The artificial intelligence market size is driven by big data, cloud applications, and services

Artificial Intelligence is inarguably the most popular technology right now. The artificial intelligence market size is expected to grow from US$86.9 billion in 2022 to US$407 billion by 2027, at a Compound Annual Growth Rate (CAGR) of 36.2% during the forecast period. The three main growth drivers are an increase in big data, cloud application and service usage, and demand for intelligent virtual assistants.

The year 2050 is marked by experts as the year when AI will be able to perform every kind of human activity. Already intelligent machines are contributing significantly to the daily operations of big and critical industries. For instance, the information security world is forever short on skilled human capital which eventually exposes systems to criminality. But with the intrusion of AI, the scene has drastically changed with the first-generation AI solutions providing value creation from massive data and threat detection features.

The rate of progress and development in AI has been intermittent and unpredictable. There have been significant advances in technology since its inception. It is an over-arching concept that entails multiple disciplines and is transforming every walk of life. Organizations are already implementing AI for numerous business applications. If deployed effectively, the technology provides real-time data gathering, forecasting, and trend analysis for delivering greater insight.

The growth of the AI market can be attributed to the rapid surge in cybersecurity incidents and ransomware attacks across the globe during the COVID-19 pandemic, the increasing need for new use cases for businesses such as interactive games, decision support, and real-time retail recommendation engines, is expected to drive the artificial intelligence market size growth. North America is expected to account largest market share during the forecast period. The region is one of the leaders in technological advancements and is home to major AI providers.