Increasing Demand For Automation Is Fueling The Growth Of The Market Due To Streamlined Government Processes: Strategic Insights Driving Agentic Artificial Intelligence (AI) Government Market Momentum in 2025

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Agentic Artificial Intelligence (AI) Government Market Size Growth Forecast: What to Expect by 2025?
The market for agentic artificial intelligence (AI) in government has seen rapid expansion in recent times. It is projected to rise from $1.62 billion in 2024 to a staggering $2.33 billion in 2025, boasting a compound annual growth rate (CAGR) of 44.4%. The previous growth can be related to the enhanced integration of artificial intelligence, surging application of AI in customizing patient care, heightened customer satisfaction, and a rising adoption of multi-agent systems.

How Will the Agentic Artificial Intelligence (AI) Government Market Size Evolve and Grow by 2029?
The market size for agentic artificial intelligence (AI) in government is predicted to experience remarkable growth in the near future. By 2029, it's projected to reach $10.08 billion, growing at a compound annual growth rate (CAGR) of 44.2%. This prospective growth during the forecast period is largely due to the rising demand for automation, an increased focus on digital transformation, a growing need for improved customer service, and burgeoning investments in AI research and development. Noteworthy trends for this period include AI governance platforms, automated compliance monitoring, autonomous decision-making systems, and strategic collaborations.

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What Drivers Are Propelling the Growth of Agentic Artificial Intelligence (AI) Government Market Forward?
The agentic artificial intelligence (AI) government market is set for expansion, driven by the mounting demand for automation. The term automation encompasses the utilization of advanced technology, intricate systems, and machinery to execute tasks that require little to no human interference. This surge in demand for automation is predominantly fueled by an urgent requirement for improved public service provision, paving the way for government bodies and organizations to simplify operations. Agentic AI paves the way for autonomous decision-making and procedural execution, empowering governments to automate intricate tasks like policy enforcement, resource distribution, and management of citizen services with minimal human interference. As an illustration, the International Federation of Robotics, an organization based in Germany, reported that China saw an installation of 290,258 robots in 2022, indicating a 5% surge from the record previously set in 2021. As such, the rising demand for automation is catalyst to the growth of the agentic AI government market.

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Which Emerging Trends Are Transforming the Agentic Artificial Intelligence (AI) Government Market in 2025?
Big players in the agentic AI government sector are currently investing efforts in creating advanced technologies like generative AI, aiming to boost decision-making efficiency, automate routine tasks, and elevate the quality of public services. This variant of artificial intelligence, generative AI, is capable of producing new content such as text, images, or video clips, based on information it learns from existing data. This has great utility for governmental operations, as it aids in automating document processing, enhancing the quality of citizen services, identifying fraudulent activity, formulating policies, and bolstering data-driven decision-making. For example, in July 2024, US AI firm C3. Ai, Inc. launched their C3 generative AI for government initiatives in collaboration with Google Cloud, Google's cloud computing service suite. This generative AI platform is crafted to aid governments at the federal, state, and local levels in streamlining service provision and disseminating accurate public information. It boasts a user-friendly natural language interface, facilitating swift access to reliable answers with source citations, and even supports in excess of 130 languages, ensuring a wider reach.

What Are the Key Segments in the Agentic Artificial Intelligence (AI) Government Market?
The agentic artificial intelligence (ai) governmentmarket covered in this report is segmented -

1) By Product Type: Ready-To-Deploy Agents, Build-Your-Own Agents
2) By Deployment Model: On-Premises, Cloud-Based
3) By Application Area: Citizen Services, Public Procurement, Healthcare Management, Urban Infrastructure, Other Applications

Subsegments:
1) By Ready-To-Deploy Agents: Virtual Assistants For Public Services, Automated Compliance Agents, Citizen Support Chatbots, Artificial Intelligence (AI) Monitoring And Surveillance Agents, Document Processing Agents
2) By Build-Your-Own Agents: No-Code Or Low-Code Agent Platforms, Application Programming Interface-Based Agent Frameworks, Open-Source Agent Toolkits, Customizable Natural Language Processing (NLP) Agents, Workflow Automation Builders

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Who Are the Key Players Shaping the Agentic Artificial Intelligence (AI) Government Market's Competitive Landscape?
Major companies operating in the agentic artificial intelligence (AI) government market are Amazon.com Inc., Microsoft Corporation, accenture* plc., NVIDIA Corporation, International Business Machines Corporation, Oracle corporation, SAP SE, BAE Systems plc., Capgemini SE, NTT DATA Group Corporation, Infosys Limited, Leidos Holdings Inc., DXC Technology Company, HCL Technologies Limited, Booz Allen Hamilton Holding Corporation, Zoho Corporation, OpenAI Inc., Mphasis Limited, UiPath Inc., Beam AI Inc

What Geographic Markets Are Powering Growth in the Agentic Artificial Intelligence (AI) Government Market?
North America was the largest region in the agentic artificial intelligence (AI) government market in 2024. The regions covered in the agentic artificial intelligence (AI) government market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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