Artificial Intelligence Market: Current Analysis and Forecast (2025-2033)

Artificial Intelligence Market Size & Forecast

The Artificial Intelligence market was valued at approximately USD 246.9 billion in 2024 and is expected to grow at a substantial CAGR of around 32.5% during the forecast period (2025-2033), owing to the growing demand for automation.

Artificial Intelligence Market Analysis

The global Artificial Intelligence market is expected to witness robust growth mainly due to the rising funding levels and a wide variety of applications. Also, the COVID-19 pandemic has encouraged new applications and technological advancements within the sector. It has fostered the adoption of AI in sectors such as healthcare. AI-based tools and solutions are being deployed at scale to respond to the crisis. Technology giants such as Microsoft, Google, Apple, Amazon, and Facebook are taking initiatives related to remote communications between patients and clinicians, contact tracing, and drug development. The COVID–19 outbreak is expected to stimulate the market growth of next-generation tech domains, including artificial intelligence, owing to the mandated WFH (work-from-home) policy due to this pandemic. For instance, LogMeIn, Inc., a U.S.-based company that provides SaaS (Software-as-a-Service) and cloud-based consumer engagement and remote connection and collaboration services, has experienced a significant increase in new sign-ups across its product portfolios amid the pandemic.

Artificial Intelligence Market Trends

This section discusses the key market trends influencing the various segments of the Artificial Intelligence Market as identified by our research experts.

Surge in Generative AI Applications

One of the greatest global AI trends that could be seen currently is the rapidly growing usage of generative AI, including large language models, and AI-driven content creation. These technologies are transforming industries in the sense that they are automating customer support, writing articles, and even computer programming. The application of generative AI is becoming more widespread and making organizations more productive to improve the quality of services provided. It has been rewriting the way people work as well as responding to the need for innovation across the spectrum.

Artificial Intelligence Industry Segmentation

This section provides an analysis of the key trends in each segment of the global Artificial Intelligence report, along with forecasts at the global, regional, and country levels for 2025-2033.

The Deep Learning Market Holds the Largest Share of the Artificial Intelligence Market.

Based on technology, AI is segmented into deep learning, machine learning, natural language processing (NLP), speech recognition, and others. The deep learning segment grabbed the major market share in the global AI market and dominated the market in 2024.  However, the considerable CAGR during the forthcoming years, as NLP gives computers the ability to understand texts and spoken words, NLP is very significant for healthcare as it panders to a ginormous market of medical transcriptions.

The Software Segment is Expected to Witness a Higher CAGR than the Artificial Intelligence Market.

Based on component, the AI market is segmented into software, hardware, and service. The software segment grabbed the major market share in 2024. The software segment is a key growth driver of the AI market, offering the core tools and platforms needed to build and deploy intelligent applications. Cloud-based AI software enables scalable, flexible solutions across industries, helping businesses automate tasks, analyze data, and enhance decision-making. It supports functions like machine learning, natural language processing, and predictive analytics. As demand for intelligent automation grows, software continues to accelerate AI adoption across both large enterprises and startups.

North America has a significant share of the market in 2024.

The market of AI in North America is rapidly developing due to the emerging technologies such as machine learning, robotics, and computer vision. Many areas have a high level of demand when it comes to the use of Artificial Intelligence, including Healthcare, retail, and finance. The region’s technological development comprises a well-established technological structure, technology clusters, and favourable government policies. Modern tools are being adopted to operate automations, draw insights from accumulated data, and support customers at various levels using methods involving artificial intelligence.

U.S. Dominates the North American Artificial Intelligence Market

The U.S. AI market is growing every year, provided the government promotes investment for R&D, and widely applied fields include health care, finance, manufacturing, and so on. The country is at the forefront of AI creation by benefiting from the proper development of IT infrastructure and universities. The exciting opportunities in the application of AI are still out there, but issues such as data privacy and regulation do hold back the progress of this technology.

Artificial Intelligence Industry Competitive Landscape  

The Artificial Intelligence market is competitive, with several global and international players. The key players are adopting different growth strategies to enhance their market presence, such as partnerships, agreements, collaborations, new product launches, geographical expansions, and mergers and acquisitions.

Top Artificial Intelligence Companies

Some of the major players operating in the market are Amazon Web Services, Inc.; Apple Inc.; Google LLC; IBM Corporation; Intel Corporation; Microsoft Corporation; Nvidia; Oracle Corporation; SAP SE; and Siemens.

Recent Developments in the Artificial Intelligence Market

• In March 2025, ServiceNow launched a suite of AI-powered products to enhance enterprise workflow automation. The offerings include AI Agent Studio, a no-code tool for custom AI agent creation; AI Agent Orchestrator, a control tower for seamless AI agent coordination; and thousands of pre-built AI agents to optimize operations and reduce mean-time-to-resolution.

• In March 2025, the Commonwealth Bank of Australia expanded its partnership and investment in Anthropic PBC to accelerate AI adoption. The collaboration aims to enhance customer experiences, support bank personnel, and provide Commonwealth Bank of Australia technologists with direct access to Anthropic PBC's AI expertise, advancing safe and responsible AI development.

• In March 2025, NTT DATA Group Corporation and CrowdStrike, Inc. announced an expanded partnership to enhance NTT DATA Group Corporation's managed cybersecurity services using the AI-native CrowdStrike, Inc.'s Falcon platform. This collaboration combines NTT DATA Group Corporation's world-class managed services with Falcon's advanced cybersecurity capabilities, enabling clients to strengthen threat detection, response, and prevention, ensuring robust protection against breaches.

Artificial Intelligence Market Report Coverage

Reasons to Buy the Artificial Intelligence Market Report:

• The study includes market sizing and forecasting analysis validated by authenticated key industry experts.

• The report presents a quick review of overall industry performance at a glance.

• The report covers an in-depth analysis of prominent industry peers with a primary focus on key business financials, product portfolios, expansion strategies, and recent developments.

• Detailed examination of drivers, restraints, key trends, and opportunities prevailing in the industry.

• The study comprehensively covers the market across different segments.

• Deep dive regional-level analysis of the industry.

Customization Options:

The global Artificial Intelligence market can be customized further as per the requirements or any other market segment. Besides this, UnivDatos understands that you may have your own business needs; hence, feel free to contact us to get a report that completely suits your requirements.