GenAI is the Talk of The Town
- October 6, 2023
GenAI is the talk of the town. Even my older relatives, family and friends who’ve never been too keen on tech are suddenly debating “the ChatGPT.” That’s when you realize it’s more than just a trend. AI is already changing how we live, work and learn.
Built on the innovations of the last 40 years, GenAI is on the fastest adoption curve of any technology I’ve ever seen, with 75% of businesses already reporting quantified outcomes with GenAI initiatives.1 The projected growth of tokens generated by GenAI is a good proxy of what is coming our way, with growth of 100x by 2028.2
AI workloads are vastly different from traditional applications in the data center. Today’s GenAI workloads, in particular, require various forms of accelerated computing optimized for massive parallel data processing. And so, we are bullish that AI expands the TAM for technology spending, with the AI hardware and services market projected to grow at an 18% CAGR over the next few years to approximately $124B.3
Maximizing the benefits of GenAI requires an end-to-end solution. The right infrastructure, a data plan, software and services must work seamlessly to support workloads across clouds, on-prem and at the edge, because GenAI is far from a one-size-fits-all model. At Dell Technologies, with the broadest range of AI and GenAI solutions, we are helping customers run AI workloads anywhere they need them from proof of concept to production.
We believe AI represents a 20-30% productivity gain for most organizations, with leading use cases emerging in areas like improved customer experience, software development, sales and content creation and management. As a result, around 75% of companies are planning incremental, new funding to support GenAI initiatives.4 This will be a multi-decade cycle creating tremendous progress with a lot of change to come. This is different and it’s exciting.
To learn more, check out materials from our recent Dell Technologies Securities Analyst Meeting, where Michael and I and our leadership team delve into our unique operating model and our strategy to harness the limitless potential of AI.
1 Dell Technologies Generative AI Pulse Survey www.dell.com/genaipulse, October 2023
2 Tirias Research – Forecast TCO Background, 2023
3 IDC Worldwide Semiannual Artificial Intelligence Tracker, v2022 H2, July 2023
4 Dell Technologies Generative AI Pulse Survey, August and September 2023