ENTERPRISE ARTIFICIAL INTELLIGENCE (AI) MARKET ANALYSIS

The global Enterprise Artificial Intelligence (AI) market size was valued at US$ 16.02 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 34.1% from 2023 to 2030. AI-powered tools and solutions can automate repetitive tasks, extract valuable insights from large datasets, enable predictive analytics, and enhance decision-making capabilities.

Global Enterprise Artificial Intelligence (AI) Market: Regional Insights

The cities in North America and the federal agencies have deployed AI in law enforcement and border administration. Moreover, efficient cameras, surveillance drones, predictive policing, and financial fraud detection algorithms are the recent developments. Pertinent R&D in healthcare, autonomous vehicles, security and access control, and cyber security are expected to fuel the market growth. In addition, the increase in adoption of head-up display screens in smart wearables, luxury cars, and growth in venture capital investments boost the adoption of AI solutions. Moreover, the advancements in sensory technologies, growth in analysis of large internet-enabled data sets, and increase in applications of deep learning drive the market for artificial intelligence (AI) in North America. Whereas, the use of AI technology in classrooms and home is expected to significantly increase with the effective integration of face-to-face learning. In addition, numerous new startups are investing in AI technologies, which is anticipated to provide major growth opportunities for artificial intelligence (AI) in this region.

Figure 1: Global Enterprise Artificial Intelligence (AI) Market Share (%), By Region, 2022

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Global Enterprise Artificial Intelligence (AI) Market Drivers:

Increase in customer satisfaction and adoption of reliable cloud applications

In the past few years, machines have surpassed humans at recognizing speech, images, and faces. AI is being deployed across varied industry Industry Verticals to reduce costs, improve efficiency, and boost customer satisfaction by enhancing key areas of customer experience. Sooner or later, employees at call centers are expected to be replaced by AI machines widely to respond to enquiries and requests in every possible environment, whether online or offline. Moreover, rapid developments in powerful and affordable cloud computing infrastructures are also expected to have a strong impact on the growth potential of the global enterprise artificial intelligence (AI) market.

Increase in investment in AI technologies

The ability of the AI technology to analyze the collected data efficiently and forecast decisions through crucial algorithms helps in productivity improvement; for instance, Netflix suggests movies on the basis of users’ previous viewing experiences. In the current business scenario, AI has revolutionized the way of business management  through  integration  of  workflow  management  tools,  brand  purchase  advertising,  trend predictions, and other tools. These are the major factors that increase investment in AI technologies. Moreover, many small startups and tech companies have been investing in the adoption of open-source AI platforms to achieve higher efficiencies in their value chains. Moreover, the rise in availability of low-cost quality AI technologies is expected to also contribute toward the growth of the market.

Global Enterprise Artificial Intelligence (AI) Market Opportunities:

Recent developments in the emerging economies, such as China, Japan, and India, in various industry Industry Verticals, such as media & advertising, finance, retail, healthcare, automotive & transportation, and others, have created a major growth potential for AI in such regions. The long-term time and cost benefits provided by AI and enhanced investment in AI are the major growth factors, which have resulted in increased adoption of this technology in the developing regions.

Many players have been building better robot brains, which are anticipated to enable machines to operate autonomously; for instance, Rethink Robotics’ Baxter is a research robot, which is trained accordingly. Similarly, human-like robots are invented by Hanson Robotics, which can execute a peculiar conversation and recall personal history. Furthermore, development of smarter virtual assistants is also opportunistic for the overall market. A notable illustration is Jarvis Corp, a start-up in the conceptual phases, to build a virtual assistant that answers questions by accessing the internet acts as an internet server and as a control for connected devices.

Global Enterprise Artificial Intelligence (AI) Market Trends:

Automated fraud detection systems in the BFSI sector are equipped with machine learning systems that identify illegal payment activities. Speech recognition technology is used to automate the telephonic customer service interactions in this industry. Currently, automated planners and financial advisors assist users to make efficient financial decisions. In addition, smart wallets learn and monitor behavioral patterns for making decisions about spending and saving (for example, wallet.AI). Whereas, AI has a significant growth opportunity for personalized financial services, wherein the services are provided in real time at lower costs, owing to the increased customized automation in this industry. Further, implementation of efficient systems that reduce fraudulent activities is opportunistic for the market.

Implementation of artificial intelligence (AI) has been increased by Google, Facebook, Amazon, IBM, Microsoft, and other technological companies for more effective advertising and marketing strategies. Further, the use of AI for automatically drafting narrative texts and articles about data-oriented topics in media is prevalent these days. The data volume has increased exponentially, with the increase in the use of mobiles, internet, social media, and low-cost sensors, which led to the development and innovations in techniques for analyzing and managing large data sets for better customer engagement. Ads that adapt according to the user reactions are projected to be a major growth factor for customer engagement and to further expand the market. Leveraging various AI platforms for improvement in advertisements and creating newer and effective models for attracting customers are huge growth opportunities for the market.

Global Enterprise Artificial Intelligence (AI) Market Restraints:

Lack of trained and experienced staff

Development of AI is possible after handling complex algorithms. Further, management of AI and automated systems is sometimes difficult. This requires exceptional software engineering skills and a notable experience of addressing distributed and concurrent programming or debugging with communication protocols. However, many regions, particularly the emerging economies, lack people with such skills. Hence, lack of skilled workforce is a prominent restraining force for the market.

Figure 2: Global Enterprise Artificial Intelligence (AI) Market Share (%), By Segment, 2022

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Global Enterprise Artificial Intelligence (AI) Market Segmentation:

The global Enterprise Artificial Intelligence (AI) market report is segmented into Deployment Type, Technology, Organization Size, and Industry Vertical.

Based on Deployment Type, the market is segmented into On-premise and Cloud. Out of which, Cloud segment is expected to dominate the global market over the forecast period and this is attributed to the cloud service providers who are offering the Artificial Intelligence (AI) services through wide-ranging stack, which include, cognitive computing, conversational AI, and other services. Cloud is accelerating the deployment and capabilities of Artificial Intelligence (AI) technologies at an extraordinary level. Cloud deployment of artificial intelligence (AI) allows training of machine learning models in the cloud and use AI platform predictions to gather marked values for new data. Also, enterprise can find AI components constructed by other teams within an enterprise and access AI content through cloud. For instance, Google Cloud allows deployment of AI technologies for experimentation and production on its hybrid infrastructures and Google Cloud AI. In addition, its Vision AI enables image analyzing in the cloud.

On-premise segment is also expected to witness significant growth in the near future and this is owing to the deployment of AI On-premise longing to embrace on to the company’s insights and internet protocols (IP).

Based on Technology, the market is segmented into Machine Learning, Natural Language Processing, Image Processing, and Speech Recognition. Out of which, Natural Language Processing is expected to dominate the global market over the forecast period and this is attributed to the AI is associated to human intelligence with similar characteristics, such as language understanding, learning, reasoning, problem solving, and others. Natural language processing (NLP) empowers computers to read and manipulate languages, with which computers can process or convert text into a structured data. Thus, humans can read or extract meaning from such simplified data.

Machine Learning segment is also expected to witness significant growth in the near future. Currently, machine learning is being increasingly deployed in a wide range of applications with a potential for performance improvement in activities generating large amounts of data. These applications include fraud screening, oil & gas exploration, sales forecasting, inventory management, and public health. Machine learning is one of the most progressive areas in cognitive technologies, playing a major role in computer vision cognitive technology. It trains vision models on a huge database of images to improve their ability to recognize objects. Moreover, this technology has a major growth potential in recognition of facial emotions; for instance, IBM launched Deep Learning as a Service (DLaaS), a new addition to its Watson Studio machine.

Based on Organization Size, the market is segmented into Large Enterprises and SME’s. Out of which, SME’s is expected to dominate the global market over the forecast period. Currently, the share of small and medium enterprises in AI market is low as compared to large enterprises, owing to the high cost involved in deploying AI technologies. However, the market is expected to grow at a significant rate during the forecast period, owing to an emerging trend of cloud-based services that deploy the artificial intelligence at a comparatively low price. Moreover, key industry players, such as IBM, Amazon, and Google, are focusing toward the introduction of affordable AI solutions for small and medium enterprises, which is also anticipated to provide growth opportunities for the market. Furthermore, growth in number of data sources and diversification of businesses are also expected to lead to the exponential growth of the enterprise artificial intelligence (AI) market.

Large Enterprises segment is also expected to witness significant growth in the near future. Large organizations have been using artificial intelligence (AI) to improvise their business outcomes. Large enterprises usually invest massive portions of their budgets in process optimization, owing to the presence of servers and critical resources within the network premises. Moreover, increase in adoption of artificial intelligence technologies such as machine learning, image processing, and others are expected to drive the market growth. For instance, big companies, such as Procter & Gamble (P&G), Disney, Tesco, and GE, have been moving toward digitization to sustain in the competitive market. These enterprises have started deploying AI technologies to improve the overall performance of their organization. Next IT Corporation has developed the Alme conversational platform, especially for healthcare professionals to facilitate personalized interactions. Which further helps physicians extend better personal care to the patients. Moreover, continuous demand for innovation, market insight, and need for highly specialized skills are expected to generate considerable demand for enterprise artificial intelligence market during the forecast period.

Global Enterprise Artificial Intelligence (AI) Market: Key Developments

In December 2021, Kyndryl, an IT infrastructure services provider, did a partnership with Google Cloud, a suite of cloud computing services. This strategic partnership was done to focus on accelerating customers’ digital transformations and helping them become more advanced, data-driven, and sustainable businesses.

In February 2022, IBM, a technology corporation, had acquired Sentaca, a leading telco consulting services and solutions provider. The acquisition will accelerate IBM's hybrid cloud consulting business, adding critical skills to help communications service providers (CSPs) and media giants modernize on multiple cloud platforms, innovate, and transform their businesses.

In May 2021, Google I/O, announced the availability of Vertex AI, a managed Machine Learning (ML) platform that allows companies to accelerate the deployment and maintenance of artificial intelligence (AI) models.

In November 2021, Oracle, a computer software company had launched Oracle Cloud Infrastructure (OCI) AI services, making it easier for developers to incorporate AI into their applications without needing data science knowledge. Developers can choose between using out-of-the-box models that have been pre-trained on business-oriented data or custom training the services using their data using the new OCI AI services.

Global Enterprise Artificial Intelligence (AI) Market: Key Companies Insights

The global Enterprise Artificial Intelligence (AI) market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global 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

*Definition: The Enterprise Artificial Intelligence (AI) market refers to the industry segment focused on the development, deployment, and adoption of AI technologies and solutions within enterprises. It encompasses the ecosystem of companies, products, and services that cater specifically to the integration and utilization of AI in enterprise settings.