Artificial Intelligence (AI) Engineering Market Report 2025

The artificial intelligence (AI) engineering market size has grown exponentially in recent years. It will grow from $15.67 billion in 2024 to $21.53 billion in 2025 at a compound annual growth rate (CAGR) of 37.4%. The growth in the historic period can be attributed to increased computing power, growing availability of big data, rising demand for automation, and expansion of cloud computing.

The artificial intelligence (AI) engineering market size is expected to see exponential growth in the next few years. It will grow to $84.38 billion in 2029 at a compound annual growth rate (CAGR) of 40.7%. The growth in the forecast period can be attributed to demand for AI-powered cybersecurity solutions, growth in edge computing, expansion of AI in healthcare applications, and increasing use of AI in customer service. Major trends in the forecast period include the development of explainable AI, the rise of AI in drug discovery and healthcare research, increased use of AI in human resources, the emergence of AI-driven design and creativity tools, growing focus on ethical AI development.

The rapid adoption of automation is anticipated to drive the growth of the artificial intelligence (AI) engineering market in the coming years. Automation refers to the use of technology to manufacture and distribute goods and services with minimal human intervention. In the AI engineering sector, automation accelerates development, boosts productivity, and streamlines processes, leading to widespread adoption of AI technology across various industries. For example, in April 2024, the International Federation of Robotics, a Germany-based non-profit organization, reported that the total number of industrial robot installations rose by 12%, reaching 44,303 units in 2023. Thus, the rapid adoption of automation is propelling the artificial intelligence (AI) engineering market forward.

The increased use of cloud-based applications is expected to drive the growth of the artificial intelligence (AI) engineering market in the future. Cloud-based applications, also referred to as cloud applications or software as a service (SaaS), are software programs and services delivered over the Internet. AI engineering enhances cloud-based applications by providing capabilities such as automation, analytics, security improvements, and enhanced user experiences. For example, in December 2023, the European Commission, a Belgium-based government entity, reported that between 2021 and 2023, the percentage of businesses in the EU using cloud computing services grew by 4.2 percentage points. Therefore, the increased adoption of cloud-based applications is fueling the growth of the artificial intelligence (AI) engineering market.

Technological advancement is a prominent trend in the artificial intelligence (AI) engineering market, with major companies adopting new technologies to maintain their market positions. For example, in March 2023, Mach9 Robotics Inc., a geospatial technology company, launched innovative geospatial production software that utilizes computer vision and AI for the rapid generation of 2D and 3D CAD engineering deliverables. This shift from a hardware-first to a software-first business model addresses the increasing demand for tools that expedite the processing and analysis of geospatial data for infrastructure management, illustrating the significance of technological advancements in driving market growth.

Companies in the artificial intelligence (AI) engineering market are focused on developing innovative AI-based solutions to enhance profitability. Generative Artificial Intelligence, capable of generating new content or data not explicitly programmed, is gaining traction. In May 2023, Encora Digital LLC introduced its Generative AI Technology Practice, aimed at accelerating innovation cycles for tech firms. This practice streamlines core software engineering, UI design, and quality engineering, offering substantial time savings in debugging, code optimization, test case automation, and bug forecasting. This strategic focus on innovation and productivity is contributing to the widespread adoption of Generative AI across various business domains.

In December 2022, Tecnotree Corporation acquired CognitiveScale Inc. to strengthen its position in 5G digital business support systems with AI and machine learning capabilities. The acquisition also provided access to the Cortex AI engineering platform, enhancing use cases in telecom, healthcare, and financial services, thereby improving overall customer experiences. CognitiveScale Inc., a prominent AI engineering company, brought valuable expertise in providing AI solutions for financial services, healthcare, and e-commerce businesses to Tecnotree Corporation.

Major companies operating in the artificial intelligence (AI) engineering market include Alphabet Inc., Microsoft Corporation, Meta Platform Inc., Dell Technologies Inc., Huawei Technologies Co. Ltd., Sony Group Corporation, Tencent Holdings Limited, Amazon Web Services Inc., Siemens AG, General Electric Company, Intel Corporation, Accenture LLP, International Business Machines Corporation, Samsung Electronics Co. Ltd., Cisco System Inc., Qualcomm Incorporated, Oracle Corporation, SAP SE, Hewlett Packard Enterprise Company, Nvidia Corporation, Salesforce Inc., Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Baidu Inc., Alibaba Cloud, Zebra Technologies Corporation, Palantir Technologies Inc., UiPath Inc., Verint Systems Inc.

North America was the largest region in the artificial intelligence (AI) engineering market in 2024. The regions covered in the artificial intelligence (ai) engineering market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) engineering market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Artificial intelligence engineering is a field dedicated to developing tools, systems, and processes that facilitate the practical application of artificial intelligence. AI engineers play a pivotal role in constructing AI models, formulating algorithms, and employing AI technologies to address intricate problems and facilitate data-driven decision-making.

The primary categories of solutions in artificial intelligence (AI) engineering encompass hardware, software, and services. Hardware refers to the physical components of a computing system or other electronic devices. Various technologies, including deep learning, machine learning, natural language processing, and computer vision, are implemented through diverse deployments such as on-cloud and on-premises. These technologies find application across various sectors, including healthcare, automotive and transportation, agriculture, information technology (IT), business management, among others.

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

The artificial intelligence (AI) engineering market consists of revenues earned by entities through AI solution development, AI integration and deployment, and supervised learning. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) engineering market also includes sales of graphics processing units (GPU), application-specific integrated circuits (ASIC), and central processing units (CPU). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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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