Artificial Intelligence (AI) in Games Global Market Report 2024

The artificial intelligence (AI) in games market size has grown rapidly in recent years. It will grow from $2.04 billion in 2023 to $2.44 billion in 2024 at a compound annual growth rate (CAGR) of 19.1%. The expansion witnessed during the historical period can be credited to several factors, including the advancement in game design, the growing impact of AI research, the emergence of open-world gaming concepts, and the rising demand for competitive gaming experiences.

The artificial intelligence (AI) in games market size is expected to see rapid growth in the next few years. It will grow to $4.84 billion in 2028 at a compound annual growth rate (CAGR) of 18.7%. The projected growth in the forecast period can be ascribed to several key factors, including a heightened emphasis on inclusive and accessible gaming, the expansion of indie game development initiatives, the rapid proliferation of esports and competitive gaming platforms, the integration of AI into game design tools, and a growing emphasis on personalization and player engagement strategies. Noteworthy trends anticipated in this period encompass AI-driven content moderation, the integration of AI-powered voice assistants, the emergence of AI-generated content, advancements in multiplayer experiences, and the introduction of emotionally intelligent non-player characters (NPCs).

The burgeoning popularity of mobile and online gaming is expected to drive the growth of artificial intelligence (AI) in the games market in the foreseeable future. Mobile and online gaming entails playing video games on mobile devices such as smartphones and tablets, as well as through online platforms. Game developers continually innovate with creative game designs, compelling storytelling, and immersive graphics, captivating players and broadening accessibility to a wider audience. AI development in games leverages extensive datasets for training algorithms, enabling AI systems to learn and enhance their capabilities through interactions with diverse player behaviors and preferences. For example, according to a study conducted by the Office of Communications (Ofcom), individuals aged 13 to 64 spent an average of seven and a half hours per week, roughly equivalent to one hour per day, engaging in online gaming activities in June 2022. Notably, there was a significant 25% increase in the amount of time spent on online gaming in 2021, particularly among those in the 55-64 age group. Consequently, the growing popularity of mobile and online gaming experiences is propelling the growth of artificial intelligence (AI) in the games market.

Key players in the artificial intelligence (AI) in the games market are actively developing advanced technologies such as AI-powered Non-Player Characters (NPCs) to enhance customer experiences with advanced features. NPCs are virtual entities in video games or simulations driven by artificial intelligence algorithms, enabling dynamic and responsive behavior. For instance, in May 2023, Replica Studios, an Australia-based AI software company, unveiled AI-driven intelligent NPCs for Unreal Engine, equipped with either OpenAI or users' custom AI language models. This technology harnesses Replica's extensive library of 120+ ethically licensed AI voices, empowering game developers to scale up game development and craft innovative, dynamic gaming interactions.

In October 2023, Microsoft Corporation, a leading US-based developer of computer software, operating systems, cloud computing, and artificial intelligence applications, completed the acquisition of Activision Blizzard, Inc., for a substantial $69 billion. This strategic move positions Microsoft as a major player in the gaming industry, as Activision Blizzard boasts ownership of renowned gaming franchises including Call of Duty, Warcraft, and Candy Crush. Activision Blizzard Inc., headquartered in the US, is a prominent developer and manufacturer of video games, incorporating AI-based technologies and features into its gaming portfolio.

Major companies operating in the artificial intelligence (ai) in games market are Google LLC, Microsoft Corp., Tencent Holdings Ltd., Sony Group Corp., NVIDIA Corp., Baidu Inc., Nintendo Co. Ltd., NetEase Inc., Vivendi, Activision Blizzard, Electronic Arts Inc., Take Two Interactive Software Inc., Playtika, Square Enix, Konami Group Corp., NCSoft, Unity Software Inc., Capcom Co. Ltd., Behaviour Interactive Inc., Side Effects Software Inc., Quantic Dream, Charisma Entertainment Ltd., Ubisoft Entertainment SA, AI21 Labs, Insomniac Games, Crytek GmbH, PrometheanAI Inc., COGNOSPHERE PTE. LTD., Theai Inc., kashbet.

North America was the largest region in the artificial intelligence (AI) in games market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (ai) in games market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (ai) in games market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) integration in gaming entails leveraging intelligent algorithms and computing systems to emulate human-like behaviors, decision-making processes, and learning mechanisms. This enhances the gaming experience, enables adaptation to player actions, and fosters the creation of dynamic and engaging gameplay scenarios.

The primary components of AI in gaming encompass both software and hardware elements. Software components serve as foundational tools that harness AI capabilities to enhance various aspects of video game development. These technologies encompass machine learning, natural language processing, computer vision, gesture control, and other innovations tailored to diverse gaming genres such as action, adventure, puzzles, simulation, and role-playing. Applications span across PC gaming, TV gaming, smartphone gaming, and tablet gaming platforms.

The artificial intelligence (AI) in games research report is one of a series of new reports that provides artificial intelligence (AI) in games market statistics, including the artificial intelligence (AI) in games industry's global market size, regional shares, competitors with an Artificial intelligence (AI) in games market share, detailed artificial intelligence (AI) in games market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in games industry. This artificial intelligence (AI) in games 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) in games market consists of revenues earned by entities by providing services such as NPC behavior modeling, procedural content generation, player behavior analysis, and virtual assistants. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in games market also includes sales of dynamic difficulty adjustment, AI-powered NPCs, anti-cheat systems, and emotion recognition. 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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