OpenAI has announced the launch of its B2B product range with ChatGPT Enterprise, the biggest news to come from the company since its riotous debut in November of 2022. Amidst an uncertain economic climate, generative AI continues to dominate headlines and acts as a critical component for growth – contributing roughly £3.7bn in value to the UK economy, as well as attracting almost £19bn in private investment through 2022. The UK AI market is currently valued at over $21bn, and it is estimated to grow to over $1tn by 2035, making the UK the third largest AI market in the world after the U.S. and China, according to the International Trade Administration. Claire Trachet, CEO of tech business advisory, Trachet, discusses how this announcement will see a wave of new tech startups which will leverage ChatGPT Enterprise – reducing costs and increasing investor appetite.

Amidst a period of various economic challenges, the latest Venture Pulse report by KPMG saw funding experience a severe slump in Q1 of 2023, falling to £2.9 billion. This new announcement could turn the tide for many companies as did ChatGPT’s original announcement, where the UK saw around 432,000 businesses embrace at least one AI technology – according to government research, sparking a flurry of AI startups. Despite VC funding being scarce, ChatGPT’s success meant the generative AI infrastructure category saw over 70% of funding since Q3’22 across just 10% of all generative AI deals.

According to a CEO poll designed by Deloitte, seventy-nine percent of CEOs believe Generative AI will increase efficiencies, and half of CEOs surveyed (52%) believe it will increase growth opportunities with 55% of CEOs admitting they’re evaluating or experimenting with AI. Another poll from Gartner found 45% of executive leaders had stated that the publicity of ChatGPT encouraged them to increase AI investments, this is likely to repeat with the ChatGPT Enterprise announcement.

Claire Trachet, CEO and founder of business advisory, Trachet, comments on the wave of excitement surrounding ChatGPT enterprise and what this means for startups and investor sentiment:

“The announcement of ChatGPT enterprise and plans for ChatGPT Business to also be introduced could signal new opportunities for businesses and startups who are navigating an uncertain economic climate. As we saw with the debut of ChatGPT, investor confidence naturally grew with everyone wanting to capitalise on new technology that will inevitably change the way we work on a day-to-day basis.

“This is also coming at a time when the AI arms race is becoming more competitive, and consumers are becoming more familiar with AI technology. As a result, consumers and businesses are becoming more inclined to use and integrate this technology into their lives and businesses. For startups and smaller businesses, this will act as a way to help them scale up in a more cost-effective way through M&A deals and gain investor interest.

“Despite the M&A sector experiencing a slowdown this year, Open-AI’s announcement could help the sector pick up again. Investors will no longer be frozen, as they know opportunities are presenting themselves and are ready to actively seize them. In addition, there is a growing number of investors who are sat on a dry powder pile having paused investments due to uncertainty in 2022. This means there are significant opportunities on the horizon, and now is the moment to prepare and get deal ready as optionality will increase in H2 of this year.