Artificial Intelligence Services Global Market Report 2024

The artificial intelligence services market size has grown exponentially in recent years. It will grow from $18.34 billion in 2023 to $27.75 billion in 2024 at a compound annual growth rate (CAGR) of 51.3%. The growth observed in the historical period can be attributed to several factors, including the historical business impact of artificial intelligence, challenges encountered during historical implementations, the development of AI talent, market competition dynamics, and the integration of AI in customer service applications.

The artificial intelligence services market size is expected to see exponential growth in the next few years. It will grow to $96.86 billion in 2028 at a compound annual growth rate (CAGR) of 36.7%. The anticipated growth in the forecast period can be attributed to the adoption of ethical AI practices, the integration of AI into business processes, trends in investment and funding, global adoption of AI services, and the development of industry-specific AI solutions. Major trends expected in the forecast period include a rise in AI partnerships and collaborations, an increased focus on ethical AI considerations, integration with Internet of Things (IoT) and edge computing technologies, the emergence of AI-as-a-Service (AIaaS) models, and a growing emphasis on predictive analytics and data insights.

The artificial intelligence services market is poised for growth, primarily fueled by the increasing adoption of AI in healthcare. This entails the application of AI technologies in the healthcare industry to enhance patient outcomes, reduce costs, and improve efficiency. AI in healthcare provides real-time data to professionals, enabling informed decisions and automating tasks such as data entry and appointment scheduling. The National Center for Biotechnology Information projects significant growth, estimating the AI-associated healthcare market to reach USD 6.6 billion by 2021, showcasing a 40% compound annual growth rate and underlining the pivotal role of AI in healthcare's expansion.

A key driver for the artificial intelligence services market is the widespread adoption of cloud-based solutions. AI as a service allows businesses to experiment with AI without hefty initial investments, facilitating experimentation with different machine learning algorithms. Cloud-based machine learning empowers businesses to streamline data analysis and management, as evident in the intentions of companies to modernize payroll systems. Alight Solutions reports that 61% of businesses plan to leverage cloud-based payroll solutions, further emphasizing the pivotal role of cloud adoption in propelling the artificial intelligence services market.

The growth of the artificial intelligence services market faces challenges from the risks associated with data breaches and cyber-attacks. The World Economic Forum cautions that emerging technologies, including AI, may make society more susceptible to cyber threats. The Federal Bureau of Investigation's statistics highlight phishing schemes and investment fraud as major concerns, indicating the need for robust cybersecurity measures to support the growth of the artificial intelligence services market.

Major players in the artificial intelligence services market are driving innovation, exemplified by the development of text-to-image tools aimed at enhancing customer satisfaction and loyalty. OpenAI's Dall-E 3, a text-to-image tool using AI chatbot ChatGPT, transforms nuanced prompts into detailed and accurate images, showcasing the continuous evolution of AI tools to meet diverse user needs.

A prominent trend in the artificial intelligence services market is the utilization of AI as a service for human interaction through natural language processing (NLP). NLP, a subset of AI, facilitates human-computer interaction, breaking language barriers and enhancing communication. The Livox app, supporting 25 languages for people with disabilities, exemplifies the transformative impact of NLP in enabling effective human-machine communication.

In January 2021, ServiceNow, a leading provider of IT management software, acquired Element AI for $230 million. This acquisition strengthens ServiceNow's commitment to building an intelligent workflow platform, empowering staff to work efficiently and make informed decisions. Element AI, a Canadian AI company, contributes to ServiceNow's goal of creating a smarter and more productive working environment.

Major companies operating in the artificial intelligence services market report are Apple Inc., Alphabet Inc., Google LLC, Microsoft Corporation, Dell Technologies Inc., Huawei Technologies CO. Ltd., Hitachi Ltd., Siemens AG, Amazon Web Services Inc., General Electric Company, Intel Corporation, Accenture PLC, International Business Machines Corporation, Deloitte Touche Tohmatsu Limited, H2O.AI Inc., Cisco Systems Inc., PricewaterhouseCoopers International Limited, Ernst & Young Global Limited, Oracle Corporation, Honeywell International Inc., KPMG International Limited, SAP SE, Fujitsu Ltd., Tata Consultancy Services Ltd., NEC Corporation, Salesforce Inc., Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Baidu Inc., Wipro Ltd., SAS Institute Inc., Fair Isaac Corporation, HCL Technologies Ltd., Cognitive Scale Inc., BigML Inc. Asia-Pacific was the largest region in the artificial intelligence services market in 2023. North America was the second largest region in the global artificial intelligence services market share. The regions covered in the artificial intelligence services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The primary technology types associated with artificial intelligence services include machine learning, computer vision, natural language processing (NLP), and others. Machine learning, a subset of AI, enables systems to learn and improve from experience without explicit programming. Various software tools, including web-based and cloud application programming interfaces, processing and modelers, archiving, and data storage, are utilized to provide managed services and professional services. These services find applications across diverse end-user industries such as banking, financial, and insurance (BFSI), IT and telecom, retail, manufacturing, public sector, energy and utility, healthcare, among others.

The artificial intelligence (AI) services market research report is one of a series of new reports that provides artificial intelligence (AI) services market statistics, including artificial intelligence (AI) services industry global market size, regional shares, competitors with an artificial intelligence (AI) services market share, detailed artificial intelligence (AI) services market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) services industry. This artificial intelligence (AI) services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The countries covered in the artificial intelligence services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence services market includes revenues earned by entities by providing AI services that are used in telecommunications, government, retail, defense and healthcare. Companies in the artificial intelligence market provide outsourced services to cater to business requirements. AI as a service enables individuals and businesses to use AI for different purposes, without significant initial investment and with lower risk. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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