Technavio projects that the global artificial intelligence (AI) market will grow by USD 237.4 billion from 2024 to 2028 at a CAGR of 30.07% during the forecast period.
Market drivers
The potential of AI in various industries is vast, with fraud prevention and malicious attack protection driving the market growth. Businesses are increasingly adopting AI in finance, healthcare, marketing, and advertising, leveraging its capabilities in recommendation engines, pricing optimisation, lead generation, chatbots, supply chain optimisation, and more.
Key technologies in the market include parallel processing, data analytics, data science, cognitive solutions, computer vision, deep learning, natural language processing, algorithms, and intelligence standards.
With the potential of supercomputers, quantum computers, and advanced machine learning techniques, AI is set to reach new heights in the coming years.
“Companies must invest in sufficient computer and data storage capabilities for on-premises data centers to process AI-driven data efficiently. Developing in-house AI products can be costly, leading many to consider open-source AI platforms, SaaS, and cloud computing solutions,” the report highlighted.
Market Challenges
Despite its promising growth, the AI market is not without its challenges. A shortage of AI experts, the need for large data sets, specialised infrastructure, and AI expertise are some key hurdles hindering AI implementation.
Ethical concerns, regulatory issues, privacy, bias in algorithms, job displacement, and the significant investment needed for AI technologies also challenge the market.
The Technavio study analysed AI market trends in North America, Europe, APAC, South America, the Middle East, and Africa.
