The artificial intelligence market size was valued at US$ 193.25 billion in 2024 and is expected to reach US$ 1,706.71 billion by 2031; it is estimated to register a CAGR of 37.8% during 2025–2031. The burgeoning popularity of agentic Al is likely to bring new market trends in the future.
The rising adoption across industries, government initiatives and investment to support the adoption of AI technology, and the burgeoning demand for multimodal AI are among the significant factors driving the global artificial intelligence market expansion. Further, increasing investments in industrial automation solutions and the growing popularity of agentic Al is likely to propel the demand for artificial intelligence in the future. Technological advancements and integration of advanced technologies such as machine learning, natural language processing (NLP), and robotic process automation (RPA); demand for generative Al; and development of explainable AI (XAI) and AI-powered cybersecurity solutions that reduce operating costs are expected to create opportunities for the market during the forecast period. An upsurge in the need for customized AI-based solutions, manufacturers' focus on developing small language models and open source advancements, and an increase in research and development activities also benefit the global artificial intelligence market.
Artificial intelligence (AI) operates as a combination of technologies that allow computers to perform a wide range of advanced operations, such as reading, understanding, translating spoken and written language, analyzing data, and making suggestions. AI serves as the basis of current innovations in computing, creating value for individuals and enterprises. For example, optical character recognition (OCR) uses AI to extract text and data from photos and documents, transforming unstructured content into business-ready structured data and providing crucial insights. Industries use AI-based systems and software in a variety of applications, including speech recognition, image recognition, translation, predictive modeling, data analytics, and cybersecurity. Significant benefits offered by AI include 24 × 7 availability, repetitive task automation, fewer human errors, more and faster data insights, reduced physical risks, and enhanced decision-making.
In January 2025, US President Donald Trump announced a private sector investment of up to US$ 500 billion to accelerate the development of AI infrastructure in the nation. The initiative is designed to strengthen America's competitive position in this vital sector. At the core of the announcement is a new joint venture called Stargate, formed by OpenAI, SoftBank Group Corp. (9984.T), and Oracle Corporation (ORCL.N). Stargate will focus on building advanced data center infrastructure in the country and is projected to generate over 100,000 new jobs nationwide. Backed by a coalition of equity partners, Stargate has already secured a US$100 billion initial investment for immediate deployment. The remaining US$400 billion is expected to be invested over the next four years as part of a phased capital allocation strategy. The initiative was formally launched at the White House, where SoftBank CEO Masayoshi Son, OpenAI CEO Sam Altman, and Oracle Chairman Larry Ellison joined Trump to underscore their commitment to positioning the US as a global leader in AI.
Techs and consulting companies, including Accenture Plc, Contents SpA, Aleph Alpha GmbH, and Mistral AI, are investing in AI technology. In June 2023, Accenture Plc announced an investment of US$ 3 billion to accelerate the development of new AI-based solutions. The company is planning to use these solutions to help businesses from across 19 industries, such as manufacturing, retail, and healthcare. These investments are made to develop and implement AI technology in various processes to manage a high volume of data. Thus, initiatives and investments by governments and private organizations support the adoption of AI.
Generative AI enables firms to function efficiently and stay ahead of their competitors. Governments of various countries are organizing events to create awareness related to the benefits provided by generative AI. In April 2025, California Governor Gavin Newsom announced a new statewide initiative to integrate generative AI technologies across government functions. The initiative aims to leverage AI to optimize traffic management, enhance road safety, and improve public-facing services, such as customer support. In an official statement, Governor Newsom emphasized that the effort is focused on enhancing and not reducing government services, reinforcing the state's commitment to innovation-driven public sector improvement.
According to data released by Infosys Limited in December 2023, countries across the globe are investing in generative AI technology to streamline and automate operations, enhance product development, and optimize customer experiences. Between 2022 and 2023, France and Germany doubled their GenAI spending to approximately US$ 730 million and US$ 610 million, respectively. In both countries, ~50% of businesses have either deployed generative AI or have implemented and achieved business value from it. Roughly 40% of companies in the UK, Benelux, and Nordics invest in AI technology to improve their business operations. In December 2023, the UK surpassed Benelux to take third place, as its spending is likely to increase two-fold or more to reach approximately US$ 510 million. In 2023, companies in Nordic countries invested more than 2.5 times their present spending, totaling more than US$ 470 million in GenAI. Thus, the development of generative AI tools and models for managing business processes is expected to create future growth opportunities in the global artificial intelligence market.
Key segments that contributed to the derivation of the artificial intelligence market analysis are component, organization size, and industry vertical.
The regional trends and factors influencing the Artificial Intelligence Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Artificial Intelligence Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2024 | US$ 193.25 Billion |
| Market Size by 2031 | US$ 1,706.71 Billion |
| Global CAGR (2025 - 2031) | 37.8% |
| Historical Data | 2021-2023 |
| Forecast period | 2025-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Artificial Intelligence Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Artificial Intelligence Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The artificial intelligence market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. Key the developments in the artificial intelligence market are listed below:
(Source: IBM, Press Release, June 2025)
(Source: Accenture, Press Release, March 2025)
The "Artificial Intelligence Market Size and Forecast (2021–2031)" provides a detailed analysis of the market covering the areas mentioned below:
The artificial intelligence market was valued at US$ 193.25 billion in 2024 and is projected to reach US$ 1,706.71 billion by 2031; it is expected to grow at a CAGR of 37.8% during 2025–2031.
Rising Adoption in Various Industries; Government Initiatives and Investments Supporting AI Adoption, and Surging Demand for Multimodal Al are the driving factors impacting the artificial intelligence market.
Burgeoning Popularity of Agentic AI is the future trends of the artificial intelligence market.
The key players, holding majority shares, in artificial intelligence market includes Microsoft Corp, Accenture Plc, International Business Machines Corp, NVIDIA Corp and Google LLC.
The artificial intelligence market is expected to reach US$ 1,706.71 billion in the year 2031.
The North America held the largest market share in 2024, followed by Europe.