Tuesday, November 29, 2022

AI Software Market Projected to Reach $62B in 2022

STAMFORD, Conn. — The global artificial intelligence (AI) software market is predicted to total $62.5 billion in 2022, a 21.3% year-over-year increase.

The AI software market encompasses applications with AI embedded in them, such as computer vision software, as well as software that is used to build AI systems, according to the market research firm Gartner last month.

The top five use case categories for AI software spending in 2022 will be knowledge management, virtual assistants, autonomous vehicles, digital workplace, and crowdsourced data, Gartner said.

The forecast is based on use cases, measuring the amount of potential business value, timing of business value, and risk to project how use cases will grow.

See more: The Artificial Intelligence Market

Global AI Software Market Forecast by Use Case, 2021-2022

(Millions of U.S. dollars)

Segment 2021 Revenue 2021 Growth (%) 2022 Revenue 2022 Growth (%)
Knowledge Management 5,466 17.6 7,189 31.5
Virtual Assistants 6,210 12.0 7,123 14.7
Autonomous Vehicles 5,703 13.7 6,849 20.1
Digital Workplace 3,593 13.7 4,309 20.0
Crowdsourced Data 3,483 13.6 4,171 19.8
Others 27,049 14.1 32,827 21.4
Total 51,503 14.1 62,468 21.3

(Source: Gartner)

See more: Artificial Intelligence: Current and Future Trends

“The AI software market is picking up speed, but its long-term trajectory will depend on enterprises advancing their AI maturity,” said Alys Woodward, senior research director, Gartner.

“Successful AI business outcomes will depend on the careful selection of use cases. Use cases that deliver significant business value, yet can be scaled to reduce risk, are critical to demonstrate the impact of AI investment to business stakeholders.”

Immature AI 

Demand for AI technologies is closely tied to organizational AI maturity levels. 

Enterprises have a strong interest in AI, with 48% of CIOs saying that they have already deployed or plan to deploy AI and machine learning (ML) technologies within the next 12 months, according to the 2022 Gartner “CIO and Technology Executive Survey.”

Yet, organizations struggle to make AI technology part of their standard operations, Gartner said. 

It will take until 2025 for half of organizations worldwide to reach the “stabilization stage” of AI maturity or beyond.

The report by Gartner is available to clients: “Forecast Analysis: Artificial Intelligence Software, Worldwide.”

See more: Top Performing Artificial Intelligence Companies

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