Artificial Intelligence Industry Overview

The global artificial intelligence market size was estimated at USD 196.63 billion in 2023 and is projected to grow at a CAGR of 36.6% from 2024 to 2030. The continuous research and innovation directed by tech giants are driving adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing. For instance, in December 2023, Google LLC launched ‘Gemini’, a large language AI model, made available in three sizes, namely, Gemini Nano, Gemini Pro, and Gemini Ultra. Gemini stands out from its competitors due to its native multimodal characteristic.

AI has proven to be a significant revolutionary element of the upcoming digital era. Tech giants like Amazon.com, Inc.; Google LLC; Apple Inc.; Facebook; International Business Machines Corporation; and Microsoft are investing significantly in research and development (RD) of AI, thus increasing the artificial intelligence market cap. These companies are working to make AI more accessible for enterprise use cases. Moreover, various companies adopt AI technology to provide a better customer experience and improve their presence in the artificial intelligence industry 4.0.

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

The essential fact accelerating the rate of innovation in AI is accessibility to historical datasets. Since data storage and recovery have become more economical, healthcare institutions and government agencies build unstructured data accessible to the research domain. Researchers are getting access to rich datasets, from historic rain trends to clinical imaging. The next-generation computing architectures, with access to rich datasets, are encouraging information scientists and researchers to innovate faster.

Furthermore, progress in profound learning and Artificial Neural Networks (ANN) has also fueled the adoption of AI in several industries, such as aerospace, healthcare, manufacturing, and automotive. ANN works in recognizing similar patterns and helps in providing modified solutions. Tech companies like Google Maps have been adopting ANN to improve their route and work on feedback received using ANN. ANN is substituting conventional machine learning systems to evolve precise and accurate versions.

For instance, recent advancements in computer vision technology, such as Generative Adversarial Networks (GAN) and Single Shot MultiBox Detector (SSD), have led to digital image processing techniques. For instance, images and videos taken in low light, or low resolution, can be transformed into HD quality by employing these techniques. Continuous research in computer vision has built the foundation for digital image processing in security surveillance, healthcare, and transportation, among other sectors. Such emerging methods in machine learning are anticipated to alter the manner AI versions are trained and deployed.

COVID-19 outbreak stimulated market growth of next-generation tech domains, including artificial intelligence, owing to mandated work-from-home (WFH) policy due to the pandemic. For instance, LogMeIn, Inc., a U.S.-based company that provides Software-as-a-Service (SaaS) and cloud-based customer engagement and remote connectivity collaboration services, has experienced a significant increase in new sign-ups across its product portfolios amid the pandemic.

Also, tech companies are expanding their product offerings and services to widen availability across the globe. For instance, in July 2022, Clarifai announced the launch of its ‘Clarifai Community’ free service for enabling everyone to share, create, and use The World’s AI. Moreover, it also announced the development of the ‘AI Lake’ product category, which collects and centralizes every AI resource of an enterprise, and offers tools for sharing across the enterprise.

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

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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
  • Accelerators
  • Processors
  • Memory
  • Network
• Software
• Services
  • Professional
  • 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
  • Robot Assisted Surgery
  • Virtual Nursing Assistants
  • Hospital Workflow Management
  • Dosage Error Reduction
  • Clinical Trial Participant Identifier
  • Preliminary Diagnosis
  • Automated Image Diagnosis
• BFSI
  • Risk Assessment
  • Financial Analysis/Research
  • Investment/Portfolio Management
  • Others
• Law
• Retail
• Advertising Media
• Automotive Transportation
• Agriculture
• Manufacturing
• Others

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

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa (MEA)
  • KSA
  • UAE
  • South Africa

Key Companies profiled:

• Advanced Micro Devices
• AiCure
• Arm Limited
• Atomwise, Inc.
• Ayasdi AI LLC
• Baidu, Inc.
• Clarifai, Inc.
• Cyrcadia Health
• Enlitic, Inc.
• Google LLC
• ai.
• HyperVerge, Inc.
• International Business Machines Corporation
• IBM Watson Health
• Intel Corporation
• ai AS.
• Lifegraph
• Microsoft
• NVIDIA Corporation
• Sensely, Inc.
• Zebra Medical Vision, Inc.

Recent Developments

• Open AI is developing an innovative artificial general intelligence (AGI) model code-named Project Q-Star. The model could have an immense impact on the overall AI market and provide breakthroughs in interactions with technology, process automation, and solving a few of the world’s most pressing issues.
• In March 2024, Microsoft and NVIDIA announced a collaboration focused on advancing AI for the healthcare and life sciences industry. This partnership leverages the strengths of both companies: Microsoft Azure's cloud infrastructure and advanced computing capabilities, alongside NVIDIA's DGX Cloud and Clara suite. The goal is to accelerate innovation and improve patient care through developments in areas like clinical research and drug discovery.
• In March 2024, NVIDIA launched new Generative AI Microservices designed to advance medical technology (MedTech), drug discovery, and digital health. These microservices leverage artificial intelligence (AI) to potentially improve healthcare technology.
• In January 2024, Google unveiled a new AI model, Lumiere. It is a text-to-video diffusion model capable of generating short video clips based on text descriptions. It can also be used to animate still images or apply a specific style to video generation.
• In December 2023, Google LLC released a new large language model (LLM) called Gemini. Gemini comes in three versions: Nano, Pro, and Ultra. A key feature of Gemini is its ability to handle multiple modalities, which differentiates it from competing LLMs.
• In November 2023, The University of Cambridge, along with Intel Corporation and Dell Technologies announced the implementation of the co-designed fastest AI supercomputer ‘Dawn Phase 1’. Leading technical teams built the supercomputer that mobilizes the power of both high-performance computing (HPC) and artificial intelligence for solving some of the world’s most critical challenges. This is projected to accelerate the future technology leadership and inward investment into the UK technology sector.

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