The global artificial intelligence (AI) software market size was exhibited at USD 138.4 billion in 2022 and is projected to attain around USD 1,094.52billion by 2032, growing at a CAGR of 22.97% during the forecast period 2023 to 2032.
Artificial intelligence software includes machine learning, voice recognition, and virtual assistants. It mimics human behavior by learning data patterns. AI software can recognize speech, images, and text to solve problems and develop better analytics. AI software is admired globally due to its supervision to manage the business and operating systems with reduced risk management techniques.
Artificial intelligence software is used in multiple sectors such as education, healthcare, automotive, IT & Telecommunication, defense, and BFSI. As more industries become dependent on AI techniques, the AI software market is expanding all over the globe.
The Covid-19 pandemic has fueled the artificial intelligence software market with opportunities in the healthcare sector. Meanwhile, the demand for automatic or self-driving cars has boosted the market in the automotive industry. The retail sectors are imposing AI software to get better data insights and manage operations while providing improved customer services. In contrast, the banking sector is seen implementing various strategies against fraudulent activities with the help of AI software. The AI software market is projected to show remarkable growth in the upcoming years.
Recent Developments:
- In December 2022, Wodify (a leading gym and studio management software company) launched WodifyRetain, an all-in-one gym management artificial intelligence software. This software aims to improve member retention with AI features to keep the member longer.
- In December 2022, SEPTA, a regional public transportation authority in Philadelphia, Pennsylvania, announced a new AI security software partnered with tech company ZeroEyes. SPETA will soon implement this AI software ‘Deep Zero’ that can detect raised firearms and directly notify law enforcement after a weapon has been identified.
- In November 2022, Amazon announced that the company would launch a new AI software, ‘Create with Alexa,’ that lets kids create stories with images, animation, and sound.
- In November 2022, Zenseact, an AI software company, launched a new generation of AI software ‘OnePilot.’ This AI software offers cars the next level of safety. With the launch of this AI software, the company aims to reduce traffic accidents and create safe roads.
Market Key Players:
The AI software market is spread globally with multiple key players involved. A few major players in the market are – Advanced Micro Devices, Baidu, Inc., Atomwise, Inc., International Business Machines Corporation, Oracle, Cisco, Google LLC, Intel Corporation, Microsoft, Lifegraph, and Cyrcadia Health.
Regional Stance:
Due to major key players such as Google Inc, Microsoft Corporation, NVIDIA Corporation, IBM Corporation, and Amazon Web Services, North America’s artificial intelligence software market is booming. Growing adaptation of AI software in electronic devices, the healthcare sector (especially post Covid-19 pandemic), and other developmental sectors have opened doors for investors in the North American region. Geographically, the U.S. and Canada are two major countries in the North American region that play a vital role in developing the AI software market. Canada has started implementing new strategies to grow the AI market overall. The Canadian Institute of Advanced Research is said to be participating and responsible for funding these new strategies. The AI software market in the North American region is projected to grow in the forecast period of 2023-2032
The artificial intelligence software market in Europe region is forecasted to grow with the research and innovation program undertaken by the European Commission to increase investments in the AI market in general, which offers benefits to the AI software market too. The Asia Pacific region is likely to grow in the forecast period of 2023-2032, mainly in India, China and Japan. The rise in retail, healthcare, manufacturing, and IT industries seeking AI security software is responsible for the growth. AI software is widely imposed in the Chinese retail sector. Meanwhile, increasing startups surge the demand for India’s artificial intelligence software market. In contrast, the artificial intelligence market in Japan is focused on the robotics sector. Real-time path planning, UAV drone control, and motion control are a few AI robotics software used in the Japanese market.
Brazil and Argentina show a growing number of startups in the region, which is responsible for the growth of the artificial intelligence software market in Latin America. The gulf countries in the Middle East are developed, whereas the African region is yet to match the AI software market competition. The Middle East favors investments in self-driven cars, which are projected to grow the AI software market in the forecast period of 2023-2032. For instance, the Saudi Ministry of Finance announced the approval of two AI software companies, Faceki and QVALON, that hold headquarters in the U.S.
Market Dynamics:
Driver: Enhanced demand for cyber security by all sectors
The development or advancement of technology has given rise to cyber threats and cyber-attacks, which have forced companies to adopt various cyber security measures to protect confidential information and data carried by networks. Integrated AI software for cyber security can spot malware on networks, prioritize the risks and protect the data sources. AI software in cyber security measures detects the threats that are becoming difficult for human analysts due to the massive generation of data.
Artificial intelligence software is seen as a vital tool in cyber security with its ability to assess the systems quickly and adequately. The enhanced demand for cyber security by all sectors, such as healthcare, education, automotive, defense, BFSI, and IT & telecommunication, will show predictable growth for the AI software market.
Restraint: Limited skill set or a limited number of artificial intelligence experts for the implementation
A limited skill set for implementing complex software hampers the artificial intelligence software market and is seen as a significant restraint. AI software demands expertise to develop, manage and implement it. Machine learning, deep learning, and cognitive computing are some of the vital technologies of AI.
A minor unintended error can cause a massive malfunction in the performance of AI software and drastically affect the outcomes. Since companies across the globe are investing in and adapting AI software for operating the business, being aware of its algorithms, techniques, and other working aspects has become necessary.
Opportunity: Rising demand for autonomous vehicles
The utilization of artificial intelligence software is rising in the automotive industry, which brings a widespread opportunity for the AI software market. AI software is used for self-driven cars, which detects the surroundings and collects data. Autos or vehicles can perform autonomously with machine learning techniques, image recognition, and voice processing applications.
The rising demand for self-driven cars or vehicles with intelligent navigation systems has opened doors for the AI software market. Artificial intelligence software can detect potential hazards to cars, making the vehicle safer. The demand for AI software is expandable and enormous in the developing automotive industry.
Challenge: Privacy & data security concerns
The performance of artificial intelligence software depends on the availability of input data. AI software generates enormous amounts of data from various sources all over the globe. Here, the chances of threats related to the data increase. Thus, privacy and data security are significant challenges for the AI software market.
Artificial intelligence software is being used by the BFSI sector, which carries a vast amount of confidential data. Due to a cyber-attack, the personal information of innumerable people falls under the dark web, where chances for fraudulent activities rise. However, many AI software providers have already worked on this barrier.
Source: https://www.precedenceresearch.com/artificial-intelligence-software-market
