According to The Insight Partners' research, the North America Artificial Intelligence Market was valued at US$ 79.2 Billion in 2024 and is expected to reach US$ 725.9 Billion by 2031, registering a CAGR of 38.5% from 2025 to 2031.
The burgeoning popularity of agentic AI and government initiatives & investments supporting AI adoption are among the critical factors attributed to driving the North America artificial intelligence market growth.
Agentic AI is an AI system that can make decisions and take actions on its own, without constant human supervision, to achieve certain human-defined goals. It is a combination of AI techniques, models, and approaches, such as machine learning algorithms, deep learning, reinforcement learning, and large language models (LLMs). It empowers a new breed of autonomous agents that can analyze data, set goals, and act with minimal human supervision. Agentic AI allows these autonomous agents to achieve near-human cognition in different areas, convert them into problem-solving machines that constantly learn and improve with every interaction, and work with dynamic environments. Agentic AI uses machine learning algorithms, deep learning, reinforcement learning, and large language models to process large datasets in real time. Machine learning methods allow these systems to evaluate data and detect trends. Reinforcement learning techniques enable them to learn from their actions and make better decisions over time. LLMs such as those used in OpenAI's ChatGPT, Google Gemini, and Meta Llama enable autonomous computers to interpret and respond to natural language commands. In December 2024, Google LLC introduced Gemini 2.0, an AI model for the agentic era. The company created new AI agents that align with customers' vision of a universal assistant. Gemini 2.0 can handle complicated topics and multi-step questions, such as multimodal queries, sophisticated math calculations, and coding. Software development companies have increased their focus on enhancing agentic AI's ability to test hypotheses autonomously and seek novel solutions, helping users through problem-solving and creativity. According to Microsoft's 2025 Work Trend Index, in the Eastern US, 82% of business leaders plan to use AI agents in the next 12-18 months to expand workforce capacity. Thus, the rising adoption of agentic AI in medicine discovery and engineering design is expected to emerge as a prime trend in the market in the future.
On the contrary, high cost associated with operations hampers the growth of the North America artificial intelligence market.
North America Artificial Intelligence Market Segmentation Analysis:
- By Component, the market is segmented into Software, Hardware, and Services. The Software segment is projected to expand at a CAGR of 37.6% during 2025 - 2031.
- By Deployment, the market is segmented into Cloud and On-Premises. The Cloud segment is projected to expand at a CAGR of 38.3% during 2025 - 2031.
- By Organization Size, the market is segmented into Large Enterprises and SMEs. The Large Enterprises segment is projected to expand at a CAGR of 36.5% during 2025 - 2031.
- By Industry Vertical, the market is segmented into IT and Telecom, BFSI, Healthcare, Manufacturing, Retail and E-Commerce, Automotive, and Others. The IT and Telecom segment is projected to expand at a CAGR of 32.7% during 2025 - 2031.
By country, the market is categorized into the United States, Canada, and Mexico. The United States is projected to expand at a 38.8% CAGR during 2025 - 2031.
Key players operating in the Artificial Intelligence Market are Amazon Web Services Inc., International Business Machines Corp, Microsoft Corp, SAP SE, Google LLC, Accenture Plc, SAS Institute Inc., Intel Corp, NVIDIA Corp, Advanced Micro Devices Inc., among others.
- Jun-2025- IBM announced watsonx AI Labs, a new, developer-first innovation hub in New York City, designed to supercharge AI builders and accelerate AI adoption at scale. watsonx AI Labs connects IBM's enterprise resources and expertise with the next generation of AI developers in order to build breakthrough AI applications for business.
- Nov 2025- SAS, a global leader in data and AI, announced the acquisition of the principal software assets of Hazy, a pioneer in synthetic data technology. This strategic acquisition aims to enhance SAS' robust data and AI portfolio, further equipping its customers with critical and timely synthetic data generation capabilities as their use of AI rapidly expands.
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