Artificial Intelligence Market is expected to reach US$ 1,706.71 Billion by 2031

Rising Adoption in Various Industries Fuel Artificial Intelligence Market Growth

According to our latest study, "Artificial Intelligence Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – By Component, Deployment, Organization Size, Industry Vertical, and Geography," the market 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 report includes growth prospects owing to the current artificial intelligence market trends and their foreseeable impact during the forecast period.

Artificial intelligence (AI) is used in industries such as healthcare, retail and e-commerce, and manufacturing to automate repetitive tasks, enhance accuracy, and accelerate job completion. As a result, it allows staff members to focus on more complex activities alongside increasing their efficiency and production outputs. The uses and benefits of AI in industries are mentioned below:

• Healthcare – AI is transforming the healthcare sector by improving diagnostics, personalizing treatment regimens, streamlining processes, and lowering costs. Healthcare organizations are using image-based AI models as diagnostic tools to speed up interpretation and facilitate disease identification. In September 2023, Paige AI, Inc. collaborated with Microsoft to develop the world's largest image-based AI models for digital pathology and oncology to fight cancer. The companies are developing a new AI model that is larger than any other image-based AI model existing today. Configured with billions of parameters, this model would assist in capturing the subtle complexities of cancer and serve as the foundation of next-generation clinical applications and computational biomarkers pushing the boundaries of oncology and pathology. In April 2025, FirstHx, a pioneer in AI-driven healthcare solutions, officially announced its entry into the US market, introducing a patient intake platform aimed at transforming the American healthcare experience. This strategic expansion builds on the platform's proven success in Canada and the Middle East, where it enhanced the efficiency and accuracy of patient data collection and management.
• Retail and e-commerce – The retail sector is experiencing digital transformation and shifting toward advanced data analytics solutions enabled by the Internet of Things (IoT) and AI. The adoption of AI facilitates improvements in speed, efficiency, and accuracy across diverse retail and e-commerce industry segments. As of May 2025, Shopify is giving its merchants new AI-powered tools to help them enhance the online shopping experience for their customers. These tools include an AI store builder for users to set up storefronts using a single prompt, as well as an AI generator for creating elements (e.g., banners) without knowing how to code. The platform also upgraded Sidekick, its AI commerce assistant, with new voice chat and screen-sharing capabilities.
• Manufacturing – AI technology is highly adopted to achieve autonomous management of supply chains and undertake proactive maintenance by assessing the health of machinery and providing those insights to manufacturers, which allows rapid prototyping. Companies are undertaking initiatives to support manufacturing industries in adopting AI. In January 2025, Accenture launched AI Refinery for Industry with a collection of 12 industry agent solutions to help organizations build and deploy a network of AI agents that can enhance their workforce, address industry-specific challenges, and drive business value faster. This announcement builds on Accenture's investments and leadership in driving generative AI reinvention for clients, having supported more than 2,000 projects for organizations across industries.

BFSI, telecommunications, scientific research, education, entertainment, agriculture, and construction industries are also adopting AI to automate their processes and lower manual work, propelling artificial intelligence market growth.

Artificial Intelligence Market Analysis — by Geography

Source: The Insight Partners Analysis

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 key players profiled in the artificial intelligence market report. Other major players were also studied and analyzed in the market study to get a holistic view of the market and its ecosystem.

The report includes the artificial intelligence market forecast by component, organization size, and industry vertical. Based on component, the market is divided into hardware, software, and services. In terms of revenue, the software segment held the largest artificial intelligence market share and is expected to register the highest CAGR during the forecast period.

The scope of the artificial intelligence market report focuses on North America (the US, Canada, and Mexico), Europe (Spain, the UK, Germany, France, Italy, and the Rest of Europe), Asia Pacific (South Korea, China, India, Japan, Australia, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and the Rest of South & Central America). North America dominated the market in 2023, followed by Europe and APAC.

The market in Asia Pacific is segmented into Australia, China, Japan, India, South Korea, and the Rest of APAC. In terms of revenue, China held the largest artificial intelligence market share in APAC. The government of China has demonstrated a strong commitment to advancing research and development in big data and AI, particularly through the promotion of AI+ initiatives. By Q1 2024, the Chinese mainland was home to over 4,500 AI companies, accounting for 15% of the global total. To drive industry growth and maturity, China is actively embedding AI technologies across sectors such as healthcare, education, finance, and urban management, fostering innovation and improving operational efficiency. In a strategic move to bolster the AI ecosystem, China announced a state-backed fund valued at 60 billion yuan (~US$ 8.2 billion) targeted at early-stage AI investments. Launched in January 2025 by the Ministry of Industry and Information Technology (MIIT) and the Ministry of Finance, this fund is managed by Guozhi Investment (Shanghai) Private Equity Fund Management in partnership with the China Integrated Circuit Industry Investment Fund, also known as the Big Fund. This initiative aligns with China's broader efforts to accelerate AI development amid intensifying global competition and tightening US export restrictions on advanced semiconductor technologies.

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