How the Artificial Intelligence Market Is Evolving

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.

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.

Order a free sample PDF of the Artificial Intelligence Market Intelligence Study, published by Grand View Research.