AI Data Services Market Projected $30B+ TAM by 2028: Surge in Demands for RLHF, Eval & Synthetic Data

As we progress toward AGI, it is becoming increasingly evident that data quality will have a greater impact on model performance than algorithmic advancements alone. However, this fundamental shift is not yet fully understood in the AI research community.

This article explores how data quality impacts model performance. We examine evidence supporting data’s rising importance over model architecture, GPU compute capacity and algorithms ; the expansion of the AI data services market, emerging benchmarks such as Humanity’s Last Exam (HLE) and the transition toward reinforcement learning (RL) and expert feedback in model training.

This growth is reminiscent of the cloud computing boom a decade ago or the big data analytics surge – as AI adoption grows, ancillary services supporting AI (like data labeling, MLOps, etc.) explode. Just as SaaS/cloud became essential for businesses undergoing digital transformation, data services are becoming core to any AI-driven transformation. Companies that once managed data in-house now increasingly outsource to specialists or platforms to keep up with volume and quality needs.

Furthermore, Our clients are probing on Deepseek’s pure RL data approach and its implications on AI data service market. In Question 4 of our last DeepSeek Post, we looked at what DeepSeek’s papers are saying about reasoning samples and SFT samples. On Page 3 of DeepSeek paper, it talks about taking pure RL approach without supervised data. Taking a purely Reinforcement Learning (RL) approach is genuinely revolutionary.

In this article, we will discuss:

1. Analysis of Two McKinsey Gen AI Reports and AI Data Services TAM

2. Model Benchmarking & Eval

   1. Scale AI’s Humanity’s Last Exam (HLE) And Performance Of The Latest AI Models

3. Emerging Gen AI Data Ecosystems And Their Impact On AGI

   1. Why Is Supervised Fine-Tuning (SFT) No Longer Enough?

   2. Rise of RL and RLHF for AI Training Are Shaping More Intelligent AI

   3. What is Agent Data and How Does It Differ from RLHF?

   4. Synthetic Data: NVIDIA’s Nemotron-4 340B

4. Top Companies Market Leaders