According to a recent comprehensive report published by Grand View Research, Inc., the global artificial intelligence (AI) market size is anticipated to reach an impressive valuation of USD 1,811.75 billion by the year 2030. The market is forecasted to experience a robust growth rate with a compound annual growth rate (CAGR) of 35.9% between 2025 and 2030, reflecting rapid expansion and increasing adoption of AI technologies worldwide.

Artificial Intelligence (AI) broadly refers to the concept, design, and development of advanced computing systems capable of performing a wide range of tasks that traditionally require human intelligence. These tasks include decision-making, recognizing speech, perceiving visual inputs, and translating languages. AI systems rely heavily on sophisticated algorithms that enable machines to comprehend and interpret human speech, visually identify and classify objects, and efficiently process vast amounts of information. These algorithms facilitate functions such as data processing, complex calculations, and automated logical reasoning. However, conventional algorithms face inherent limitations, especially regarding their accuracy and operational efficiency, which drives ongoing efforts in AI research to refine and enhance these algorithms continually.

These technological advancements have inspired manufacturers and technology developers to prioritize the development of standardized and optimized AI algorithms. Recently, several breakthroughs have been achieved to improve the performance and reliability of AI algorithms. For example, in May 2020, the International Business Machines Corporation (IBM) launched an extensive portfolio of AI-powered solutions called IBM Watson AIOps. These innovative services are specifically designed to automate enterprise IT infrastructures, enhancing system resilience while simultaneously aiming to reduce operational costs.

Numerous companies across industries are increasingly integrating AI-based solutions such as Robotic Process Automation (RPA) to optimize business workflows, particularly by automating repetitive and routine tasks to boost efficiency. Furthermore, the fusion of AI technologies with the Internet of Things (IoT) has created more powerful and resilient business solutions, enabling enhanced data collection and analysis. A notable example is the strategic partnership between Microsoft and OpenAI—a San Francisco-based AI research company—where Microsoft committed an investment of USD 1 billion to develop cutting-edge AI supercomputing technology, which is deployed on Microsoft’s Azure cloud platform.

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Artificial Intelligence Market Report Highlights

• Software solutions dominated the market, accounting for 35.0% of the global revenue in 2024. This leading position is attributed to significant advances in information storage capacity, enhanced computing power, and parallel processing capabilities, all of which enable delivery of high-end AI services.

• The operations segment captured the largest revenue share in 2024. This segment is critical as it encompasses the day-to-day business activities necessary for delivering products and services to customers, effectively serving as the engine driving enterprise performance.

• Within industry verticals, the advertising and media segment led the market with the highest revenue share in 2024. This dominance reflects the growing adoption of AI in marketing applications, which are gaining substantial traction due to their ability to enhance customer targeting and engagement.

• Among AI technologies, the deep learning segment held the largest revenue share in 2024. This is due to the increasing use of deep learning for complex, data-driven applications such as text, content, and speech recognition, where it has demonstrated superior performance.

• Geographically, the North America AI market accounted for a 29.5% revenue share in 2024, driven primarily by favorable government initiatives and policies designed to promote the adoption of AI technologies across diverse industries.

Artificial Intelligence Market Segmentation

Grand View Research has segmented the global artificial intelligence market report based on solution, technology, function, end use, and region:

Artificial Intelligence Solution Outlook (Revenue, USD Billion, 2017 - 2030)

• Hardware

o Accelerators

o Processors

o Memory

o Network

• Software

• Services

o Professional

o Managed

Artificial Intelligence Technology Outlook (Revenue, USD Billion, 2017 - 2030)

• Deep Learning

• Machine Learning

• Natural Language Processing (NLP)

• Machine Vision

• Generative AI

Artificial Intelligence Function Outlook (Revenue, USD Billion, 2017 - 2030)

• Cybersecurity

• Finance and Accounting

• Human Resource Management

• Legal and Compliance

• Operations

• Sales and Marketing

• Supply Chain Management

Artificial Intelligence End-Use Outlook (Revenue, USD Billion, 2017 - 2030)

• Healthcare

• BFSI

• Law

• Retail

• Advertising & Media

• Automotive & Transportation

• Agriculture

• Manufacturing

• Others

Artificial Intelligence Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America

• Europe

• Asia Pacific

• South America

• Middle East and Africa (MEA)

List of Key Players in Artificial Intelligence Market

• Advanced Micro Devices

• AiCure

• Arm Limited

• Atomwise, Inc.

• Ayasdi AI LLC

• Baidu, Inc.

• Clarifai, Inc

• Cyrcadia Health

• Enlitic, Inc.

• Google LLC

• H2O.ai.

• HyperVerge, Inc.

• International Business Machines Corporation

• IBM Watson Health

• Intel Corporation

• Iris.ai AS.

• Lifegraph

• Microsoft

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