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2024

AI and Machine Learning in Business Market

AI and Machine Learning in Business Market Size, Share, Competitive Landscape and Trend Analysis Report by Component, by Enterprise Size, by Application, by Industry Vertical : Global Opportunity Analysis and Industry Forecast, 2023-2032

IC : High Tech, Enterprise & Consumer IT

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Author's: Akanksha Pandey | Onkar Sumant
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AI And Machine Learning In Business Market Statistics, 2032

The global AI and machine learning in business market was valued at $120.9 Billion in 2022, and is projected to reach $190.5 Billion by 2032, growing at a CAGR of 32% from 2023 to 2032.

The AI and machine learning in business market is owing to the adoption of AI-powered chatbots for customer service, growing use of predictive analytics for decision making, and expansion of AI operations in cybersecurity to detect and respond to threats. Moreover, the integration of AI and machine learning into business processes is becoming more seamless, with a shift towards AI- driven automation and efficiency across industries further propelling the market growth in the business sector.

AI and Machine Learning in Business Market

Furthermore, surge in cost reduction and efficiency and digital transformation initiatives are primarily driving the AI and machine learning in business market growth. However, cost reduction and efficiency hamper the market growth. On the contrary, advancements in AI and machine learning technology are expected to provide lucrative opportunities for the market growth during the forecast period.

The AI and machine learning in business market refers to the use of artificial intelligence and machine learning technologies to enhance and automate various business processes and functions. This market encompasses a wide range of operations, such as customer service, marketing, sales, finance, operations, and human resources. AI and machine learning technologies allow businesses to analyze vast amounts of data, discover patterns and trends, make predictions, and automate operations that utilize human participation.

In addition, AI and machine learning in business market is fueled by the rapid growth of data generated by businesses and a need for advanced analytics tools to extract valuable insights. The businesses use AI and machine learning to analyze data, automate operations, make more educated decisions, and improve consumer experiences. This results in enhanced efficiency, cost savings, and competitive advantages. As AI and machine learning technologies advance, their usage is anticipated to increase across numerous sectors, fueling market development.

The report focuses on growth prospects, restraints, and analysis of the AI and machine learning in business market trends. The study provides Porter’s five forces analysis to understand the impact of numerous factors, such as the bargaining power of suppliers, the competitive intensity of competitors, the threat of new entrants, the threat of substitutes, and the bargaining power of buyers on the AI and machine learning in business market share.

Key Findings

  • By component, the solution segment accounted highest revenue for the AI and machine learning in business market share in 2022.
  • By application, the data analytics segment accounted highest revenue for the AI and machine learning in business market size in 2022.
  • By enterprise, the large enterprise segment accounted highest revenue for the AI and machine learning in business market size in 2022.
  • On the basis of end user, the financial services segment generated the highest revenue in 2022.
  • According to the AI and machine learning in business market analysis, region-wise, North America generated the highest revenue in 2022.

Segment review

The global AI and ML in business market is segmented on the basis of component, application, enterprise size, end user, and region. On the basis of component, the market is divided into solutions and services.  Depending on application, it is divided into predictive analytics, data analytics, supply chain and inventory management, and others. Depending on enterprise size, it is fragmented into large enterprises and small and medium-sized enterprises. On the basis of end user, the market is divided into retail, IT and telecom, manufacturing & logistics, financial services, energy sector (oil & gas), healthcare and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa.

AI and Machine Learning in Business Market by Component

On the basis of component, the solution segment dominated the AI and ML in business market in 2022 and is expected to maintain its dominance in the upcoming years, owing to the ability to help companies in improving decision-making processes, simplifying their operations, and increasing overall productivity. Companies are using these solutions more frequently in order to maintain their competitiveness in the quickly changing technological market, which propels the market growth significantly. However, the services segment is expected to witness the highest growth, as it helps organizations leverage the data generated by the global AI and machine learning in business to optimize their operations, gain valuable insights, and make informed decisions.

AI and Machine Learning in Business Market by Region

Region-wise, North America dominated the AI and ML in business market in 2022 and is expected to retain its position during the AI and machine learning in business market forecast period, to the continues technological advancements and the adoption of AI and machine learning for many industries such as business, healthcare and finance, aiding the growth of the AI and machine learning in business market. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to rapid economic growth, with countries such as China and India witnessing significant industrialization and urbanization. This growth creates a growing demand for advanced technologies like AI and machine learning to enhance productivity and competitiveness in businesses. Thus, these factors are propelling the market growth in this region.

Top Impacting Factors

Cost Reduction and Efficiency

Cost reduction and efficiency have been key factors driving the growth of the AI and machine learning in business market. By automating tasks and procedures, AI and machine learning reduce the need for human interaction, leading to significant savings in costs. These reducing expenses feature is especially appealing to businesses trying to increase their profits and maintain their competitiveness in the market.

In addition, AI and machine learning technologies enable businesses to get valuable information through advanced analytics. These insights assist businesses in making data-driven choices, optimizing processes, and allocating resources more efficiently. For instance, in supply chain management, AI can analyze data to forecast demand, optimize inventory levels, and reduce waste, this is leading to an improved efficiency and cost savings, which drives the market growth. 

Furthermore, the increasing amount of data from numerous sources such as social media, sensors, and devices is driving business need for AI and machine learning. This data explosion has created a demand for advanced analytics systems capable of processing and analyzing enormous amounts of data efficiently. For instance, in June 2023, Accenture company announced a $3 billion investment over three years in its Data & AI practice to help clients across all industries rapidly and responsibly advance and use AI to achieve greater growth, efficiency and resilience. 

Additionally, AI and machine learning enhance people's experiences by allowing businesses to personalize their products and services to individual preferences. This approach improves customer satisfaction and loyalty, leading to increased revenue for businesses. As businesses increasingly recognize the advantages of AI and machine learning in cost reduction and efficiency improvement, the demand for these technologies is expected to drive the market growth.

Digital Transformation Initiatives

Digital transformation initiatives are driving the growth of the AI and machine learning market in businesses by transforming operations and enhancing customer experiences. As organizations modernize their operations and adapt to the digital age, they are increasingly turning to AI and machine learning technologies to innovate, improve efficiency, and gain a competitive edge. One way in which digital transformation initiatives drive the growth of AI and machine learning is by fostering a culture of innovation and experimentation within businesses. Companies that embrace digital transformation are expected to explore and implement AI and machine learning solutions to automate processes, improve decision-making, and explore new business opportunities.

In addition, digital transformation initiatives often involve incorporating technologies and systems resulting in the generation of volumes of data. AI and machine learning heavily rely on data for algorithm training and insights provision. As companies amass data through their transformation endeavors there is a surge in demand for AI and machine learning technologies thereby driving market expansion.

For instance, in September 2023, the global EY organization (EY) announced the launch of EY.ai, a unifying platform that combines human capabilities with artificial intelligence (AI) to assist clients in transforming their organizations through the confident and responsible use of AI. The EY.ai combines cutting-edge EY technology platforms and AI capabilities with extensive experience in strategy, transactions, transformation, risk, assurance, and taxation, all supported by a comprehensive AI ecosystem.

Additionally digital transformation initiatives aim at improving customer experiences and engagement levels. AI and machine learning play a role in achieving this objective by empowering businesses to customize interactions, with customers to analyze their behavior patterns effectively and deliver tailored marketing strategies. As businesses increasingly prioritize customer-centric strategies, the demand for AI and machine learning technologies continues to grow, thereby driving the market growth. 

Competition Analysis

The key players operating in the AI and machine learning in business industry include Alibaba, Microsoft, Amazon, Google, IBM, Baidu, Tencent, Nvidia, Intel, and Salesforce. The report highlights the strategies of the key players to improve the market share and sustain competition in AI and machine learning in business industry .

Recent Developments in the AI and Machine Learning in Business Market:

In February 2024, IBM announced the availability of the popular open-source Mixtral-8x7B large language model (LLM), developed by Mistral AI, on its Watsonx AI and data platform, as it continues to expand capabilities to help clients innovate with IBM's own foundation models and those from a range of open-source providers.

In January 2024, Vodafone partnered with Microsoft Corp. that leverages their respective strengths in offering scaled digital platforms to more than 300 million businesses, public sector organizations, and consumers across Europe and Africa. Through this partnership, the companies collaborated to transform Vodafone’s customer experience using Microsoft’s generative AI; hyperscale Vodafone’s leading managed IoT connectivity platform; develop new digital and financial services for businesses, particularly SMEs across Europe and Africa; and overhaul its global data center cloud strategy.

In December 2023, The American Federation of Labor partnered with Congress of Industrial Organizations (AFL-CIO) and Microsoft Corp., to create an open dialogue to discuss how artificial intelligence (AI) must anticipate the needs of workers and include their voices in its development and implementation. This partnership helps to focus on AI and is expected to deliver on three goals: (1) sharing in-depth information with labor leaders and workers on AI technology trends; (2) incorporating worker perspectives and expertise in the development of AI technology; and (3) helping shape public policy that supports the technology skills and needs of frontline workers.

In November 2023, IBM launched a $500 million venture fund to invest in a range of AI companies from early stage to hyper-growth startups focused on accelerating generative AI technology and research for the enterprise.

In April 2023, Alibaba Cloud, the digital technology and intelligence basis of Alibaba Group, introduced the language model, Tongyi Qianwen. This new AI model is expected to be integrated across Alibaba’s various businesses to improve user experience in the near future. The company’s customers and developers are expected to have access to the model to create customized AI features in a cost-effective way

In January 2023, Baidu, Inc. a leading AI company with strong internet foundation, hosted its annual flagship developer conference Baidu Create 2022. The event was held virtually in XiRang, Baidu's metaverse app, as the company's first conference co-hosted by humans and robots. In addition to featuring several key technology advancements, Baidu Create offered an in-depth exploration of Baidu's research and analysis of future technology trends, covering a range of emerging technologies including artificial intelligence, autonomous driving, intelligent search, quantum computing, and AI scientific computing.

Key Benefits for Stakeholders

  • This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the AI and machine learning in business market analysis from 2022 to 2032 to identify the prevailing ai and machine learning in business market opportunities.
  • The market research is offered along with information related to key drivers, restraints, and opportunities.
  • Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
  • In-depth analysis of the ai and machine learning in business market segmentation assists to determine the prevailing market opportunities.
  • Major countries in each region are mapped according to their revenue contribution to the global market.
  • Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
  • The report includes the analysis of the regional as well as global ai and machine learning in business market trends, key players, market segments, application areas, and market growth strategies.

AI and Machine Learning in Business Market Report Highlights

Aspects Details
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Market Size By 2032

USD 1.9 trillion

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Growth Rate

CAGR of 32%

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Forecast period

2022 - 2032

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Report Pages

304

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By Component
  • Solution
  • Services
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By Enterprise Size
  • Large Enterprise
  • Small and Middle-sized Enterprise
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By Application
  • Predictive Analytics
  • Cyber Security
  • Supply Chain and Inventory Management
  • Others
  • Data Analytics
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By Industry Vertical
  • BFSI
  • IT and Telecom
  • Retail
  • Manufacturing and logistics
  • Energy sector and Utilities
  • Healthcare
  • Others
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By Region
  • North America  (U.S., Mexico, Canada)
  • Europe  (UK, Germany, France, Italy, Spain, Rest of Europe)
  • Asia-Pacific  (China, Japan, India, Australia, South Korea, Rest of Asia-Pacific)
  • Latin America  (Brazil, Argentina, Colombia, Rest of Latin America)
  • Middle East and Africa  (Saudi Arabia, South Africa, UAE, Rest of Middle East And Africa)
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Key Market Players

Microsoft Corporation, Alphabet Inc. (Google LLC), Amazon, Baidu, Tencent, Alibaba, IBM, Salesforce Inc., Intel Corporation., Nvidia

Analyst Review

The global AI and machine learning in business market is driven by a convergence of technological advancements, increasing data availability, and a growing demand for automation and predictive analytics across various industries. As organizations generate and gather massive volumes of data, there is a rising demand to use AI and machine learning technologies to extract significant information and make data-driven decisions in businesses which is expected to drive market growth.

In addition, advancements in AI and machine learning algorithms, coupled with increased computational power and cloud computing resources, are expanding the capabilities and scalability of these technologies, thereby boosting the market growth. Deep learning techniques, such as neural networks, are enabling machines to perform complex tasks with human-like accuracy, including image recognition, natural language processing, and autonomous decision-making. This evolution is driving innovation and opening new possibilities for businesses to develop intelligent systems and automation solutions tailored to their specific needs.

Furthermore, the rise in adoption of explainable AI (XAI), which focuses on making AI and machine learning algorithms as they are more transparent and understandable to humans fuels the market growth. Explainable AI is becoming increasingly important, especially in sectors where decision-making processes need to be explainable and accountable, such as business, healthcare and finance. Where the businesses are investing in AI and machine learning solutions that prioritize privacy and compliance with data protection regulations drives the market growth.

Author Name(s) : Akanksha Pandey | Onkar Sumant
Frequently Asked Questions?

The global AI and machine learning in business market was valued at $120.85 Billion in 2022 and is estimated to reach $1901.5 Billion by 2032, exhibiting a CAGR of 32.0% from 2023 to 2032

Cost Reduction and Efficiency and Digital Transformation Initiatives are the upcoming trends of AI and Machine Learning in Business Market in the world.

Advancements in AI and machine learning Technology is the leading application of AI and Machine Learning in Business Market

North America is the largest regional market for AI and Machine Learning in Business.

Alibaba, Microsoft, Amazon, Google, IBM, Baidu, Tencent, Nvidia, Intel, and Salesforce are the top companies to hold the market share in AI and Machine Learning in Business.

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AI and Machine Learning in Business Market

Global Opportunity Analysis and Industry Forecast, 2023-2032