Enterprise Artificial Intelligence (AI) Market

Global Enterprise Artificial Intelligence (AI) Market Size (2024 to 2029)

The global enterprise artificial intelligence (AI) market is predicted to reach USD 28.42 billion in 2024 and USD 132.25 billion by 2029, growing at a CAGR of 36% during the forecast period.

Current Scenario of the Market

As of now enterprise artificial intelligence industry is sailing through the complications of sustainability, multi-cloud optimisation and AI, and at the same time is also focusing on the significance of retaining skilful employees in a competitive market. Moreover, industry players are also emphasizing lowering costs, improving data protection, and encouraging a strong, which is aiming for an enduring and healthy ecosystem in the coming years.

According to a 2024 survey, around 42 per cent of enterprise-scale companies or organizations having more than 1000 employees have actively employed AI in their business, fuelling the market growth rate. Also, an extra 40 per cent are presently searching or testing with AI but have not implemented their versions. On the other hand, 59 per cent of those market players studied already investigating or implementing AI and are reporting that they have expedited their investment in the technology. Additionally, the market is witnessing rapid growth in India due to progressive adoption and a thriving service sector.

MARKET DRIVERS

The growth of the enterprise artificial (AI) market is driven by progressive investment by prominent industry players despite barriers.

This is due to its ability to handle immense datasets and ensure effective data management. The main areas in data management to emphasize. Today, the analytics and AI market has been democratised by enterprise AI. In the past, application developers required data scientists for model modifications, however now, large language models (LLMs) can be employed directly to company frameworks, producing superior fidelity results customised to particular use cases.

Another factor propelling the market growth rate is the increasing adoption of digital technologies in all kinds of companies. Furthermore, the manufacturing sector has witnessed huge advancement as a consequence of new technologies involving digital manufacturing, industrial Internet of things (IIOT), self-driving cars, industrial robots, edge computing, augmented and virtual reality (AR/VR), and industrial robots. These solutions help in improving the customisation, flexibility, and nimbleness of manufacturing processes. Besides this, the growth of trustworthy cloud computing facilities, ecosystems, breakthroughs in powerful AI solutions for preventative or special upkeep, customer behavior study, and the recognition of fraud and risks are facilitating market growth a considerable push.

MARKET RESTRAINTS

The growth of the enterprise artificial intelligence (AI) market is slowed down by the lack of competence and skills in this domain along with ethical issues. As per research, about 33 per cent of companies consider the restricted AI skills and expertise as the top barriers hindering its deployment, followed by too many data complications accounting for 25 per cent and then by ethical concerns at 23 per cent. Moreover, extreme difficulty in incorporating and scaling AI projects (23 per cent), exorbitant prices (21 per cent) and the absence of tools or resources for the development of AI models are other sets of obstacles hampering the market expansion.

MARKET CHALLENGES

Generative AI present multiple challenges to entry from conventional or standard AI models, decreasing the market growth rate. A survey of IT professionals at participating companies not probing or deploying generative AI found that 57 per cent consider data privacy and 43 per cent said transparency is the biggest impediment to this. Also, the companies in the market are facing greater problems due to the lack of competence and skills for implementation. Around 35 per cent report that the absence of skills for deployment is a significant barrier. Besides this, the requirement for government and trustworthy AI is realized by IT professionals, yet hurdles are making its implementation tough for the surveyed organisations.

MARKET OPPORTUNITIES 

The enterprise artificial (AI) market is expected to grow further due to the generative AI and its other innovative applications escalating focus on increased automation, enhanced prediction, personalization at scale, and advanced image and speech recognition. AI algorithms will be more proficient at forecasting industry trends, consumer preferences and business threats. This will build more reliable AI predictions which will allow companies to make more proactive and informed decisions. In addition, various industries are aiming to achieve higher productivity and level of automation, so, upcoming enterprise AI will probably extend its limits, managing highly complicated jobs with the least human mediation. 

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Enterprise Artificial Intelligence (AI) Market Analysis By Technology

The Natural Language Processing (NLP) segment is projected to command the enterprise artificial intelligence market. The increase in company adoption of digital support services and greater investments in this technology by various sector verticals are both elements adding to the expansion of this segment’s market share. The demand for NLP technology among organizations is also has been influenced by the ability to deliver and pull out the intention from a document in a readable, grammatically precise, and stylistically organic way.

Global Enterprise Artificial Intelligence (AI) Market Analysis By Capabilities

The robotic process automation segment is expected to be the most demanding capability in the enterprise artificial (AI) market during the forecast period. Companies are progressively capitalizing on Robotic Process Automation (RPA) to automate monotonous and time-consuming jobs, freeing up their personnel or professionals to emphasize more tactical and value-added operations. Moreover, the segment’s market share is also surging because of its productivity and efficiency, quality and accuracy, cost saving, scalability, compliance, and customer satisfaction. Apart from these advantages, RPA can also be incorporated with other technologies, like machine learning, to build even highly state-of-the-art automation solutions.

Global Enterprise Artificial Intelligence (AI) Market Analysis By Use Cases

The service operation optimisation segment captured a notable portion of the enterprise artificial intelligence (AI) market. As per a survey, 24 per cent of organisations look at service operation optimisation as the leading usage scenario. AI is also empowering organisations to propel topline growth. Moreover, AI adoption is rising, especially in service operations optimization, contract-center optimization, and product improvements. It assists market players in enhancing their sales and promotion operations and development of products and services and augments higher revenue.

Global Enterprise Artificial Intelligence (AI) Market Analysis By Function

The marketers segment is at the forefront of adoption and gained more than 50 per cent market share of the enterprise artificial intelligence (AI) industry. This category is one of the factors driving the topline growth. The segment has significantly contributed to lead generation, assistance to the sales team and personalised recommendations which is fueling its market share. According to industry experts, the application of AI by top wealth advisors to customise investment plans or propositions for their clients is executed in under 45 minutes. This has aided the sales team gain more time and give an output of not less than 5 to 6 more calls every day on average. AI can assist the marketing team in individualising content and contact to intensify engagement based on customer’s preferences.

Global Enterprise Artificial Intelligence (AI) Market Analysis By Industry

The IT & telecom industry remained in the first position in the enterprise artificial (AI) market. Telecom AI usages in telecom exhibit tangible advantages, with 73 per cent of market players experiencing elevated revenue via AI-powered telecom services network efficiency improvement, 80 per cent noticing lower expenses in consumer service with AI-driven chatbots and digital assistants, and a significant 90per cent success rate in live fraud discovery and identification utilising AI.

REGIONAL ANALYSIS

North America enterprise artificial intelligence (AI) market and is expected to achieve higher CAGR throughout the estimation period. The United States is dominating the regional industry with an AI adoption rate of 45 per cent. The US continues to be a focal point for technology innovation and constitutes various global tech titans. However, its varied business ecosystem exhibits that AI adoption differs broadly over various industries. Still, the change in the market in the country is largely led by the Silicon Valley. Hence, the future of AI in the nation appears more promising than ever.

Asia Pacific is one of fastest fastest-growing enterprise artificial (AI) market worldwide. With India leading the regional industry, it is expected to attain further market share during the forecast period. According to a 2023 survey, India is spearheading among the top four countries, including Australia, the United States, and the United Kingdom, with an astonishing adoption rate of AI at 73 percent. Considering the nation's thriving IT sector and digital-savvy young professionals. India's expanding start-up environment influences this increase, ultimately benefiting the Asia Pacific’s market size.

Europe is also making major strides in the enterprise artificial intelligence (AI) market with the formation of the foremost AI act in the world. The United Kingdom holds the maximum market share of the regional industry. At 29 per cent, the UK may look to be a bit traditionalist in its enthusiasm for AI. However, it's crucial to observe that this country has been a deep technology study and innovation center. A slower adoption rate depicts careful integration. The nation is ensuring that its AI deployments are accurate, tactical, and efficient.

KEY MARKET PLAYERS

• Amazon Web Services, Inc.
• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• Intel Corporation
• Alphabet Inc.
• SAP SE
• ai, Inc.
• DataRobot, Inc.
• Hewlett Packard Enterprise Development LP
• Wipro Limited
• NVidia Corporation

RECENT HAPPENINGS IN THE MARKET

• In August 2024, Appian Press released the newest version of its Appian Platform, which is designed and made to revolutionise how companies organise and arrange enterprise information and automate procedures.

DETAILED SEGMENTATION OF THE GLOBAL ENTERPRISE ARTIFICIAL INTELLIGENCE (AI) MARKET INCLUDED IN THIS REPORT

This research report on the global enterprise artificial intelligence (AI) market has been segmented and sub-segmented based on the technology, capabilities, use cases, function, industry, and region. 

By Technology

• Natural Language Processing (NLP)
• Machine Learning
• Computer Vision
• Speech Recognition
• Others

By Capabilities

• Robotic process automation
• Computer vision
• NL text understanding
• Virtual agents

By Use Cases

• Service operations optimization
• Creation of AI-based products
• Customer segmentation
• Customer service analytics
• AI-based product enhancement

By Function

• Marketers
• Salespeople
• Service Professionals

By Industry

• Media & Advertising
• Retail
• BFSI
• IT & Telecom
• Healthcare
• Automotive & Transportation
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa