The rising adoption of AI-powered technologies is anticipated to openup the new avenues for Enterprise Artificial Intelligence (AI) Market
The Enterprise Artificial Intelligence (AI) Market is estimated to be valued at US$ 21.48 Bn or Mn in 2023 and is expected to exhibit a CAGR of 34.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Enterprise artificial intelligence refers to the use of AI technologies within organizations to analyze data, automate tasks, recognize patterns and support decision making. Many organizations are implementing AI solutions to improve operational efficiency, enhance customer experience, gain competitive advantage and develop new revenue streams. AI technologies like machine learning, deep learning and natural language processing are being used to automate cybersecurity, manage fraud detection, personalize marketing campaigns, optimize supply chains and streamline back-office tasks. AI assistants and chatbots are also being widely adopted by enterprises to improve customer service and support functions.
Market Dynamics:
The growing generation of large volumes of data across organizations and the rising need to gain deeper insights from data to drive business decisions are major drivers of the enterprise AI market. As digital transformation initiatives gather pace, enterprises are increasingly leveraging AI to crunch data, gain actionable insights and automate routine tasks. In addition, rising focus on enhancing customer experience is also propelling the demand for AI-powered chatbots, virtual assistants and predictive analytics. However, lack of skilled AI workforce and integration challenges with legacy systems are some factors that may hamper the market growth.
Segment Analysis
The global enterprise artificial intelligence (AI) market can be segmented on the basis of technology, deployed model, enterprise size, application, vertical, and region.
By technology, the machine learning segment dominated the market in 2022 due to its wide-scale adoption for developing new-age AI solutions. Machine learning allows systems to learn automatically from data without being explicitly programmed and is useful in predictive analytics applications.
PEST Analysis
Political: AI regulations are still evolving which creates uncertainty. However, governments globally are supportive of AI and are investing in its research and development.
Economic: Enterprise AI helps businesses reduce costs and optimize operations. It is estimated that AI could boost global GDP by $15.7 trillion by 2030.
Social: There are concerns around job losses due to AI adoption. However, it is also creating new job opportunities that require human skills like reasoning, planning and social abilities.
Technological: Advancements in machine learning, deep learning, computer vision and natural language processing have increased the capabilities of AI systems. Cloud adoption is also making AI more accessible to businesses.
Key Takeaways
The Global Enterprise Artificial Intelligence (AI) Market Size is expected to witness high growth, exhibiting CAGR of 34.% over the forecast period, 2023 to 2030, due to increasing adoption across industries for automating business processes and enhancing customer experience.
Regionally, North America dominated the global market in 2022 due to significant investments in AI by leading technology companies such as Alphabet Inc., Amazon Web Services, Inc., International Business Machines Corporation, and Microsoft Corporation in the region. However, Asia Pacific is expected to witness the highest growth during the forecast period owing to growing digital transformation initiatives by Chinese enterprises.
Key players operating in the enterprise artificial intelligence (AI) market are Alphabet Inc., Apple Inc., Amazon Web Services, Inc., International Business Machines Corporation, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP SE, Verint Systems Inc., Wipro Limited, and Others. Major players are focused on partnerships and mergers & acquisitions to expand their product portfolio and strengthen their position in the market.