Enterprise Artificial Intelligence Market: Overview
The Enterprise Artificial Intelligence market was worth USD 11,194.5 million in 2021 and is expected to increase at a 34.1 percent CAGR during the forecast period. AI enables computer systems to create and accomplish activities normally requiring human intervention and assistance, such as speech recognition, decision-making, visual perception, and language translation. Enterprise AI is the capacity to embed AI technique that integrates human capacities for learning, observation, and interaction at a level of complexity that will assist organizations in forecasting business outcomes. The popularity of artificial intelligence (AI) applications in businesses are growing. Businesses and enterprises rapidly see the value of incorporating AI into business processes. AI has proven advantageous to businesses in various ways, including changing how businesses interact, innovate, and improve their processes. Enterprise digitalization is the Market's most prominent trend. The fourth industrial revolution (Industry 4.0) is defined by a convergence of physical and advanced digital technologies such as the IoT, intelligent robots, ubiquitous, artificial intelligence, mobile supercomputing, information management, and analytics that have a significant impact across multiple industries. With the broad acceptance of Industry 4.0, the surge in industrial automation is driving the deployment of robots and automated technologies to improve the efficiency of manufacturing operations.
According to Bank of America, the industrial robot industry of robotics and AI is predicted to be worth approximately USD 24 billion by 2025. This tendency has increased enterprise adoption of robotic process automation (RPA), a key component of AI. During the pandemic, the enterprise artificial intelligence (AI) market grew because of the rising demand for innovative and creative AI-based enterprise products across numerous sectors, including healthcare, retail, and education. In July 2020, UC San Diego Health, an academic medical center within the University of California, used Amazon Elastic Compute Cloud to create a machine learning-based imaging system that can detect symptoms of Covid-19 (Amazon EC2). Certain constraints and hurdles will impede the overall growth of the Enterprise AI Market. Concerns about data piracy and a slow digitization rate limiting the adoption of enterprise AI solutions in emerging markets are also predicted to impact market growth.
Enterprise Artificial Intelligence Market: COVID-19 Impact
The demand for AI in the healthcare surged significantly in response to the pandemic crisis. The technology provides several tools and models to improve traditional analytics and decision-making capabilities. This increases the precision and efficiency of diagnosis, treatment, and forecasting. According to the January 2022 study report, Regenstrief Institute and Indiana University experts discovered that Machine Learning (ML) models could aid public health decision-making during the pandemic. Similarly, according to research published in December 2021 by the University of Waterloo and DarwinAl, artificial intelligence could help clinicians allocate resources by identifying patients who require Intensive Care Unit (ICU) treatment during the COVID-19 pandemic.
Furthermore, the technology and its insights can be extremely beneficial in drug discovery. For example, the Tata Consultancy Services Innovation lab and Facebook Al are using Al capabilities to assess virus propagation and discover new compounds to target against the COVID-19 strain. Furthermore, during the epidemic, businesses such as retail and e-commerce, manufacturing, transportation, and logistics, among others, invested heavily in technology to balance the demand-supply ratio. As a result, the Market experienced great growth during the pandemic, which is expected to continue post-pandemic.
Enterprise Artificial Intelligence Market: Drivers
Increasing Investment In Artificial Intelligence Technology to Drive Market Growth
The ability of AI technology to quickly assess collected data and forecast decisions using critical algorithms aids in productivity development; for example, Netflix proposes movies based on users' previous viewing experiences. AI has transformed business management in the current business scenario by integrating workflow management tools, brand purchase advertising, trend predictions, and other technologies. These are the primary dynamics of increased investment in AI technologies. Furthermore, many small startups and tech organizations have invested in adopting open-source AI platforms to achieve greater efficiencies in their value chains. Furthermore, the increased availability of low-cost quality AI technologies is likely to help the growth of the enterprise artificial intelligence market. The growing need for artificial intelligence technologies in developing countries presents a substantial potential for enterprise AI service providers. According to the latest study by MIT Technology in collaboration with the software company Genesys in the United States, artificial intelligence is providing growth opportunities in the Latin American region by assisting in the resolution of numerous critical issues such as food security, smart cities, unemployment, and natural resources.
Increased Demand For Large-Scale Data Analysis And Interpretation Driving Market Growth
AI is used in various industries, including media and advertising, finance, retail, healthcare, automotive and transportation, agriculture, law, educational institutions, and oil and gas. This has fueled the global AI business, thanks to advancements such as self-driving cars, space exploration, accurate weather predictions, and others. Furthermore, AI is projected to impact medical breakthroughs because of its potential to evaluate massive volumes of genomic data and enable more accurate treatment and prevention of medical diseases. Furthermore, as the enterprise AI industry becomes more competitive, many organizations see the importance of analyzing and understanding vast amounts of data.
Enterprise Artificial Intelligence Market: Restraints
Limitations in Privacy Protection to Restriction Market Growth
The Market is going to struggle with data privacy and diverse algorithms. The technology combines machine learning and deep learning capabilities to provide users with appropriate results. These tools, which include search algorithms, recommendation engines, and ad tech networks, have the potential to abuse sensitive user data. Furthermore, artificial intelligence algorithms generate new information based on historical data without the user's permission. According to the European Parliament's March 2021 study, the global data volume is expected to exceed 175 zettabytes in 2025, up from 33 zettabytes in 2018. As a result, Europe implemented the General Data Protection Regulation to control the misuse of personal data. This is expected to reduce demand.
Enterprise Artificial Intelligence Market: Segment Overview
Natural Language Processing to Dominate Market due to an Increase in Personal Gadgets And Smartphones
In 2021, the natural language processing segment generated the most income. The expanding use of personal gadgets and smartphones and the rising prevalence of internet consumption have dramatically increased the need for human-to-machine level interaction in organizations. The use of NLP will likely increase as the demand for Machine-to-Machine (M2M) translation grows. Many businesses are implementing AI technologies to reap the benefits. Even expansion can be ascribed to an increase in enterprise adoption of virtual support services and increased investments in AI technology by various industrial verticals. Furthermore, the capacity to generate and extract intent from a document in a readable, grammatically correct and stylistically natural manner is boosting enterprise demand for NLP technology. The increased need for voice-based interfaces, chatbots, and virtual assistants can be ascribed to the expansion.
Increased Investment In AI Solutions, IT & Telecom Category Dominated Market
IT & Telecom segment has the largest share. The surge is linked to increased investment in AI solutions by various IT and telecom firms. IT & Telecom is becoming more agile, flexible, and personalized as a result of trends such as digital manufacturing, Industry 4.0, industrial robots, Industrial Internet of Things (IIOT), self-driving vehicles, drones, augmented/virtual reality, 3D printing/additive manufacturing, edge computing, and so on.
For example, on January 28, 2019, Capgemini launched 'Perform AI,' in which it collaborated closely with all of its technology partners to develop AI solutions that address specific industry needs, such as a Manufacturing intelligence platform that uses computer vision to prevent quality defects and machine learning to detect failures.
Manufacturers expect to achieve cheaper maintenance costs while increasing uptime through predictive maintenance. Advanced pattern recognition and machine learning techniques are being developed critical for enhancing customer service levels, and technology improvements can assist in mitigating these losses. Automation combined with artificial intelligence helps humans execute repetitive activities more accurately. For example, consider the AI-assisted Lights Out plant, which operates with little or no human intervention, lower lighting, and higher environmental control. The Japanese Fanuc business employs robotic workers that work without weariness and with errors reduced to a greater level.
Enterprise Artificial Intelligence Market: Regional Landscape
Europe to Dominate Market due to Industrial Revolution and Industrial Automation
It is anticipated that the Europe market will account for the largest revenue share. The European region is experiencing rising demand due to mainstream developments such as the industrial revolution and automation. Regional companies have been recognized for investing in various automation technologies such as robots, artificial intelligence, and machine learning.
The UK government has invested EUR 50 million in five new "centers of excellence for digital pathology and imaging," which will employ AI to power medical discoveries. Initiatives like these are expected to have a favorable impact on the Enterprise AI industry.
This increase in cognitive computing is predicted to enable regional firms to replicate human characteristics such as sensory perception, deduction, thinking, learning, and decision-making. The capacity to harness significant quantities of processing power is set to move this paradigm beyond human replication in terms of speed and ability to detect patterns and present potential answers that individuals may not be qualified to perceive, boosting AI solutions' use.
Google has made considerable investments in Germany, including a large unknown shareholding in the DFKI Research Centre. Deepmind, a UK-based AI firm, was recently acquired by the corporation, making it its largest European purchase to date. With such processes, Europe's commercial potential for AI may emerge, giving it an advantage in the competition for cognitive skills.
Global Enterprise Artificial Intelligence Market: Competitive Landscape
In February 2022, Seneca, a renowned provider of telco solutions and consulting services, was acquired by IBM Corporation. IBM intends to boost the growth of its cloud business by acquiring Seneca. Furthermore, Sentaca's consulting services are expected to assist IBM clients in resolving revenue, infrastructure, expense, and scalability difficulties through technology and strategy. Moreover, in May 2022, IBM and MBZUAI are working to improve AI research by establishing a new center of excellence. This center will provide our academics and students with useful resources and a collaborative environment to expand their AI work. IBM has a history of technological innovation, and they are excited to work together on their most recent projects to develop AI technology and commercialization for mutual benefit.
Some Enterprise Artificial Intelligence Market players include Alphabet Inc., IBM, Apple Inc., Amazon Web Services, MicroNVIDIA Corporation, Strategy Incorporated, IPsoft Inc., Verint Systems Inc., SAP SE, and Wipro Limited.
Regional Classification of the Global Enterprise Artificial Intelligence Market is Listed Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Enterprise Artificial Intelligence Market
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