Artificial Intelligence (AI) in Social Media Market

Artificial Intelligence (AI) In Social Media Market Research, 2031

The global artificial intelligence in social media market size was valued at $992.7 million in 2021, and is projected to reach $12 billion by 2031, growing at a CAGR of 28.7% from 2022 to 2031.

The COVID-19 outbreak had a positive impact on Artificial Intelligence (AI) in social media market. This is attributed to the rise in the trend of work from home model, which is compelling employers to use AI-based social media. This factor has had a significant impact on the use of AI in the social media market. In addition, people remained at home during the lockdown, which increased the usage of social media application likely to pave the market growth.

Social media platforms frequently utilize AI to enhance user experience, create content, target adverts, and provide better services. Furthermore, some common applications of AI in social media usage include personalized content recommendation, image and video recognition, fraud detection, and also for trend analysis. These are just some examples of how AI is being used in social media usage. The use of AI in social media is constantly evolving and new applications are being developed to provide users with even better experiences.

Rise in integration of AI in social media application for effective advertising and the growing popularity of AI in social media to provide real-time information on target audiences are driving the growth of the market. In addition, a surge in data generated through social media platforms is fueling the growth of the Artificial Intelligence in social media market. However, data security and privacy concerns limit the growth of this market. Conversely, the increased availability of machine learning programs for social media is anticipated to provide numerous opportunities for the expansion of the market during the forecast period.

The report focuses on growth prospects, restraints, and analysis of the global Artificial Intelligence in social media market trends. The study provides Porter’s five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global Artificial Intelligence in social media market share.

The artificial intelligence (AI) in social media market is segmented into Technology, Application, Enterprise Size and Industry Vertical.

Segment review

The global Artificial Intelligence in social media market trends is segmented into organization size, technology, application, industry vertical, and region. Depending on the organization size, the market is divided into large enterprises and small and medium-sized enterprises (SMEs). Based on technology, it is categorized into machine learning and deep learning, and natural language processing. By application, it is divided into sales and marketing, customer experience management, predictive risk assessment, and image recognition. Based on industry vertical, it is bifurcated into BFSI, IT & telecom, retail and e-commerce, media & advertisement, education, and others. Region-wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Depending on the enterprise size, the large enterprises segment dominated the Artifical Intelligence in social media market share in 2021, and is expected to continue this trend during the forecast period, as it has a wide availability of resources and expertise to develop and implement advanced AI solutions. Also, large businesses are investing heavily in AI to enhance their social media presence, improve customer engagement, and gain a competitive edge in the market. However, the small and medium-sized enterprises(SME) segment is expected to witness significant growth in the upcoming years, owing to rising advancements in AI technology and increased affordability have made it possible for SMEs to leverage AI-powered tools for social media management, such as chatbots, sentiment analysis, and personalized content generation.

Region-wise, the Artificial Intelligence in social media market is dominated by North America and is expected to retain its position during the forecast period, owing to the increasing use of social media platforms in North America, along with the high level of internet penetration, has fueled the demand for AI-powered social media tools are some of the driving factors in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to the robust growth of e-commerce in the region has boosted the demand for AI-powered social media tools. Also, organizations in the Asia-Pacific region are undertaking efforts to enhance their online presence and improve customer engagement. Thus, these factors are expected to witness considerable growth during the forecast period.

The global Artificial Intelligence in social media market is dominated by key players such as Adobe, Amazon Web Services, Inc., Baidu, Inc., Google LLC, Hootsuite Inc., IBM Corporation, Meta, Microsoft, Salesforce, Inc., and Snap Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.

Digital Capabilities

Artificial Intelligence in social media market growth has significantly enhanced the digital capabilities of social media platforms. Some of the ways AI has impacted social media are:

• Content Creation and Curation: AI can generate text, images, and videos for social media content, and can also curate existing content. For example, AI-powered tools like Canva and Adobe Spark allow users to create custom graphics and videos for social media platforms.
• Personalization: AI algorithms can analyze user data and generate personalized content recommendations and advertising. Social media platforms like Facebook and Instagram use AI to tailor their feeds to user preferences and interests.
• Sentiment Analysis: AI can analyze social media data to understand and categorize user sentiments about specific topics or brands. This helps marketers and businesses gain insights into consumer behavior and preferences.
• Chatbots: AI-powered chatbots can assist social media users with customer support inquiries, provide information, and engage users in conversation.
• Automated Moderation: AI can detect and remove inappropriate or offensive content on social media platforms. This includes hate speech, fake news, and other types of harmful content.

Overall, AI has enabled social media platforms to provide more personalized and engaging experiences for users, while also helping businesses better understand and target their audiences.

End-User Adoption

The adoption of AI in social media solutions has been steadily increasing over the years. This growth can be attributed to several factors, including improved user experience, as it provides personalized content, recommendations, and interactions that enhance the overall user experience. This has led to increased user satisfaction and engagement with social media platforms. In addition, AI-powered chatbots and automated moderation tools help businesses save costs on customer support and content moderation, making it an attractive option for businesses of all sizes.

AI algorithms also helps to analyze large amounts of social media data and provide valuable insights into user behavior, preferences, and sentiments. This helps businesses make data-driven decisions and improve their social media strategies. Further, as more people become familiar with AI technology, they are more likely to adopt it in their daily lives, including social media. Educational resources and awareness campaigns have helped to promote the benefits of AI and reduce fears and misunderstandings about the technology. Overall, the growing adoption of AI in social media solutions is expected to continue as businesses and users recognize the benefits of AI-powered experiences and tools.

Government Initiatives

Governments across the globe have recognized the importance of AI in social media solutions and have taken initiatives to promote its adoption. Governments are investing in research and development of AI technologies to promote their adoption of social media solutions. For example, the European Union has launched the AI4EU project to accelerate the development of AI technologies in Europe. In addition, governments are partnering with private companies and organizations to develop and implement AI solutions in social media. For example, the US government has partnered with tech companies like Google, Facebook, and Amazon to develop AI technologies.

Moreover, surge in developing regulatory frameworks to ensure the ethical and responsible use of AI in social media solutions. For example, the European Union has proposed a regulatory framework for AI to ensure its safe and ethical use. Additionally, providing training and education to the public and businesses on the benefits and potential of AI in social media solutions. For example, the UK government has launched the AI Skills Programme to provide training and education on AI technologies. Overall, government initiatives to promote the adoption of AI in social media solutions are critical in advancing the technology and ensuring its safe and ethical use.

Top impacting factors

Rise in integration of AI in social media application for effective advertising

Increase in utilization of Artificial Intelligence (AI) tools and software in social media platforms has revolutionized the advertising industry, as large volumes of consumer data can now be analyzed by AI systems. This helps advertisers to generate highly targeted and personalized advertisement campaigns. Moreover, AI can optimize advertisement delivery, placement, and pricing, leading to increasing the possibilities of a successful campaign. Besides, chatbots and virtual assistants powered by AI can help businesses improve user engagement, deliver better customer service, and gather useful data for marketing. Thus, such factors further fuel the growth of AI in social media for advertising industries.

In addition, rise in number of social media users is paving the interest of technology players to deploy AI services, which is expected to drive the growth of the AI in social media market. For instance, according to the article published by Smart Insights, in January 2023, social media is used by 59% of people throughout the world. Furthermore, many organizations such as consumer brands, retailers, automotive, and others are using a range of social media applications for promoting their products and brands. This will help businesses to promote their portfolio and reach a broad target audience. For instance, according to the article published by AnalyticsSteps, in September 2022, Facebook continues to collect information as users browse, communicate, like, and click, which it then bundles for advertising. Facebook employs AI algorithms in the background to organize the disorganized data it collects about individual tastes, aspirations, and social connections. It often develops its business by learning more about its users and making this data accessible to marketers. Such an initiative is projected to propel the growth of the AI in social media market.

Surge in popularity of Artificial Intelligence in social media industry to provide real-time information on target audiences

Rise in availability of real-time information such as daily news and live updates in digital format is resulting in the enormous usage of social media, as in the current fast-paced world, people desire real-time information regarding the latest occurrences. Whereas, real-time data, such as live updates on social media, news websites, and broadcast news, provides up-to-date information on breaking news, natural calamities, political events, and more. Thus, such key factors are contributing to the growing popularity of AI in social media, which provides real-time information to the target audience.

Moreover, AI tools such as Real-Time Operating Systems (RTOS) are a type of operating system that is designed to respond to events in real time. In the context of AI in social media, an RTOS can be used to ensure that AI algorithms and systems can operate in real-time and respond quickly to changes in data and user behavior. It also offers a large degree of efficiency and accuracy, enabling real-time responses, multitasking opportunities, enhanced portability and improve control & overall lower costs. These aforementioned factors are likely to encourage the adoption of AI in social media platforms, which in turn, drive the market growth.

The application and utilization of AI is adopted in major corporations, including Amazon, Twitter, and Instagram. For instance, Twitter employs extensive machine learning and AI for a variety of tasks, including sentiment analysis, bot analysis, and for identification of fraudulent accounts, and picture categorization. Apart from this, Facebook uses machine learning and deep learning algorithms to identify facial expressions and tag contacts. Therefore, the increase in utilization of AI techniques and algorithms in providing real-time data, further propels the growth of the Artificial Intelligence in social media industry.

KEY BENEFITS FOR STAKEHOLDERS        

• The study provides an in-depth analysis of the global Artificial Intelligence in social media market forecast along with current & future trends to explain the imminent investment pockets.
• Information about key drivers, restraints, & opportunities and their impact analysis on global Artificial Intelligence in social media market analysis is provided in the report.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
• The quantitative analysis of the market from 2022 to 2031 is provided to determine the market potential.

 Artificial Intelligence (AI) in Social Media Market Report Highlights