Applied Artificial Intelligence (AI) Market Report 2024

This Applied Artificial intelligence (AI) market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The applied artificial intelligence (AI) market size has grown exponentially in recent years. It will grow from $139.63 billion in 2023 to $177.28 billion in 2024 at a compound annual growth rate (CAGR) of 27%. The growth during the historic period can be attributed to the increased availability of data, the rising adoption of cloud computing, growing demand for automation, investment in AI research and development, and regulatory and compliance requirements.

The applied artificial intelligence (AI) market size is expected to see exponential growth in the next few years. It will grow to $462.6 billion in 2028 at a compound annual growth rate (CAGR) of 27.1%. The anticipated growth during the forecast period can be attributed to the expansion of AI capabilities, a growing focus on AI ethics and governance, the rise of edge computing, increasing AI-driven personalization, and enhanced collaboration between AI providers and industry leaders. Key trends expected in this period include the integration of AI with the Internet of Things (IoT), advancements in AI technology, AI-powered automation, AI-driven decision support systems, and AI-enhanced cybersecurity solutions.

The rising availability of data is expected to boost the growth of the applied artificial intelligence (AI) market in the future. Data availability refers to how accessible and usable data is for analysis and decision-making. The increase in data availability is driven by the widespread use of digital devices, the expansion of the internet, and advancements in data storage and processing technologies, which allow for greater collection, storage, and access to data. Applied AI capitalizes on this increased data availability to enhance decision-making, improve predictive analytics, and optimize operations across various sectors by analyzing large volumes of accessible data more effectively. For example, a December 2022 report from The Linux Foundation noted a significant growth in data for average end-user organizations, reaching 2,208 TB, a 215.43% increase from the 700 TB reported in 2021. Thus, the growing availability of data is expected to drive the applied AI market's expansion.

Leading companies in the applied AI market are concentrating on AI-driven personalization tools, such as AI-powered website assistants, to improve user experience, boost customer engagement, and increase conversion rates by offering tailored content and support. AI-powered website assistants are digital tools that use artificial intelligence to interact with users, providing personalized help, answering questions, and enhancing the overall website experience. For instance, in June 2024, Cognistx, a US-based applied AI firm specializing in multi-strategy AI systems for complex business challenges, introduced SQUARY. This AI-powered website assistant adapts based on user interactions, using machine learning to understand user intent and deliver precise, personalized responses. It integrates with existing systems to align with organizational objectives. In healthcare, SQUARY provides verified medical information and appointment scheduling, while in education, it helps with course queries, study resources, and assignments.

In July 2024, Applied Systems, Inc., a US-based leader in cloud-based software solutions for the insurance industry, acquired Planck for an undisclosed sum. This acquisition will enable the company to leverage AI throughout the insurance lifecycle, enhancing key business processes such as marketing, sales, underwriting, renewals, servicing, and advisory services. This move is expected to advance intelligent automation and further develop digital insurance processes for agencies, carriers, and their clients. Planck, based in Israel, specializes in data-driven AI and machine learning solutions for optimizing insurance underwriting and risk management.

Major companies operating in the applied artificial intelligence (AI) market are Apple Inc., Alphabet Inc., Microsoft Corporation, Meta Platforms Inc., Amazon Web Services Inc., Intel Corporation, International Business Machines Corporation, Salesforce Inc., NVIDIA Corporation, Baidu Inc., SAS Institute Inc., HubSpot Inc., Databricks Inc., UiPath Inc., Anthropic PBC, Mango Technologies Inc. (ClickUp), Freshworks Inc., C3.ai Inc., DataRobot Inc., OpenAI L.P., Pipedrive OÜ, Jasper AI Inc., H2O.ai Inc., Deep North Inc., Gridspace Inc.

North America was the largest region in the applied artificial intelligence (AI) market in 2023. The regions covered in the applied artificial intelligence (AI) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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

Applied artificial intelligence (AI) involves the practical application of AI technologies and methods to address specific real-world problems or enhance processes across various industries. It utilizes techniques such as machine learning, natural language processing, and robotics to automate tasks, analyze data, and improve decision-making.

The primary types of technology in applied AI include machine learning, natural language processing (NLP), computer vision, expert systems, and others. Machine learning (ML), a subset of AI, allows systems to learn from data and improve performance over time without explicit programming, playing a crucial role in creating models that enhance decision-making and automation across different sectors. Components include software and services, with deployment options such as cloud-based and on-premises. Applications span healthcare, automotive, retail, finance, manufacturing, and other industries, serving both large enterprises and small and medium enterprises (SMEs).

The applied artificial intelligence (AI) market research report is one of a series of new reports that provides applied artificial intelligence (AI) market statistics, including applied artificial intelligence (AI) industry global market size, regional shares, competitors with an applied artificial intelligence (AI) market share, detailed applied artificial intelligence (AI) market segments, market trends and opportunities, and any further data you may need to thrive in the applied artificial intelligence (AI) industry. This applied artificial intelligence (AI) 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 applied artificial intelligence (AI) market consists of revenues earned by entities by providing services such as managed AI services, customized AI solutions, AI consulting, and implementation. The market value includes the value of related goods sold by the service provider or included within the service offering. The applied artificial intelligence (AI) market also includes sales of AI software, AI hardware, and AI platforms. 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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