Press release
Artificial Intelligence Market to Witness Strong Growth Through 2031 | Machine Learning, NLP & Computer Vision Transform Industries
Artificial Intelligence Market
Growth is driven by surging demand for personalization in e-commerce and retail (e.g., real-time recommendations boosting sales/loyalty), automation needs in manufacturing, logistics, and transportation to handle repetitive tasks and improve productivity, energy monitoring/management advancements, rapid digital transformation post-COVID, massive data generation fueling AI training, and supportive government initiatives/investments (especially in Asia-Pacific). Technologies such as generative AI, cloud-native platforms, edge computing, and multi-modal models are enabling scalable, accessible AI deployment with reduced barriers, faster ROI, and applications in customer service, cybersecurity, predictive maintenance, and more. As AI shifts from experimental to core business utility, it is emerging as a transformative force reshaping industries and creating competitive advantages globally.
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Artificial Intelligence Market is the global market for technologies simulating human intelligence in machines (reasoning, learning, perception), including hardware, software, and services across machine learning, natural language processing, computer vision, and others, applied in IT & telecom, healthcare, retail, BFSI, automotive, manufacturing, and more for automation, analytics, personalization, and efficiency.
Key Developments
✅ April 2025: In Global, Oracle launched OCI File Storage, a managed service for AI/ML and high-performance computing, automating deployment and scaling of Lustre servers.
✅ April 2025: In Global, Amazon Lex V2 added generative AI support with Bedrock Knowledge Base, Guardrails, Anthropic Claude 3 models, and QinConnect integration for Amazon Connect.
✅ March 2025: In Global, OpenAI integrated an advanced image generator into GPT-4o for text rendering, image refinement, and creation of logos, diagrams, and infographics.
✅ March 2025: In Global, Microsoft partnered with Kuwait to accelerate AI adoption under Vision 2035, including Azure Region, cybersecurity initiatives, AI literacy programs, and Microsoft 365 Copilot.
✅ March 2025: In Global, NVIDIA launched a customizable AI Data Platform for enterprise inference using Blackwell GPUs, BlueField DPUs, Spectrum-X networking, and Dynamo library.
✅ October 2021: In Global, H2O.ai and AT&T co-developed an Artificial Intelligence Feature Store for collaborating on machine learning features to speed AI deployments and increase ROI.
Mergers & Acquisitions
Limited major recent M&A noted; focus on strategic collaborations, co-developments (e.g., H2O.ai-AT&T), partnerships for AI integration, and ecosystem building among tech giants and enterprises.
Key Players
Google Inc. | Microsoft Corporation | Amazon Web Services, Inc. | IBM Corporation | Oracle Corporation | Nuance Communications, Inc. | Salesforce.com Inc. | Intel Corporation | Apple Inc. | AT&T Inc. | Others
Key Highlights
Google, Microsoft, Amazon Web Services, and IBM hold leading positions, driven by comprehensive AI platforms (e.g., Google Cloud AI, Azure AI, AWS Bedrock, Watson), massive investments in generative AI, cloud-native tools, and broad enterprise adoption for automation, analytics, and innovation.
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Market Drivers
Rising demand for personalization enabling better customer recommendations, real-time marketing, and increased sales/loyalty in e-commerce/retail.
Growing need for automation in manufacturing, logistics, transportation, and other sectors to reduce costs, handle repetitive tasks, and boost efficiency/productivity.
Continued focus on energy monitoring, management, and control of generation/distribution networks using AI.
Rapid advancements in AI technologies (e.g., generative models, cloud platforms) lowering barriers and accelerating adoption.
Government initiatives, investments, and supportive policies (e.g., in China, Japan) promoting AI research and implementation.
Industry Developments
Launch of generative AI features, multi-modal models, and enterprise platforms for inference, knowledge bases, and automation.
Strategic partnerships between tech providers and governments/regions for AI literacy, infrastructure, and adoption (e.g., Microsoft-Kuwait).
Advancements in scalable, high-performance computing/storage for AI/ML workloads.
Emphasis on ethical AI, cybersecurity integration, and multi-language/accuracy improvements in assistants.
Shift toward cloud-native, democratized AI tools enabling SMEs and faster time-to-value.
Regional Insights
Asia-Pacific - Largest and fastest-growing share: "Driven by large population, rapidly growing economy, increased AI adoption in healthcare, finance, retail; strong government initiatives/investments (e.g., in China and Japan for AI research); presence of major players like Baidu, Alibaba, Tencent; high digital transformation and data volumes fueling demand."
North America - Significant share: "Supported by advanced R&D, high investments from tech giants (Google, Microsoft, Amazon), strong enterprise adoption, and innovation in generative/cloud AI."
Europe - Strong share: "Fueled by regulatory frameworks, focus on ethical/sustainable AI, and applications in manufacturing, automotive, and healthcare."
Latin America, Middle East & Africa - Emerging shares: "Growing with improving digital infrastructure, government programs, and gradual enterprise adoption in key sectors."
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Key Segments
By Component
Software holds a major share, driven by platforms, tools, and algorithms. Hardware (e.g., AI chips) and Services (consulting, integration) support deployment and scaling.
By Technology
Machine Learning holds the largest share for predictive analytics and automation. Natural Language Processing, Computer Vision, and Others grow rapidly with generative and multi-modal advancements.
By End-User
IT & Telecom holds dominant share due to demand in customer service, network management, cybersecurity. Healthcare, Retail, BFSI, Automotive, Manufacturing, Advertising & Media, and Others follow with sector-specific applications.
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