New Delhi, June 18 -- The global artificial intelligence (AI) market is likely to evolve into a two-tier structure, with premium frontier AI models serving highly specialised use cases while lower-cost models dominate mainstream applications, according to a report by Bernstein.

The brokerage said recent developments in the AI industry, including concerns over the rising cost of advanced AI models, indicate that users are becoming increasingly focused on the return on investment (ROI) from AI deployments.

Bernstein noted that the high cost of advanced models has prompted developers and enterprises to rethink how they use AI. It said AI users are likely to choose different models depending on the value of the task being performed, rather ...