Developments in Artificial Intelligence markets: New indicators based on model characteristics, prices and providers

New empirical evidence about AI markets helps show if potential AI users benefit from favourable market developments regarding prices, quality and variety. It includes extensive data collection covering the characteristics of Generative AI models, including their performance and pricing, as well as developers, cloud providers, and downstream AI-powered applications globally over the past two years. Several trends emerge, indicating dynamism, including declining quality-adjusted prices and an increasing number of market players and model offerings. However, several risks remain related to bottlenecks in the key inputs to AI, notably data, computing power, and skills.