Enjoy complimentary customisation on priority with our Enterprise License!
The Enterprise Artificial Intelligence (AI) Market size is projected to increase by USD 48,960 million, at a CAGR of 46.52% between 2023 and 2028. The growth rate of the market depends on several factors, including the increasing interest in chatbot AI, the rising demand for automation among enterprises, and the focus on intelligent business models.
For More Highlights About this Report, Download Free Sample in a Minute
Rising demand for automation among enterprises is the key factor driving market growth. Businesses are increasingly recognizing the transformative potential of artificial intelligence in automating routine tasks, streamlining processes, and augmenting overall operational efficiency. In addition, as enterprises seek to optimize their workflows and reduce manual interventions, AI technologies play a pivotal role. Automation not only accelerates processes but also minimizes errors, leading to improved productivity and cost-effectiveness.
Moreover, the versatility of AI solutions in addressing varied business needs further propels the growth of the global enterprise artificial intelligence (AI) market. The ongoing digital transformation journey of enterprises, where automation is a key enabler, further underscores the significance of AI technologies in shaping the future landscape of business operations. The demand for automation is expected to increase, which will drive market growth during the forecast period.
Increasing focus on AI-ready solutions is the primary trend shaping market growth. Several businesses across the globe are using AI-ready solutions to incorporate AI into business strategies. Enterprises can plug AI-ready tools into any element of their business workflow that involves data. Leveraging tools, such as sentiment analysis, classification, and prediction algorithms, allows several businesses to derive useful insights from large amounts of data.
Additionally, aligned with market trends and analysis, SMEs can use third-party AI-ready tools with easy-to-use interfaces and efficient machine-learning functionality to manage their data workflow. Workflow automation coupled with business intelligence through AI tools will save businesses time and money while enabling them to stay competitive in the data-driven economy. This, in turn, will drive market growth during the forecast period.
The complexity of understanding data is a challenge that affects market growth. The current AI technologies, which include IBM Watson, find it difficult to process information as humans do. This is because most of the information is processed as data and not as a language. Contextual issues arise because AI processes the information as spatial text. Natural language needs to be processed in the right context. Context can only be developed when the language is understood and not only by reading words. The final issue is that of understandability.
Also, AI technologies need to process the data and reach the right understanding to make decisions. Without any understanding capability, AI technology will not be able to resolve complex issues. Furthermore, AI strategies do not understand the needs of data. This is a major challenge for enterprise AI as several AI tools need to analyze huge volumes of information that are processed continuously. Issues related to language, context, and reasoning need to be overcome by enterprise AI. This, in turn, will impede the growth of the market during the forecast period.
The market share growth by the on-premises segment will be significant during the forecast period. In the on-premises deployment model, AI infrastructure is installed within the customer's premises. One of the major drivers for the growth of the segment is the increasing need for security. Buyers want to have complete control over hardware and software. Thus, they prefer on-premises AI infrastructure over cloud-based AI infrastructure. Many major clients across the world require AI infrastructure to be installed on-premises. This increases the security level of the data that is being processed. Several firms are adopting on-premises AI.
Get a glance at the market contribution of various segments Download the PDF Sample
The on-premises segment showed a gradual increase in the market share of USD 900 million in 2018. Firms that increase their initial investments in AI enterprise infrastructure will most likely invest in storage devices that can support large amounts of information. Several firms are expected to invest large amounts in hardware and software required for enterprise AI. However, the major drawback of on-premises AI infrastructure is the upfront capital expenditure required for installation. This discourages customers from adopting on-premises AI infrastructure. This is expected to have a negative impact on the growth of the on-premises segment of the global market during the forecast period.
AI in advertising, entertainment, and media is gaining momentum, driven by its potential in anomaly detection, personalized content creation, and marketing applications. Enterprises in this sector utilize AI solutions to cut production costs and enhance operational efficiency. The media and entertainment industry, spanning TV, print, films, advertising, animation, gaming, and music, is undergoing rapid digital transformation. AI finds extensive applications in filmmaking, aiding in script generation and promotional efforts, while emotion AI enhances gaming experiences. These use cases demonstrate AI's pivotal role in reshaping traditional business functions in the advertising, media, and entertainment domains. Numerous enterprises across the sector will focus on incorporating AI, thereby driving the growth of the advertising, media, and entertainment segment of the market during the forecast period.
For more insights on the market share of various regions Download PDF Sample now!
North America is estimated to contribute 37% to the growth of the global market during the forecast period.
Technavio's analysts have provided extensive insight into the market forecast, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. North America dominates the global market, driven by widespread AI adoption by companies like IBM, Intel, and Microsoft. Collaborative efforts in AI system development are notable, with the BFSI sector, including Wells Fargo and Bank of America, integrating AI for operational enhancement. The US government emphasizes AI's positive impact on education, healthcare, policing, and transportation. IBM's acquisition of Sentaca in 2022 and the region's booming e-commerce market further propelled market growth, enabling personalized campaigns and revenue growth for businesses during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is experiencing a paradigm shift amid the Fourth Industrial Revolution, characterized by the convergence of physical and advanced digital technologies like AI, IoT, and robotics. Enterprises employ autonomous mobility and enterprise software applications to streamline business processes and enhance efficiency. Cost reduction and improved business outcomes are achieved through continuous process improvement facilitated by analytics and AI-driven insights. Industrial automation, driven by intelligent robots and automated technologies, revolutionizes manufacturing processes across various industries.
Investments in advanced manufacturing, such as edge computing and digital manufacturing, optimize operating efficiency and quality. Moreover, the integration of speech analytics and AI governance ensures compliance and governance standards are met. Cloud and edge computing solutions offer scalability and information management, while private 5G networks enhance connectivity and data transmission. As the market embraces digital transformation, strategic investments in cutting-edge robotics and AI from Pittsburgh-based startups and industry leaders like Bank of America drive innovation and shape the future of industrial enzyme applications.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018-2028
Market Scope |
|
Report Coverage |
Details |
Page number |
182 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 46.52% |
Market Growth 2024-2028 |
USD 48,960 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
42.8 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Abacus.AI, Alphabet Inc., Alteryx Inc., C3.ai Inc., Databricks Inc., Dataiku Inc., DataRobot Inc., H2O.ai Inc., Hewlett Packard Enterprise Co., Hypersonix Inc., Intel Corp., International Business Machines Corp., Microsoft Corp., Oracle Corp., Salesforce Inc., SAP SE, SAS Institute Inc., Sentient.io, Snowflake Inc., and Wipro Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.