$4450
$3560
The artificial intelligence market size was valued at US$ 193.25 billion in 2024 and is expected to reach US$ 1,706.71 billion by 2031; it is estimated to register a CAGR of 37.8% during 2025–2031. The burgeoning popularity of agentic Al is likely to bring new market trends in the future.
Artificial Intelligence Market Analysis
The rising adoption across industries, government initiatives and investment to support the adoption of AI technology, and the burgeoning demand for multimodal AI are among the significant factors driving the global artificial intelligence market expansion. Further, increasing investments in industrial automation solutions and the growing popularity of agentic Al is likely to propel the demand for artificial intelligence in the future. Technological advancements and integration of advanced technologies such as machine learning, natural language processing (NLP), and robotic process automation (RPA); demand for generative Al; and development of explainable AI (XAI) and AI-powered cybersecurity solutions that reduce operating costs are expected to create opportunities for the market during the forecast period. An upsurge in the need for customized AI-based solutions, manufacturers' focus on developing small language models and open source advancements, and an increase in research and development activities also benefit the global artificial intelligence market.
Artificial Intelligence Market Overview
Artificial intelligence (AI) operates as a combination of technologies that allow computers to perform a wide range of advanced operations, such as reading, understanding, translating spoken and written language, analyzing data, and making suggestions. AI serves as the basis of current innovations in computing, creating value for individuals and enterprises. For example, optical character recognition (OCR) uses AI to extract text and data from photos and documents, transforming unstructured content into business-ready structured data and providing crucial insights. Industries use AI-based systems and software in a variety of applications, including speech recognition, image recognition, translation, predictive modeling, data analytics, and cybersecurity. Significant benefits offered by AI include 24 × 7 availability, repetitive task automation, fewer human errors, more and faster data insights, reduced physical risks, and enhanced decision-making.
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Artificial Intelligence Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Customize Research To Suit Your Requirement
We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Artificial Intelligence Market: Strategic Insights
Naveen
Have a question?
Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
Speak to Analyst
Artificial Intelligence Market Drivers and Opportunities
Government Initiatives and Investments Supporting AI Adoption
In January 2025, US President Donald Trump announced a private sector investment of up to US$ 500 billion to accelerate the development of AI infrastructure in the nation. The initiative is designed to strengthen America's competitive position in this vital sector. At the core of the announcement is a new joint venture called Stargate, formed by OpenAI, SoftBank Group Corp. (9984.T), and Oracle Corporation (ORCL.N). Stargate will focus on building advanced data center infrastructure in the country and is projected to generate over 100,000 new jobs nationwide. Backed by a coalition of equity partners, Stargate has already secured a US$100 billion initial investment for immediate deployment. The remaining US$400 billion is expected to be invested over the next four years as part of a phased capital allocation strategy. The initiative was formally launched at the White House, where SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison joined Trump to underscore their commitment to positioning the US as a global leader in AI.
Techs and consulting companies, including Accenture Plc, Contents SpA, Aleph Alpha GmbH, and Mistral AI, are investing in AI technology. In June 2023, Accenture Plc announced an investment of US$ 3 billion to accelerate the development of new AI-based solutions. The company is planning to use these solutions to help businesses from across 19 industries, such as manufacturing, retail, and healthcare. These investments are made to develop and implement AI technology in various processes to manage a high volume of data. Thus, initiatives and investments by governments and private organizations support the adoption of AI.
Soaring Demand for Generative Al
Generative AI enables firms to function efficiently and stay ahead of their competitors. Governments of various countries are organizing events to create awareness related to the benefits provided by generative AI. In April 2025, California Governor Gavin Newsom announced a new statewide initiative to integrate generative AI technologies across government functions. The initiative aims to leverage AI to optimize traffic management, enhance road safety, and improve public-facing services, such as customer support. In an official statement, Governor Newsom emphasized that the effort is focused on enhancing and not reducing government services, reinforcing the state's commitment to innovation-driven public sector improvement.
According to data released by Infosys Limited in December 2023, countries across the globe are investing in generative AI technology to streamline and automate operations, enhance product development, and optimize customer experiences. Between 2022 and 2023, France and Germany doubled their GenAI spending to approximately US$ 730 million and US$ 610 million, respectively. In both countries, ~50% of businesses have either deployed generative AI or have implemented and achieved business value from it. Roughly 40% of companies in the UK, Benelux, and Nordics invest in AI technology to improve their business operations. In December 2023, the UK surpassed Benelux to take third place, as its spending is likely to increase two-fold or more to reach approximately US$ 510 million. In 2023, companies in Nordic countries invested more than 2.5 times their present spending, totaling more than US$ 470 million in GenAI. Thus, the development of generative AI tools and models for managing business processes is expected to create future growth opportunities in the global artificial intelligence market.
Artificial Intelligence Market Report Segmentation Analysis
Key segments that contributed to the derivation of the artificial intelligence market analysis are component, organization size, and industry vertical.
- Based on component, the market is divided into hardware, software, and services. The market for the software segment is segmented into cloud-based and on-premise. The software segment dominated the market in 2024.
- By organization size, the global artificial intelligence market is categorized into large enterprises and SMEs. The large enterprises segment dominated the market in 2024.
- On the basis of industry vertical, the market is segmented into automotive, healthcare, manufacturing, retail and e-commerce, IT and telecom, BFSI, and others. The IT and telecom segment dominated the market in 2024.
Artificial Intelligence Market Share Analysis by Geography
- The artificial intelligence market is segmented into five major regions: North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South & Central America. North America dominated the artificial intelligence market in 2024. Europe is the second-largest contributor to the global artificial intelligence Market, followed by Asia Pacific.
- The artificial intelligence market in North America is categorized into the US, Canada, and Mexico. North America is home to tech giants such as Microsoft, Google, and Amazon, which invest heavily in AI research, cloud platforms, and generative AI. The venture capital funding for AI startups hit US$ 40 billion in 2023, fueling innovation. Government initiatives, such as the US National AI Initiative and Canada’s Pan-Canadian AI Strategy, support research and public-sector adoption. Key industries include healthcare (diagnostics), finance (fraud detection), and automotive (autonomous vehicles). A robust talent pool, bolstered by leading universities, strengthens the region’s position. However, regulatory fragmentation, such as California’s CCPA, and intense competition for AI talent increase costs. Cybersecurity risks and ethical concerns around AI bias also pose challenges, requiring businesses to prioritize compliance and transparency to maintain consumer trust and market dominance.
Artificial Intelligence Market Report Scope
Artificial Intelligence Market News and Recent Developments
The artificial intelligence market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Key the developments in the artificial intelligence market are listed below:
- IBM launched Watsonx AI Labs, a new, developer-first innovation hub in New York City designed to supercharge AI builders and accelerate AI adoption at scale. watsonx AI Labs connects IBM's enterprise resources and expertise with the next generation of AI developers to build breakthrough AI applications for business.
(Source: IBM, Press Release, June 2025)
- Accenture announced that Accenture Ventures has invested in Aaru, creators of the AI-powered prediction engine that simulates consumer behavior and preferences, driving stronger customer experiences, new growth opportunities, and speed-to-market. As part of this collaboration, Accenture Song intends to integrate Lumen—Aaru’s flagship model for the private sector—into its AI products and services across new product development, marketing, customer strategy, and customer service.
(Source: Accenture, Press Release, March 2025)
Artificial Intelligence Market Report Coverage and Deliverables
The "Artificial Intelligence Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
- Artificial intelligence market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Artificial intelligence market trends, as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST and SWOT analysis
- Artificial intelligence market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the artificial intelligence market
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
This text is related
to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The artificial intelligence market was valued at US$ 193.25 billion in 2024 and is projected to reach US$ 1,706.71 billion by 2031; it is expected to grow at a CAGR of 37.8% during 2025–2031.
Rising Adoption in Various Industries; Government Initiatives and Investments Supporting AI Adoption, and Surging Demand for Multimodal Al are the driving factors impacting the artificial intelligence market.
Burgeoning Popularity of Agentic AI is the future trends of the artificial intelligence market.
The key players, holding majority shares, in artificial intelligence market includes Microsoft Corp, Accenture Plc, International Business Machines Corp, NVIDIA Corp and Google LLC.
The artificial intelligence market is expected to reach US$ 1,706.71 billion in the year 2031.
The North America held the largest market share in 2024, followed by Europe.
The List of Companies - Artificial Intelligence Market
- Accenture Plc
- Advanced Micro Devices Inc
- Google LLC
- International Business Machines Corp
- Intel Corp
- Microsoft Corp
- NVIDIA Corp
- Amazon Web Services Inc
- SAP SE
- SAS Institute Inc.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
Trends and growth analysis reports related to Artificial Intelligence Market
Jul 2025
Flight Planning Software Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Deployment (Cloud and On-Premise), Application (Logistics and Cargo, Airport, Private Airlines, Commercial Airlines, Flight School and Training Center, and Military and Defense), and Geography
Jul 2025
Deepfake AI Detection Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Deployment (Cloud and On-Premises), Enterprise Size (Large Enterprises and SMEs), Industry Vertical (Media and Entertainment, BFSI, Government and Politics, Healthcare and Life Sciences, IT and Telecom, Retail and E-Commerce, and Others), and Geography
Jul 2025
Electronic Patient-Reported Outcomes (ePROS) Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Delivery Mode (Cloud Based and On-Premises), Application (Oncology, Respiratory, and Others), End User [Contract Research Organizations (CROs), Pharmaceutical Companies, and Others], and Geography (North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America)
Jul 2025
Travel and Expense Management Software Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Deployment Mode (On-Premise and Cloud), Organization Size (Large Enterprises and Small and Medium Enterprises), Industry (BFSI, IT and Telecom, Manufacturing, Healthcare, Government and Defense, Retail, Transport and Logistics, and Others), and Geography
Jul 2025
Online Exam Proctoring Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Type (Advanced Automated Proctoring, Recorded Proctoring, and Live Online Proctoring), Deployment (Cloud and On-Premises), End User (Educational Institutes, Enterprises, Government, and Online Learning Platforms), and Geography
Jul 2025
Manufacturing Execution System (MES) Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Services Type (Professional Services and Managed Services), Deployment (Cloud and On-Premise), Organization Size (Large Enterprises and SMEs), License Type (Subscription-Based and Licensed), Sales Channel (Direct Sales and Channel Partners), End User (Discrete Industry and Process Industry), and Geography
Jul 2025
Maritime Analytics Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Component (Software and Services), Deployment (Cloud and On-Premises), Application (Predictive and Prescriptive Analytics, Optimal Route Mapping, Pricing Insights, Vessel Safety and Security, and Others), End User (Commercial and Military), and Geography
Jul 2025
Environmental Consulting Service Market
Size and Forecast (2021 - 2031), Global and Regional Share, Trend, and Growth Opportunity Analysis Report Coverage: By Service Type (Investment Assessment and Auditing, Permitting and Compliance, Project and Information Management, Monitoring and Testing, and Others), Media Type (Water Management, Waste Management, and Others), Vertical (Energy and Utilities, Chemical and Petroleum, Manufacturing and Process Industries, Transportation and Construction Industries, and Others), and Geography