Business spending on generative AI skyrocketed 500% this year, increasing from $2.3 billion in 2023 to $13.8 billion, according to a report by Menlo Ventures.
The report indicates a significant shift in market share among enterprise AI providers. OpenAI's share dropped from 50% to 34%, while Anthropic's share doubled from 12% to 24%. The data was gathered from a survey of 600 IT decision-makers in companies with 50 or more employees.
Tim Tully, a partner at Menlo Ventures, attributed this shift to advancements in Anthropic's Claude 3.5 and the trend of companies using multiple AI models. He noted that developers are adept at switching between models to find the best fit for their specific needs.
Meta maintained a 16% market share, while Google's increased from 7% to 12%. Mistral's share declined to 5%.
The report highlighted that foundation models, such as OpenAI's ChatGPT and Google's Gemini, accounted for $6.5 billion in enterprise investments. Additionally, AI agents are emerging as a significant trend, capable of handling complex tasks autonomously.
Tully emphasized the practicality of AI agents, stating, 'It's not hype... it's going to make people more productive and help companies generate revenue.'
Code generation was identified as the leading use case for generative AI, followed by support chatbots and enterprise search applications.