Artificial Intelligence (AI) in Social Media Market Expected to Reach $12 Billion by 2031—Allied Market Research

Artificial Intelligence (AI) in Social Media Market

Report Code : A05606

quote “The predictive risk assessment segment is expected to experience significant growth in the coming years, owing to AI-driven algorithms that are able to scan social media data to detect possible financial hazards including market volatility, fraud, and reputational issues.” quote

Shadaab Khan - Senerior Research Analyst
ICT and Media at Allied Market Research

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The global Artificial Intelligence in social media market size was valued at $0.99 billion in 2021, and is projected to reach $11.99 billion by 2031, growing at a CAGR of 28.7% from 2022 to 2031.     

AI in social media refers to the use of artificial intelligence technologies to enhance and automate various aspects of social media platforms, including content recommendations, image and video analysis, chatbots, sentiment analysis, influencer marketing. The goal is to improve user experience, enhance content moderation, and provide better insights into user behavior. Moreover, a lot of social networking sites also employ AI to detect the abusive language in messages and comment areas. For instance, Facebook utilizes an AI program called deep text to identify instances of abuse.

Rise in the integration of AI in social media market applications 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, the surge in data generated through social media platforms is fueling the growth of Artificial Intelligence in social media market forecast. 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.

Depending on the technology, machine learning & deep learning segment dominated the Artificial Intelligence in social media industry in 2021 and is expected to continue this trend during the forecast period, owing to the rise in trends of automation and digitalization in almost every part of the artificial intelligence in sindustry, including advertising, finance, and e-commerce. However, the natural language processing segment is expected to witness the highest growth in the upcoming years, owing to the ever-growing number of social media platforms where users post, blog, and comment on a variety of topics, which drives the segment growth worldwide.

Region-wise, the AI in social media market was dominated by North America in 2021 and is expected to retain its position during the forecast period, owing to the increasing usage of automation and digitally enabled solutions. Additionally, AI is permeating society and affecting some of the most crucial aspects of people's lives, such as health care, law, agriculture, and transportation.

However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to companies in the region are investing heavily in AI technology, driven by the growing demand for real-time content and personalized customer engagement, which is expected to fuel the market growth in this region.

The pandemic has often led to changes in consumer behavior in terms of social spendings, along with increased spending on social media among people to stay connected with friends, family, and colleagues. This has created new prosperous opportunities for AI-powered social media tools that help users to better engage with their followers and stay up to date with recent trends. Similarly, there has been increasing in the amount of harmful and inappropriate content being shared online, which has created a need for AI-powered moderation tools. This tool can enable quick detection and remove inappropriate content.

Moreover, the pandemic has had a significantly impacted on the advertising industry, with many companies cutting back on their ad spend. This has led to an increased focus on ROI and a greater reliance on AI-powered advertising tools to help maximize the effectiveness of ad campaigns. Overall, the COVID-19 pandemic has accelerated the adoption of Artificial Intelligence in the social media market share, as businesses and individuals look for ways to adapt to the new realities of remote work and social distancing. Furthermore, the pandemic has led to an increase in the spread of misinformation on social media, which can have serious consequences. Such factors have propelled the growth of Artificial Intellingence in social media industry during the pandemic.

Several companies and government authorities are leveraging advanced technologies, intending to improve user experience and efficient monitoring of social media content. For instance, according to the article published by AI Multiple, in January 2023, the use of artificial intelligence is growing increasingly, owing to 90% of leading companies and government sectors continuing to invest in AI technology. The article further stated the use of AI for a range of government applications, such as social welfare, healthcare, and domestic security. Thus, the aforementioned factors are projected to significantly pave numerous opportunities for artificial intelligence in social media market share.

Key Findings of the Study

  • By technology, the machine learning & deep learning segment accounted for the largest Artificial Intelligence in social media market analysis in 2021.
  • Region-wise, North America generated the highest revenue in 2021.
  • On the basis of organization size, the large enterprise segment generated the highest revenue in 2021.

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., Snap Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry. For instance, in January 2022, Meta launched AI Research SuperCluster (RSC), RSC will support the development of new augmented reality technologies, improved AI models that can learn from billions of samples, operate in hundreds of different languages, evaluate text, photos, and video simultaneously, and more by Meta's AI researchers. this strategy is expected to drive the artificial intelligence in social media industry.

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quote Artificial Intelligence (AI) in Social Media Market by Technology (Machine Learning and Deep Learning, Natural Language Processing (NLP)), by Application (Sales and Marketing, Customer Experience Management, Predictive Risk Assessment, Image recognition), by Enterprise Size (Large Enterprises, Small and Medium Enterprises (SMEs)), by Industry Vertical (BFSI, IT and Telecom, Retail and E-Commerce, Media and Advertisement, Education, Others): Global Opportunity Analysis and Industry Forecast, 2022-2031 quote

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