Artificial Intelligence (AI) refers to the creation of
intelligent machines that work and react like humans. AI is based on the
concept of machine learning, which enables machines to learn and improve from
experience without being explicitly programmed.
AI has the potential to transform various industries and is
already being used in fields such as healthcare, finance, and transportation.
In healthcare, AI can be used to diagnose diseases and develop treatment plans,
while in finance, it can be used to detect fraud and manage risk. Self-driving
cars are an example of how AI is being used in transportation. AI is also being
used to improve customer experience by providing personalized recommendations
and 24/7 support. Chatbots, for example, use AI to simulate human conversation
and help customers with their queries and problems. However, there are also
concerns regarding the impact of AI on employment. Many fear that AI will
replace human workers, leading to job losses and increased income inequality.
Additionally, there are concerns regarding the potential misuse of AI,
particularly in fields such as surveillance and warfare. To address these
concerns, it is important to ensure that AI is developed and used ethically and
responsibly. This includes developing AI that is transparent, accountable, and
unbiased. It also involves creating regulations and guidelines that ensure the
ethical and responsible use of AI.
In conclusion, AI has the potential to revolutionize various
industries and improve our lives in many ways. However, it is important to
address the concerns surrounding AI and ensure that it is developed and used in
an ethical and responsible manner.
Artificial Intelligence Market Growth Dynamics
Drivers in Artificial
Intelligence (AI) Market
The artificial intelligence market is experiencing a
transformation as data-based AI replaces the traditional rule-based AI. With
advancements in deep learning, machines are now able to learn and implement
processes independently, revolutionizing various industries. For example,
Amazon Go has redefined the retail experience by using data and information-driven
processes, which have transformed grocery shopping into an activity driven by
people's behavior, design layout, and data.
Artificial Intelligence (AI) Market
However, the growth of the artificial intelligence market is
being restrained by a limited number of AI experts. Due to the complexity of AI
systems, companies require a highly skilled workforce to develop, manage, and
implement AI solutions. The workforce must be proficient in technologies such
as cognitive computing, machine learning, deep learning, and image recognition.
Integrating AI solutions with existing systems can be challenging and requires
extensive data processing to replicate human behavior. Even minor errors can
lead to system failures, which can have a significant impact on the desired
Despite these challenges, the artificial intelligence market
continues to grow, driven by the need to achieve robotic autonomy and stay
competitive in the global market. The market offers opportunities for improving
operational efficiency in the manufacturing industry and enhancing customer
service by adopting AI solutions. However, critical challenges such as data
privacy and the unreliability of AI algorithms need to be addressed to unlock
the full potential of this market.
Artificial Intelligence (AI) Market
The development of ethical AI is creating new opportunities
for the wider adoption of AI technology. As the use of AI increases, concerns
around discriminatory biases and lack of transparency in ML algorithms are also
on the rise. To address these issues, AI governance frameworks and guidelines
have been established that incorporate the principles of explainable AI,
including fairness, accountability, transparency, safety, and data privacy. By
adhering to these principles, AI solution providers can build trust among
Many governments, regulatory authorities, and leading AI
solution providers are taking initiatives to address ethical questions around
AI and ML technologies. For example, the Australian and Singaporean governments
have introduced their own frameworks for ethical AI to promote the potential
benefits of AI while ensuring trust among users. The European Commission has
also established a framework to maintain ethics in AI and build trust.
Innovation and research led by tech giants are driving the
adoption of AI in various industry verticals, including automotive, healthcare,
retail, finance, and manufacturing. For example, Intel Corporation recently
acquired Cnvrg.io, an Israeli company that operates a platform for data
scientists to build and run machine learning models, to boost its AI business.
AI is becoming a critical element in these industries, and its potential
applications range from self-driving vehicles to life-saving medical equipment.
Artificial Intelligence (AI) Market
One of the major challenges faced by organizations today is
the issue of data security and privacy. The threat of security breaches is
expected to continue increasing in the future, with cybercrimes having already
resulted in a 78% increase in financial losses over the last four years.
Additionally, the time taken to resolve cyberattacks has doubled during this
time period. The exponential growth in data from various sources has put a
strain on IT teams, making it increasingly difficult to manage Exabyte and
petabytes of data, which in turn increases the likelihood of security breaches
and data loss.
In today's competitive marketplace, marketing teams require
real-time access to secure data to deliver a superior customer experience. To
achieve this, organizations gather data through multiple touchpoints and
measure it virtually. This data may include various types of information, such
as public data, big data, and small data collected from customers.
Artificial intelligence (AI) is widely recognized as a
revolutionary technology that will transform the digital era. Major tech
companies such as Amazon, Google, Apple, Facebook, IBM, and Microsoft are
investing significantly in AI research and development, working to make the
technology more accessible for enterprise use cases. Many companies are
adopting AI to enhance the customer experience, with McDonald's, for example,
investing USD 300 million to acquire an AI start-up in Tel Aviv to provide
personalized customer experiences using AI.
The increased accessibility of historical datasets is a key
factor driving innovation in AI. Data storage and recovery have become more
economical, allowing healthcare institutions and government agencies to make
unstructured data available for research purposes. As a result, researchers
have access to rich datasets that span a variety of domains, from historic
rainfall patterns to clinical imaging. The next generation of computing
architectures, combined with access to these rich datasets, is driving
information scientists and researchers to innovate faster than ever before.
The artificial intelligence market is segmented into
On-premises and Cloud based on deployment mode. The cloud segment is expected
to witness the highest Compound Annual Growth Rate (CAGR) during the forecast
period due to the multiple benefits it offers, such as reduced operational
costs, hassle-free deployment, and high scalability. The adoption of cloud
deployment for Natural Language Processing and Machine Learning tools in AI is
increasing due to the awareness of its benefits. To cater to their clients, AI
solution providers are focusing on developing robust cloud-based solutions,
especially as many organizations have migrated to private or public cloud.
Cloud deployment also offers additional flexibility for business operations and
real-time deployment ease to companies implementing real-time analytics. Major
vendors such as IBM, Microsoft, Amazon, and Google are offering cloud-based AI
The artificial intelligence market is segmented by offering
into software, hardware, and services, with the software segment expected to
account for the largest market share during the forecast period. AI software
and related software development kits have witnessed the most developments in
recent years. The software integrated into computer systems carries out complex
operations, synthesizes the data received from the hardware systems, and
processes it in an AI system to generate an intelligent response. AI software
is now used in various applications such as smartphone assistants, ATMs that
read checks, voice, and image recognition software on social networks, and
software that serves ads on various websites.
However, the growth of the artificial intelligence market is
limited by a scarcity of skilled workers in the field of artificial
intelligence. Developing sophisticated algorithms and managing AI and automated
systems requires great software engineering abilities and significant knowledge
of distributed and concurrent programming or debugging with communication
protocols. Unfortunately, appropriately skilled talents are often in short
supply, especially in emerging economies. This scarcity of competent workers
and employees is a significant limiting factor for the growth of the AI market.
The AI market in North America has been growing rapidly and
is expected to remain the largest market during the forecast period. The region
has seen promising growth across various industries, including BFSI, retail and
eCommerce, telecom, and travel and hospitality. The government and public
sector are also investing in technology to cater to a large customer base,
further contributing to the growth of the AI market in North America.
The adoption of AI in industries such as aerospace,
healthcare, manufacturing, and automotive has been fueled by advancements in
deep learning and Artificial Neural Networks (ANN). ANN can recognize similar
patterns and provide customized solutions, making it a valuable tool for
industries. Tech companies like Google Maps are using ANN to improve their
route and work on customer feedback. Computer vision technology advancements,
such as Generative Adversarial Networks (GAN) and Single Shot MultiBox Detector
(SSD), have led to digital image processing techniques that have applications
in security and surveillance, healthcare, and transportation.
Software solutions are leading the AI market and accounted
for more than 36.7% of global revenue in 2022. This is due to advances in
information storage capacity, high computing power, and parallel processing
capabilities, which allow for high-end services like real-time insights and
aiding decision-making. AI software solutions include libraries for designing
and deploying artificial intelligence applications, such as video analytics and
multiple hardware communication capabilities. The need for enterprises to
analyze visual content for meaningful insights is expected to drive the
adoption of AI software.
Companies are adopting AI services to reduce operational
costs and increase profits. Artificial Intelligence as a Service (AIaaS) is
being used by companies to obtain a competitive advantage over the cloud. AI
services include installation, integration, maintenance, and support
undertakings. The AI hardware market includes chipsets such as GPUs, CPUs,
ASICs, and FPGAs. GPUs and CPUs dominate the AI hardware market due to their
high computing capabilities.
In September 2020, Atomwise partnered with GC Pharma to
offer AI-based services and develop more effective novel hemophilia therapies,
highlighting the growing adoption of AI services across various industries.
The deep learning segment holds a significant share in the
artificial intelligence market due to its complex data-driven applications such
as text or speech recognition. It accounted for approximately 36.4% of the
global revenue in 2022. Deep learning provides a lucrative opportunity to
overcome challenges associated with large data volumes. Zebra Medical Vision
collaborated with TELUS Ventures to enhance the availability of its deep
learning solutions in North America, expanding AI solutions to clinical care
settings and new modalities.
Machine learning and deep learning investments cover AI
platforms and cognitive applications that enable the development of intelligent
and cognitive solutions. The deployment of cloud-based computing platforms and
hardware equipment for the safe restoration of large data volumes has paved the
way for the expansion of analytics platforms. Research and development
investments by leading players will also play a vital role in increasing the
adoption of AI technologies. The NLP segment is expected to gain momentum
during the forecast period. NLP is increasingly used in various businesses to
understand client preferences, purchasing behavior, decision-making processes,
The BFSI sector has witnessed significant adoption of AI due
to high demand for risk and compliance applications along with regulatory and
supervisory technologies. AI-based insights in Suptech tools are being used to
examine FinTech-based apps for regulatory, supervisory, and oversight purposes.
Financial institutions are using AI applications for risk management and
internal controls. Combining AI technology with behavioral sciences enables
large financial organizations to prevent wrongdoing proactively.
The advertising and media segment accounted for more than
19.5% of the global revenue share in 2022, owing to the growing AI marketing
applications with significant traction. Cadbury started an initiative in
January 2022 that allows small business owners to create their ads for free
using the face and voice of a celebrity, with the help of an AI tool. However,
the healthcare sector is expected to gain a leading share by 2030, segregated
based on use cases such as robot-assisted surgery, dosage error reduction,
virtual nursing assistants, clinical trial participant identifier, hospital
workflow management, preliminary diagnosis, and automated image diagnosis. The
BFSI segment includes financial analysis, risk assessment, and
investment/portfolio management solicitations.
Artificial Intelligence Market Key Players
- SAS INSTITUTE
- ALIBABA CLOUD
- GENERAL VISION
- BLACKBERRY LIMITED
- DIDI CHUXING
- ANJU SOFTWARE
- BUTTERFLY NETWORK
- SK HYNIX
- PROGRESS DATARPM
- PRECISION HAWK
- AGEAGLE AERIAL SYSTEM
- AUREA SOFTWARE
Recent Developments in Artificial Intelligence (AI) Market
The Artificial Intelligence (AI) market has seen significant
growth in recent years, driven by advances in deep learning and artificial
neural networks (ANN). These technologies have fueled the adoption of AI in
several industries, including aerospace, healthcare, manufacturing, and
automotive. The North American region has been the most promising market for
AI, with the BFSI, retail and eCommerce, telecom, and travel and hospitality
sectors contributing significantly to its growth.
The Artificial Intelligence (AI) market has witnessed
several recent developments from various companies. In June 2022, AT&T and
Salesforce collaborated to reduce global emissions by 2035 through a connected
climate initiative. The initiative allowed AT&T to use Salesforce net zero
cloud to measure carbon footprints.
Similarly, in May 2022, Google announced an agreement with
the Dutch government, providing them with flexibility and productivity through
the Google workspace suite of tools and offerings to support a new hybrid working
In December 2021, AWS released AWS Cloud WAN, a platform
that enables businesses to connect their on-premises branch offices, data
centers, and Amazon Virtual Private Clouds to the AWS global network using a
Intel also collaborated with Microsoft in April 2021 to
identify threats such as crypto jacking and remediate the attacks before the
client's PC gets affected.
Microsoft released a new AI system in October 2020 to enable
image captioning and recognition abilities, allowing enterprises to improve
their products and services in the market.
Finally, in April 2020, IBM launched novel AI-powered
technologies to help the health and research community increase the discovery
of medical insights and treatments for COVID-19. The dashboard provides the
public, researchers, and government officials with detailed, localized, and
current information on COVID-19.
In addition to these developments, recent advancements in
computer vision technology such as GAN (Generative Adversarial Networks) and
SSD (Single Shot MultiBox Detector) have led to new digital image processing
techniques. These techniques enable the transformation of low-quality images
and videos into high-definition versions, with potential applications in
security and surveillance, healthcare, and transportation.
AI software solutions, including libraries for designing and
deploying artificial intelligence applications, are currently the most
significant revenue contributor in the AI market. This is due to their ability
to extract data, provide real-time insights, and aid decision-making,
positioning them to capture the most significant portion of the market.
Enterprises are also adopting AI services to reduce operational costs and
improve profitability, with AI as a Service (AIaaS) offering installation,
integration, maintenance, and support.
Governments and regulatory authorities worldwide are
undertaking various initiatives to tackle ethical questions around AI and ML
technologies. For instance, the Australian government has introduced an ethics
AI framework to enhance AI trust among its users, while the European Commission
has established a framework to maintain ethics in AI and enhance trust among
In conclusion, the AI market is rapidly evolving, and recent
developments indicate a promising future. Ongoing research and innovation by
tech giants continue to drive the adoption of advanced technologies in various
industry verticals, highlighting the critical role that AI is playing in
transforming businesses and societies globally.