The global Artificial Intelligence (AI) in games market size is estimated to grow by USD 27.47 billion from 2025-2029, at a CAGR of 42.3%, according to a report by Technavio.
Market drivers
The latest market research report, Global Artificial Intelligence (AI) Market in Games 2025-2029, underscores AI's transformative role in the games market. With trends like AI-generated content, Virtual Reality (VR), and Augmented Reality (AR), AI is revolutionising the gaming experience.
AI algorithms are revolutionising the game market and enhancing the player experience. By improving sensor technology and creating 3D representations, AI is at the forefront of ensuring players have a more immersive and engaging gaming experience.
Machine learning and neural networks, two key components of AI, are poweringadvanced features like ray tracing and realistic physics simulations, pushing the boundaries of what is possible in gaming.
AI-enabled platforms and deep learning ML models are helping to analyse data for prediction and improve matchmaking, which is a key factor in mobile games. AI technologies also facilitate real-time AI processing, AI-driven animation techniques, and anti-cheat systems.
Market challenges
The market is still grappling with challenges such as processing power and real-time AI processing for multiplayer gaming and matchmaking.
Moreover, network latency, the delay between a player's action and the game server's response, can negatively impact gameplay experiences and remains a problem influenced by factors like internet connection quality, player-server distance, network infrastructure, number of users, and server load.
Future trends
The future of gaming is bright, with deep learning, data analysis, and AI-driven animation techniques paving the way for exciting new developments.
The report gathered insights from six geographies globally, including APAC.
