“The world is poised to see an explosion of growth in the generative AI sector over the next ten years that promises to fundamentally change the way the technology sector operates,” Singh said in a statement Thursday. “The technology is set to become an increasingly essential part of IT spending, ad spending and cybersecurity as it develops.”

Read the Full Report: Generative AI: A Robust Growth Opportunity

Demand for generative AI has boomed worldwide since ChatGPT’s release late last year, with the technology poised to disrupt everything from customer service to banking. It uses large samples of data, often harvested from the internet, to learn how to respond to prompts, allowing it to create realistic-looking images and answers to queries that appear to be from a real person.

Amazon.com Inc.’s cloud division, Google parent Alphabet Inc., Nvidia Corp. and Microsoft Corp., which has invested billions of dollars in OpenAI, are likely to be among the biggest winners from the AI boom, according to the report.

The largest driver of revenue growth from generative AI will come from demand for the infrastructure needed to train AI models, according to Bloomberg Intelligence’s forecasts, amounting to an estimated $247 billion by 2032. The AI-assisted digital ads business is expected to reach $192 billion in annual revenue by 2032, and revenue from AI servers could hit $134 billion, the report said.

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Investors, meanwhile, took a pause from their obsession with all things AI on Thursday. The software firm C3.ai fell as much as 24% in New York, extending Wednesday’s 9% decline following a disappointing sales outlook.

Chipmaker Nvidia, which has emerged as Wall Street’s biggest AI bet, resumed its rally, rising 3.3%. Its shares have soared by 28% since May 24 and the Silicon Valley firm briefly reached a $1 trillion valuation this week.