Artificial Intelligence Software Market Report

Market Insights

The global artificial intelligence software market is expected to grow from USD 55.65 billion in 2022 to USD 570.35 billion by 2029 at a CAGR of 39.4% during the forecast period.

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What is Artificial Intelligence Software?

Artificial Intelligence software is a type of computer program that uses algorithms to analyze data, learn from it, and make decisions based on that learning. AI software can be used in a wide range of applications, from natural language processing to computer vision to predictive analytics. The software can be trained using large datasets and can continuously improve its performance over time.

Some examples of AI software include chatbots, image recognition software, and recommendation engines. AI software can help to automate tasks, improve decision-making, and provide personalized experiences for users. As the technology continues to advance, even more innovative applications of AI software are expected in various industries and domains.

Key Players

The major players operating in the global artificial intelligence software market are:

• IBM Corporation
• Microsoft Corporation
• Samsung Electronics CoLtd.
• Intel Corporation
• Amazon Web Services Inc.
• Facebook, Inc.
• SAP SE
• Nvidia Corporation
• Oracle Corporation
• Advanced Micro Devices, Inc.

Market Dynamics

Market Drivers

The growth of the artificial intelligence software market is primarily driven by the increased adoption of cloud-based applications and services, as well as the focus on improving operational efficiency within enterprises. Furthermore, the market is expected to receive a boost from the growing demand for intelligent virtual assistants and the increased adoption of big data analytics among small and medium-sized enterprises (SMEs).

Despite these positive trends, the market is hindered by challenges such as a lack of technical expertise and difficulty managing complex software. However, the adoption of various technologies such as the internet of things (IoT), machine learning, and industry 4.0 is expected to create lucrative opportunities for the global artificial intelligence software market.

Moreover, there has been an increasing adoption of big data among enterprises. Big data plays a crucial role in managing and mining vast amounts of data that are generated, and is recognized as one of the emerging trends in the artificial intelligence market. As the volume of structured and unstructured data within organizations continues to grow, there is an increasing demand for big data applications.

By learning from patterns in the data, AI and big data help to analyze information and enable companies to make intelligent decisions. As a result, enterprises are increasingly adopting AI solutions that are enabled by big data.

Market Restraints

There are several restraints that can hinder the growth of the Artificial Intelligence Software Market. These include lack of skilled workforce,  high cost of implementation,  data privacy and security concerns, lack of transparency and interpretability, and ethical and social concerns. The development and implementation of AI software require a highly skilled workforce.

However, there is a shortage of skilled professionals who are trained in AI technologies, which can slow down the market growth. The cost of implementing AI-based solutions can be quite high, especially for small and medium-sized enterprises. This can act as a barrier to entry for some companies, limiting the growth of the market.

The use of AI software involves handling large amounts of sensitive data. This raises concerns around data privacy and security, and companies must ensure that their AI solutions comply with data protection regulations. The decision-making process of AI systems is often seen as a “black box,” meaning that the logic behind the system’s decisions is not always transparent.

This can lead to a lack of trust in AI systems, hindering their adoption. As AI systems become more sophisticated and pervasive, there are concerns around the ethical and social implications of their use. These concerns can lead to regulations that limit the development and adoption of AI solutions.

Segment Analysis

Deployment Mode Insights

The market is segmented based on deployment into two categories: cloud-based and on-premise. The Cloud-Based segment is expected to have a higher CAGR during the forecast period. This is because cloud deployment offers several advantages such as lower operational expenses, easier implementation, and increased scalability.

As knowledge about the benefits of cloud-based solutions continues to grow, the use of cloud deployment for Natural Language Processing (NLP) and Machine Learning (ML) tools in AI is expected to increase. In response to the growing adoption of cloud technology by enterprises, AI solution providers are developing robust cloud-based solutions for their clients. Additionally, companies that rely on real-time analytics benefit from the cloud due to its operational flexibility and ease of real-time deployment.

End-user Insights

The healthcare industry is the fastest-growing sectors in the artificial intelligence software market. AI-powered medical imaging solutions are being developed to improve the accuracy and speed of diagnosis. These solutions can help radiologists to detect and diagnose diseases more efficiently.

AI is being used to accelerate the drug discovery process. Machine learning algorithms are being developed to analyze large datasets and identify potential drug candidates. AI is being used to develop personalized treatment plans based on a patient's individual characteristics, such as genetic makeup, medical history, and lifestyle.

AI-powered virtual assistants are being developed to improve patient care and communication. These assistants can provide patients with personalized recommendations and reminders, answer common questions, and provide information about their medical conditions. AI is being used to improve the accuracy and completeness of EHRs.

Machine learning algorithms can analyze medical records and identify potential errors, such as missing or incorrect information. Overall, the healthcare industry is expected to benefit significantly from the adoption of AI-powered solutions. These solutions have the potential to improve patient outcomes, reduce healthcare costs, and streamline administrative tasks.

Geographic Analysis

The global artificial intelligence software market is divided into five regions: North America, Europe, Asia Pacific, Middle East and Africa, and South America. During the forecast period, Asia Pacific is expected to have the highest CAGR. In this region, both small and medium-sized enterprises (SMEs) and large corporations have become more aware of government rules and compliances, and are actively implementing AI-based solutions.

The adoption of AI technology across various industries, including Banking, Financial Services and Insurance (BFSI), travel & hospitality, and retail, is expected to drive the rapid expansion of the Artificial Intelligence Software Market in Asia Pacific.

Research Methodology

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.

More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.

We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision making for the existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market Environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Product Portfolio, New Product Launches, etc.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com

Recent Developments

• In February 2023, C3 AI, an Enterprise AI application software company, expanded its Strategic Collaboration Agreement (SCA) with AWS to deliver AI solutions designed to solve customers’ crucial business challenges across a range of industries that includes defense and intelligence as well as state and local government.
• In January 2023, Microsoft and OpenAI extended their partnership to accelerate AI breakthroughs and ensure these benefits are broadly shared with the world.
• In December 2022, Samsung Electronics and NAVER collaborated to build semiconductor solutions optimized for Hyperscale AI.
• In October 2022, IBM announced an expansion to its embeddable AI software portfolio with the release of three new libraries designed to support IBM Ecosystem partners, clients and developers more easily, quickly and cost-effectively develop their own AI-powered solutions and bring them to market.