Artificial Intelligence Market

Artificial Intelligence Market Size, Share, Growth Analysis, By Product & Service(Hardware, Software, Services), By Technology(Machine Learning (Deep learning, Predictive Analytics), Natural Language Processing (Text-Based NLP, Speech Based NLP), By Industry(Technology and Communication, Automotive & Assembly, Financial Services, Healthcare) - Industry Forecast 2024-2031

Report ID: SQMIG45C2073 | Region: Global | Published Date: February, 2024
Pages: 197 | Tables: 104 | Figures: 66

Artificial Intelligence Market Insights

Global Artificial Intelligence Market size was valued at USD 157.8 Billion in 2022 and is poised to grow from USD 285.9 Billion in 2023 to USD 1,047.0 Billion by 2031, at a CAGR of 15.92% during the forecast period (2024-2031).

Artificial Intelligence (AI) is a technology that enables computers to emulate human intelligence and problem-solving abilities. Combined with other technologies such as geolocation, sensors, and robotics, AI can perform tasks traditionally requiring human intervention. Common examples of AI in everyday life include digital assistants, self-driving cars, GPS systems, and tools like ChatGPT.

The ever-growing need for faster performing computations and the use of data-based artificial intelligence are widely recognized trends that drive growth in the market. The advances in computing capability have driven an evolution in artificial intelligence market through improved performance, increased creativity, and the availability of systems. Based on Moore’s Law, the computational resources necessary to train the largest of AI models have doubled every 3.4 months, way faster than the two years it used to double its rates. This surge in AI continued and is currently seven-fold more than before, and this clearly evidences the skyrocketing progress of the AI technology. As a result, AI systems are growing tremendously, and they are enhancing at a very fast rate, which portrays a boost in the level of artificial intelligence.  

In addition, many robotics startups are now embracing AI to develop and automate new AI systems. Firms like Olis Robotics have been driving innovation through the use of plug-and-play controls fitted with AI-powered software. Oxford University has used artificial intelligence’s latest developments to develop new software that can recognize and trace the faces of endangered species like chimpanzees individually in their natural habitats. The software is assisting conservationists and researchers to maximize the impacts of their efforts. While at the same time, minimizing the time and resources needed to observe and track at-risk species. 

Innovations in deep learning enhance the market for Artificial Intelligence by expanding its features and applications. Higher efficiency in recognising images and voices and using the natural language processing makes the implementations of AI more efficient and accurate.

Internet of Things (IoT)

US Artificial Intelligence Market is poised to grow at a sustainable CAGR for the next forecast year.

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Artificial Intelligence Market size was valued at USD 157.8 Billion in 2022 and is poised to grow from USD 285.9 Billion in 2023 to USD 1,047.0 Billion by 2031, at a CAGR of 15.92% during the forecast period (2024-2031).

Market vendors are focusing on growing their customer base in order to gain a competitive advantage. As a result, key players are pursuing a variety of strategic initiatives, including mergers and acquisitions and partnerships. For example, Advanced Micro Devices announced a strategic alliance with Oxide Interactive LLC, a video game developer company, in April 2020 to develop graphics technologies for the cloud gaming market space. Both companies intend to develop a set of tools and techniques to meet the real-time requirements of cloud-based gaming. In addition, Intel Corporation completed the acquisition of Habana Labs Ltd., an Israel-based deep learning company, in December 2019. This acquisition is expected to boost Intel Corporation's AI portfolio and efforts in the AI silicon market. 'Microsoft', 'IBM', 'Alphabet Inc ', 'OpenAI ', 'NVIDIA Corp ', 'Meta Platforms Inc ', 'Apple Inc ', 'DataRobot Inc. ', 'Cohere ', ''

The recent introduction of customizable AI models is poised to be a game-changer for the AI market. In 2024, Microsoft announce the launch of its Model Customization for Azure AI, an engineering service designed to accelerate co-innovation with customers to deliver tailored AI solutions. This initiative goes beyond simply providing tools and platforms. By offering the opportunity for selected customers to collaborate closely with Microsoft's engineering and research teams on customizing models, Microsoft is effectively lowering the barrier to entry for AI adoption. Companies, even those lacking extensive AI expertise, can now leverage Microsoft's pre-built tools and collaborate on customization, making AI solutions more accessible and relevant to their specific needs. This focus on addressing unique industry challenges makes AI more valuable to a wider range of businesses, ultimately propelling the growth of the AI market. 

Growing consumer adoption of AI-powered devices: The growing consumer adoption of AI-powered devices represents a significant demand-side trend for AI. As consumers become more familiar with and reliant on AI-powered devices such as smart speakers, virtual assistants, and smart home systems, there's a natural increase in demand for products that offer these capabilities. In 2022, 62% of adults in the United States utilize voice-assisted devices, while 100 million individuals, constituting 35% of adults aged 18 and above, possess at least one smart speaker. This marks a significant increase from 82 million people, or 32% of the same demographic, who owned smart speakers in 2021. The widespread adoption of voice-assisted devices and smart speakers among Americans creates a demand for advanced AI solutions.  

In 2023, North America held the greatest Artificial Intelligence market share. The artificial intelligence market has grown dramatically as a result of favourable government regulations encouraging North American enterprises to use AI and the rising demand for automated and technologically sophisticated hardware and software solutions across a variety of end-use verticals. Leading tech companies like Facebook, Amazon, Google, IBM, Microsoft, and Apple have a big impact on the growth of the North American AI market as they are based in North America.  

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Artificial Intelligence Market

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