or more large-scale AI models. He said it was for the sake of it. While OpenAI and Anthropic account for the majority of enterprise AI model usage, people are “jumping between models,” a habit that “isn’t data that is well understood,” he said.
“The developers are pretty savvy. They know how to move back and forth between models pretty quickly,” Tully explained. “They’re choosing the model that best suits their use case…maybe it’s Claude 3.5.”
metahad a market share of only 16%, and Cohere’s share was only 3%. Google rose from 7% to 12%, while Mistral fell by 1 percentage point, dropping to 5% in 2024.
The report found that foundational models such as OpenAI’s ChatGPT, Google’s Gemini, and Anthropic’s Claude still account for the majority of enterprise spending, with large language models accounting for $6.5 billion in enterprise investment. It turns out.
Menlo’s report was bullish on AI agents, a key AI trend and investment area for 2024. google, microsoft, AmazonOpenAI and Anthropic are pursuing that technology. AI agents are considered a step beyond chatbots. It can perform complex, multi-step tasks on your behalf and generate your own to-do list, so you don’t have to walk your users through the process.
“The agent’s story is real and not hype,” Talley told CNBC. “I don’t necessarily think it will cure cancer, but will it make people more productive and companies more profitable? Yes.”
According to the report, code generation is the primary use case for generative AI, with more than half of survey responses citing code generation as their primary use case. Chatbot support comes next at 31%, followed by enterprise search and retrieval, data extraction and transformation, and meeting summarization.
