AI Solutions Market - Forecasts from 2024 to 2029

The Artificial Intelligence (AI) solutions market is expected to experience a CAGR of 30.88% throughout the forecast period, reaching a market size of US$865.933 billion by 2029. This represents a substantial increase from US$131.664 billion recorded in 2022.

AI solutions are revolutionizing various industries by automating tasks, optimizing processes, and providing valuable insights. These solutions utilize advanced algorithms and techniques such as machine learning, natural language processing, and computer vision to analyze large amounts of data and make intelligent decisions. From customer service chatbots and recommendation systems to predictive maintenance and fraud detection, AI solutions are transforming businesses and improving efficiency, productivity, and customer satisfaction. As technology continues to advance, the capabilities of AI solutions will only continue to grow, offering even more opportunities for innovation and improvement across diverse sectors. Increasing adoption of fruit-based beverages is anticipated to propel market growth.

The rising utilization of artificial intelligence drives market expansion

The growing adoption of AI drives demand for AI solutions in the market because businesses and industries seek to leverage AI technology to improve efficiency, productivity, and innovation in various domains, such as healthcare, finance, manufacturing, and customer service. This increased demand for AI solutions creates opportunities for companies specializing in AI development, leading to market growth.

While various AI technologies and applications such as machine learning, natural language processing, and predictive analytics are widespread, recent data from BTOS indicates a contrary trend. According to surveys conducted between October 23 and November 5, 2023, only an estimated 3.9% of businesses utilized AI to produce goods or services. However, adoption rates varied significantly across different economic sectors. In the Information sector, for instance, 13.8% of businesses reported using AI, surpassing the national average. Similarly, the Professional, Scientific, and Technical Services sector exhibited a notable adoption rate of 9.1%. Conversely, sectors like Accommodation and Food Services demonstrated lower levels of AI adoption, with only 1.2% of businesses utilizing AI technology.

The AI solutions market for computer vision is projected to grow

The rapid adoption of artificial intelligence in various industries has enabled the improvement of the workflow. Computer Vision plays an important role by allowing companies and users to utilize AI to automatically process and analyze digital images and videos which is significantly helpful in the era of social media. Further, these solutions have a tremendous application in the fields of security and surveillance, autonomous vehicles, healthcare, medical research, the BFSI sector, and so on.

Moreover, high internet penetration is making such solutions more feasible across the globe. According to the World Bank, 59.94% of the global population had access to the internet in 2020. International Telecommunication Union (ITU) estimates around 4.9 billion people will be using the internet in 2021. The internet penetration rate is significantly high in the developed economies, accounting for 88.3 percent by ITU. The following chart shows the percentage of individuals having access to the Internet.

Computer Vision solutions provide a range of solutions like real-time prediction, facial recognition, age, and gender detection. Developments like mergers, acquisitions, and collaborations are anticipated to notably influence the demand for these solutions. For instance, Hailo, a chipmaking company has partnered with Cvedia, a known computer vision software company to make thermal edge AI solutions in March 2022. The objective of the collaboration was to overcome the gap in publicly available thermal training data to develop effective security, surveillance, and Advanced Driver Assistance Systems (ADAS) solutions, which may incorporate biometric capabilities like face recognition and eye-tracking. Further, in November 2023, Innovapptive announced a ground-breaking cooperation and the launch of its joint AI-Connected Worker Platform with Deloitte Australia. This cutting-edge solution integrates Deloitte's Equipment Condition Supervisor Platform, a condition monitoring platform with computer vision artificial intelligence (AI), with Innovapptive's Mobile First Inspections and Rounds SaaS Solution. 

Furthermore, in January 2024, CGI announced the release of CGI Machine Vision, a new computer vision solution that transforms asset and infrastructure monitoring via the application of artificial intelligence (AI). Owing to the solution, businesses from all sectors may now enhance their operations, boost productivity, and cut expenses by obtaining business insight that was previously unattainable with conventional monitoring systems or human-only inspection.

Additionally, in September 2023, the premier computer vision cloud platform, Landing AI, announced the opening of the Landing AI App Space, a new application and use case repository designed to assist developers in producing unique Landing AI-based computer vision solutions more rapidly.

As the advent of AI-based solutions is growing significantly along with it the investment in sectors like healthcare, medical research, and automotive, is propelling the market growth. Another factor that helped the development of AI solutions including computer vision is the improvement of infrastructural facilities like data centers, and internet connectivity, among others

The market is projected to grow in the North American region.

The United States has a strong innovation ecosystem that is aided by significant federal investments in sophisticated technology, as well as the presence of world-renowned academic institutions and creative scientists and entrepreneurs. Retail, healthcare, BFSI, manufacturing, as well as other vital industries in the country, are investing heavily in this technology. The presence of several market participants continues to support market growth. Several market leaders are creating a competitive strategy by delivering solutions such as AI Chatbots for banking.

Compared to other cutting-edge technologies, the automation of labor-intensive jobs is a more prevalent reason for businesses to embrace AI and robotics.  As per the Census Bureau of the United States, the adoption of AI and Robotics to automate processes was 54% and 66% respectively in the year 2022.

Furthermore, growing data creation drives demand for sophisticated analytics and machine learning technology, which has a substantial influence on the US market for AI solutions. Large volumes of data are being collected by businesses and organizations from a variety of sources, including sensors, social media, and Internet of Things (IoT) devices. As a result, there is an urgent need to mine this data for insightful information and useful knowledge. AI solutions facilitate the efficient analysis, interpretation, and utilization of data, empowering organizations to make informed decisions, optimize operational effectiveness, and attain a competitive edge.

The intense competition within the industry is predicted to bring in investments, boost collaboration, and lead to innovation and the development of new solutions in the United States., edge, and PC.

Meanwhile, global content and technology giant Thomson Reuters unveiled several GenAI projects aimed at revolutionizing the legal industry in November 2023. The most notable of these efforts is the introduction of GenAI into AI-assisted research on Westlaw Precision, the most cutting-edge legal research platform.  

Further, several government endeavors for the development of AI technology in the United States are likely to have a favorable impact on the market. For example, the US Congress enacted the Omnibus Appropriations Bill in 2021, which included money for several military AI projects. The bill aims to increase the affordability and efficacy of military operations by supporting the Department of Defense's artificial intelligence efforts. It comprises US$137 million for a Joint Artificial Intelligence Center, which received new purchasing power in the National Defense Authorization Act of 2021. Natural language processing, which is being utilized in chatbots, and contract intelligence, where AI scans free text in agreements and non-compliance in documents, are creating profitable opportunities in the industry.

Key Market Developments:

• October 2022, Dynam Al, an AI software development company specializing in automating crucial decision-making in the industrial sector, joined forces with CloudFactory, a prominent provider of human-in-the-loop AI technology. This partnership agreement enables both firms to enhance the implementation of AI solutions for decision-making processes. Additionally, users of Dynam.AI will gain access to CloudFactory's team of data analysts, facilitating the creation of large-scale, high-quality datasets.
• February 2024, a leading provider of technology services and consulting, Wipro Limited announced the release of a new service called Wipro Enterprise Artificial Intelligence (AI)-Ready Platform, which enables customers to build fully integrated, customized, enterprise-level AI environments.  Moreover, in December 2023, Intel unveiled an unparalleled array of AI technologies at its "AI Everywhere" launch in New York City, enabling customers' AI solutions across the data centre, cloud, network.

Segmentation:

By Deployment

• Cloud
• On-Premise

By Function

• Computer Vision
• Machine Learning
• Natural Language Processing
• Forecasting and Optimization

By Industry Vertical

• Automotive
• Consumer Electronics
• Healthcare
• Pharmaceuticals
• Food and Beverage
• Manufacturing
• Others

By Geography

• North America
• USA
• Canada              
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• UK
• Germany
• France
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others