Generative AI set to become a $1.3 trillion market by 2034: Kantar

Kantar, a marketing data and analytics business platform, released data on the burgeoning AI market stating that the current AI user base of India stands at 724 million and is poised to grow Y-o-Y (year on year) at 6%.

The data also encompasses individuals who have engaged in AI features like image filters, personalised recommendations, smart devices, and more. 

Puneet Avasthi, senior executive director, of South Asia, insights division, Kantar, mentions, “We're leveraging decades of consumer behaviour insights into AI-powered engines that are fast and cost-efficient. AI is no longer the realm of geeks and techies; it's ingrained in everyday consumer experiences.”

“Our data collation involves tapping into our knowledge resources, including studies like ICUBE ( an annual syndicated study of Kantar to measure the reach and frequency of Internet users in India), to understand the adoption of AI by consumers and analyse the internet and digital footprint of the country,” he adds. 

Some key findings of the report: 

• 88% of consumers used AI-based algorithms which analysed their preferences, behaviours, and interests to create personalised recommendations for tailored experiences. This segment grew at 6 % YoY

• 88% of the consumer also automated various tasks and streamlined routines to enhance efficiency and productivity in their daily lives using AI. This segment grew at 6 % YoY

• 86% used ‘image enhancement filters’ so that the resulting image is improved in terms of sharpness, contrast, brightness or other features. This segment grew at 5% YoY

• At 21%, ‘smart home automation’ is a smaller segment but growing at 25% YoY

• 15% of consumers enhanced their ‘user experience through virtual assistants’. This segment is the fastest growing at 27% YoY

The report also highlighted that fitness and social media apps lead the AI adoption, followed by entertainment apps. 

Avasthi states that social media serves as the core driving engine for the internet, and with AI it enables users to access personalised content. 

Banking, finance services and insurance (BFSI), job search, and short video app segments are the slow adopters of AI.  

Soumya Mohanty, managing director & chief client officer- South Asia, Insights Division, Kantar, adds that BFSI is showing slow growth due to security concerns. 

"BFSI is delving into predictive analysis, with a focus on security considerations. In this category, there's the adoption of AI in chatbot formats,” she adds. 

“There's significant potential to simplify the online banking experience, particularly reaching deeper into lower socioeconomic strata with AI. Integrating voice capabilities can also be looked at, while maintaining security measures, opening up vast opportunities for innovation in this space," she mentions. 

The 1970-formed platform predicts that digital commerce and entertainment apps in future will adopt AI features to enhance customer experience and stay in line with emerging trends.

According to Avasthi, generative AI is set to become a $1.3 trillion market by 2034 with a possible 42% CAGR growth over the next 10 years.

Demographically, AI usage is notably higher among the youth aged 19-24, standing at 92%. Surprisingly, even in the older generation (45+ years old), it remains substantial at 81%.

Talking about the challenges that marketers currently face to deploy AI, Mohanty mentions "The challenges marketers currently face in leveraging AI boil down to two critical factors: having sufficient use cases and breaking down data silos. Data silos pose a significant obstacle, particularly in sectors like manufacturing and FMCG, which hold vast amounts of untapped data crucial for driving AI adoption. 

Looking ahead to the post-cookie era, Mohanty predicts a challenge for digital brands in aggregating information from diverse sources. She underscores the importance of traditional methods of engaging with audiences.

Avasthi notes that FMCG and consumer durables can be the two categories that can stand out as active early adopters of AI.

In response to these trends, Kantar has introduced an innovative suite of AI-powered research solutions aimed at helping brands and marketers better understand consumer behaviour.

The tools are as follows: 

Mohanty advises marketers on the importance of accurate data and the construction of unbiased, neutral models for the usage of AI, "There's a tremendous opportunity in leveraging AI, but it's crucial for brands to exercise caution in its implementation and purpose. Biased AI represents the worst form of artificial intelligence.”