Jazz community has shrunk dramatically...

1980s
However, the jazz community has shrunk dramatically and split, with a mainly older audience retaining an interest in traditional and "straight-ahead" jazz styles, a small core of practitioners and fans interested in highly experimental modern jazz, and a constantly changing group of musicians fusing jazz idioms with contemporary popular music genres.

There have been other developments in the 1980s and 1990s that were less commercially oriented. Many of these artists, notably Wynton Marsalis, called what they were doing jazz and in fact strove to define what the term actually meant. They sought to create within what they felt was the tradition, creating extensions of small and large forms initially pioneered by such artists as Louis Armstrong and Duke Ellington. In the case of Marsalis these efforts met with critical acclaim.

Others musicians in this time period - although clearly within the tradition of the great spontaneous composers such as Charlie Parker, John Coltrane, Fats Navarro and many others – choose to distance themselves from the term jazz and simply define what they were doing as music (this in fact was suggested by the great composer Duke Ellington when the term jazz first began to be popular).

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Acid Jazz and Nu Jazz
Styles as acid jazz which contains elements of 1970s disco, acid swing which combines 1940s style big-band sounds with faster, more aggressive rock-influenced drums and electric guitar, and nu jazz which combines elements of jazz and modern forms of electronic dance music.

Exponents of the "acid jazz" style which was initially UK-based included the Brand New Heavies, Jamiroquai, James Taylor Quartet, Young Disciples, and Corduroy. In the United States, acid jazz groups included the Groove Collective, Soulive, and Solsonics. In a more pop or smooth jazz context, jazz enjoyed a resurgence in the 1980s with such bands as Pigbag and Curiosity Killed the Cat achieving chart hits in Britain. Sade Adu became the definitive voice of smooth jazz.

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Funk-based Improvisation
Jean-Paul Bourelly and M-Base argue that rhythm is the key for further progress in the music; they believe that the rhythmic innovations of James Brown and other Funk pioneers can provide an effective rhythmic base for spontaneous composition.

These musicians playing over a funk groove and extend the rhythmic ideas in a way analogous to what had been done with harmony in previous decades, an approach M-Base calls Rhythmic Harmony. Wynton Marsalis has disagreed with the use of funk as a musical genre for jazz improvisation, preferring instead to retain the rhythmic base of swing.

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1990s
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Electronica
With the rise in popularity of various forms of electronic music during the late 1980s and 1990s, some jazz artists have attempted a fusion of jazz with more of the experimental leanings of electronica (particularly IDM and Drum and bass) with various degrees of success. This has been variously dubbed "future jazz", "jazz-house" or "nu jazz".

The more experimental and improvisional end of the spectrum includes Scandinavia-based artists such as pianist Bugge Wesseltoft, trumpeter Nils Petter Molvær (who both began their careers on the ECM record label), and the trio Wibutee, all of whom have gained their chops as instrumentalists in their own right in more traditional jazz circles.

The Cinematic Orchestra from the UK or Julien Lourau from France have also gained praise in this area. Toward the more pop or pure dance music end of the spectrum of nu jazz are such proponents as St Germain and Jazzanova, who incorporate some live jazz playing with more metronomic house beats.

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2000s
In the 2000s, "jazz" hit the pop charts and blended with contemporary Urban music through the work of artists like Norah Jones, Jill Scott, Jamie Cullum, Erykah Badu, Amy Winehouse and Diana Krall and the jazz advocacy of performers who are also music educators (such as Jools Holland, Courtney Pine and Peter Cincotti). A debate has arisen as to whether the music of these performers can be called jazz or not (see below).