Enterprise spending on generative AI rose 500% this yr to $13.8 billion from $2.3 billion in 2023, in keeping with data released Wednesday by Menlo Ventures.
The report also found that OpenAI lost market share in enterprise AI, declining from 50% to 34%. Anthropic doubled its market share from 12% to 24%. The results come from a survey of 600 IT decision makers from corporations with 50 or more employees, the report said.
Menlo is an investor in Anthropic. OpenAI didn’t immediately reply to a request for comment.
Tim Tully, partner at Menlo Ventures, said in an interview with CNBC that the facility shift is due partially to the advancement of Claude 3.5 and the incontrovertible fact that the vast majority of corporations are using three or more major AI models. Although OpenAI and Anthropic dominated the usage of AI models in enterprises, he said that folks “juggle models” and that habit is “not a well-understood data set.”
“Developers are pretty savvy – they know how to switch between models pretty quickly,” Tully explained. “They choose the model that best suits their use case… and that’s probably Claude 3.5.”
MetaMarket share remained at 16% and Cohere's market share remained at 3%. Google's rose from 7% to 12%, and Mistral's lost a percentage point, falling to five% in 2024.
Foundation models — like OpenAI's ChatGPT, Google's Gemini, Anthropic's Claude and others — still dominated corporate spending, the report said, with large language models receiving $6.5 billion in corporate investment.
Menlo's report was optimistic about AI agents, a number one AI trend and investment area in 2024. Google, Microsoft, AmazonOpenAI and Anthropic are pursuing the technology. AI agents are considered a step beyond chatbots. They can perform multi-step, complex tasks on a user's behalf and create their very own to-do lists so users don't should walk them through the method step-by-step.
“The spy story is real – it’s not hype,” Tully told CNBC. “I don’t think it can necessarily cure cancer, but will it make people more productive and help corporations generate revenue? Yes.”
The report found that code generation is the leading use case for generative AI, with greater than half of survey responses citing it because the dominant use. Support chatbots were next at 31%, followed by enterprise search and retrieval, data extraction and transformation, and meeting summarization.
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