AI in IT and Telecom Market is expected to reach US$ 1075.95 Million by 2034

Global AI in IT and Telecom Market Forecast to 2034: Key Insights

According to our latest study on "Global AI in IT and Telecom Market – Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Deployment, Organization Size, and Geography," the AI in IT and telecom market size was valued at US$ 70.40 million in 2025 and is expected to reach US$ 1075.95 million by 2034. The AI in IT and telecom market is estimated to register a CAGR of 36.0% during 2026–2034. Edge AI and autonomous network management are expected to emerge as a significant AI in IT and telecom market trend, driving enhanced efficiency, real-time decision-making, and intelligent automation across IT and telecom sectors.

The exponential growth of connected devices, IoT, 5G, and high-speed data networks is increasing the need to process large volumes of data in real time, making edge computing increasingly essential. Edge AI processes data closer to the source, reducing latency, improving network efficiency, and enabling faster decision-making across IT operations and telecom services.

AI in IT and Telecom Market

Autonomous network management is expected to redefine how networks are monitored, optimized, and maintained. AI-driven systems can automatically detect anomalies, predict equipment failures, optimize traffic flow, and implement real-time load balancing without human intervention, thereby improving service reliability and reducing operational costs.

Cloud and networking companies are investing in AI-enabled platforms that integrate edge computing, machine learning models, and predictive analytics to automate network monitoring and IT service management. These platforms also support cybersecurity by identifying potential threats at the edge and initiating rapid protective measures.

Furthermore, modular and scalable AI solutions are allowing companies to integrate edge AI into existing telecom and IT infrastructure without overhauling legacy systems. As demand for low-latency applications, cloud gaming, autonomous devices, and smart cities increases, edge AI and autonomous network management will emerge as a critical driver of market growth.

IndiaAI Mission Drives Global AI in IT and Telecom Market Growth

The IndiaAI Mission—guided by the vision of “Making AI in India and Making AI Work for India,”—represents a transformative step toward positioning India as a global leader in artificial intelligence. Approved by the Cabinet in March 2024, the mission is backed by a significant budget of ~US$ 1,250 million allocated over five years. Its primary objective is to develop a robust AI ecosystem by enhancing research capabilities, fostering innovation, and strengthening computing infrastructure.

A core focus of the mission has been the expansion of high-performance computing resources. Initially targeting 10,000 GPUs, India has already achieved 38,000 GPUs, providing affordable and widespread access to world-class AI infrastructure. This expansion enables research institutions, startups, and enterprises to develop advanced AI models, perform large-scale data analytics, and deploy predictive and autonomous solutions across multiple sectors.

For the AI in IT and telecom market, the IndiaAI Mission acts as a key driver by accelerating AI adoption in network management, predictive maintenance, cybersecurity, cloud computing, and intelligent automation. Access to powerful computing resources allows telecom operators, IT service providers, and technology startups to experiment with AI-driven solutions without high upfront costs.

Moreover, the mission promotes collaboration between government, academia, and industry, fostering a knowledge-sharing ecosystem and nurturing AI talent. Thus, the initiative strengthens India’s AI capabilities, enhances competitiveness, and accelerates AI adoption across IT and telecom sectors, driving long-term AI in IT and telecom market growth.

Global AI in IT and Telecom Market: Segmental Overview

The global AI in IT and telecom market report is segmented on the basis of component, deployment, and organization size. Based on component, the market is divided into software, hardware, and services. Based on deployment, the market is divided into cloud-based and on-premise. In terms of organization size, the market is categorized into large enterprises and SMEs. The market is poised for strong growth driven by expanding industries, technological advancements, supportive government initiatives, and rising AI adoption in the IT and telecom sectors.

Based on component, the software segment held the largest AI in IT and telecom market share in 2025, driven by the increasing deployment of AI-enabled platforms across telecom operators, IT service providers, cloud computing platforms, and enterprise IT systems. AI software solutions are widely adopted for network optimization, predictive maintenance, cybersecurity, traffic management, and intelligent customer support.

The rising demand for cloud-based analytics, machine learning, natural language processing, and real-time data processing tools has further strengthened software adoption. These solutions allow telecom operators and IT enterprises to improve operational efficiency, automate workflows, and enhance service quality while enabling advanced analytics and predictive insights. As a result, the software segment continues to dominate the AI in IT and telecom market share. Hardware and services also drive market growth, with hardware enabling high-performance AI processing and services supporting integration, deployment, and ongoing optimization.

Global AI in IT and Telecom Market Analysis: Competitive Landscape and Key Developments

The global AI in IT and telecom market report highlights factors driving market growth and the key developments of prominent players. Accenture Plc, Advanced Micro Devices Inc, Google LLC, International Business Machines Corp, Intel Corp, Microsoft Corp, NVIDIA Corp, Amazon Web Services Inc, SAP SE, and SAS Institute Inc are among the prominent players profiled in the report. Market players focus on new product launches, expansion, diversification, and acquisition strategies to capitalize on prevailing business opportunities.

• Kyndryl establishes SAP Center of Excellence to accelerate agentic AI‑driven transformation for customers: In January 2026, Kyndryl (NYSE: KD)—a leading provider of mission-critical enterprise technology services—unveiled the SAP Transformations Center of Excellence (CoE). In this dedicated hub, customers can co-create with Kyndryl designers and engineers to unlock the full potential of AI to fuel their SAP transformations.
• SAS debuts new, custom AI models to bust business bottlenecks: In June 2025, SAS debuted new custom AI models to address business bottlenecks. Each model targeted specific labor- and time-intensive processes that hindered operations. SAS’s packaged models were offered either ready to deploy or designed to accelerate training on customer data, and all were able to integrate easily with existing systems across organizations of all sizes.

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