Last year, we introduced our AI estimates, expecting the industry’s revenues to grow from USD 28 billion in 2022 to USD 300 billion in 2027—a 61% CAGR. However, with improved visibility for AI infrastructure spending that should extend beyond the initial training and inferencing boom and amid broadening demand for AI applications and models, we have raised our revenue estimate for the industry by 40%. Even on a top-down basis, our forecast of USD 420bn in revenues in 2027 is conservative at 0.3–0.4% of global GDP given the significant cost savings and new business opportunities AI offers. The recent strong rollouts of AI applications and models underscore the view that the App Store for the AI industry has arrived. Many industry pundits claim ChatGPT is the “iPhone moment” for AI, stimulating strong user adoption. However, there are many bears out there who are still not convinced about AI monetization, and they are waiting for tangible evidence.