The global artificial intelligence (AI) market is projected to reach USD 1,811.75 billion by 2030, according to a recent report by Grand View Research, Inc. The market is expected to grow at a compound annual growth rate (CAGR) of 36.6% from 2024 to 2030. AI refers to the development of computing systems capable of performing tasks that typically require human involvement, such as decision-making, speech recognition, visual perception, and language translation. AI relies on algorithms to interpret human speech, recognize visual objects, and process information, with these algorithms playing key roles in data processing, calculations, and automated reasoning. Since traditional algorithms often have limitations in terms of accuracy and efficiency, AI researchers continually work to enhance these algorithms across various domains.

This ongoing advancement has led manufacturers and technology developers to concentrate on creating more standardized AI algorithms. In fact, there have been notable innovations in AI algorithms recently. For example, in May 2020, International Business Machines Corporation (IBM) launched a range of AI-powered services, including IBM Watson AIOps, which are designed to assist with automating IT infrastructures, making them more resilient and cost-effective.

Numerous companies are adopting AI-driven solutions like Robotic Process Automation (RPA) to streamline their workflows and automate repetitive tasks. Additionally, AI is being integrated with the Internet of Things (IoT) to enhance the outcomes of various business processes. A notable instance is Microsoft's investment of USD 1 billion in OpenAI, a San Francisco-based company, with the aim of developing AI supercomputing technology on Microsoft's Azure cloud platform.

Gather more insights about the market drivers, restrains and growth of the Artificial Intelligence Market

Key Highlights from the Artificial Intelligence Market Report:

• The rapid rise of big data is expected to contribute significantly to the growth of the AI market, as there is an increasing need to capture, store, and analyze large volumes of data.

• Growing demand for image processing and identification is anticipated to accelerate industry expansion.

• AI's ability to analyze vast amounts of data and detect patterns or anomalies makes it an effective tool for identifying potential cyberattacks, enabling quicker and more accurate threat detection, which in turn promotes AI adoption in cybersecurity applications.

• The use of AI in predictive maintenance, process automation, and supply chain optimization is helping businesses streamline operations, reduce costs, and ensure the efficient delivery of their products and services.

• North America led the market in 2022, accounting for over 36.8% of global revenue.

• However, a key challenge hindering industry growth is the need for vast amounts of data to train AI systems, particularly for tasks like character and image recognition.

Browse through Grand View Research's Next Generation Technologies Industry Research Reports.

• Edge AI Market: The global edge AI market size was estimated at USD 20.78 billion in 2024 and is anticipated to grow at a CAGR of 21.7% from 2025 to 2030.

• IoT Devices Market: The global IoT devices market size was estimated at USD 70.28 billion in 2024 and is expected to grow at a CAGR of 16.8% from 2025 to 2030.

Artificial Intelligence Market Segmentation

Grand View Research has segmented the global artificial intelligence market 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

o Robot Assisted Surgery

o Virtual Nursing Assistants

o Hospital Workflow Management

o Dosage Error Reduction

o Clinical Trial Participant Identifier

o Preliminary Diagnosis

o Automated Image Diagnosis

• BFSI

o Risk Assessment

o Financial Analysis/Research

o Investment/Portfolio Management

o Others

• Law

• Retail

• Advertising & Media

• Automotive & Transportation

• Agriculture

• Manufacturing

• Others

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

• North America

o U.S.

o Canada

• Europe

o U.K.

o Germany

o France

• Asia Pacific

o China

o Japan

o India

o South Korea

o Australia

• Latin America

o Brazil

o Mexico

• Middle East and Africa (MEA)

o KSA

o UAE

o South Africa

List of Key Players in the 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

• NVIDIA Corporation

• Sensely, Inc.

• Zebra Medical Vision, Inc.

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