Artificial Intelligence (AI) in Media and Entertainment

Global Artificial Intelligence (AI) in Media and Entertainment Market to Reach US$89.0 Billion by 2030

The global market for Artificial Intelligence (AI) in Media and Entertainment estimated at US$23.8 Billion in the year 2024, is expected to reach US$89.0 Billion by 2030, growing at a CAGR of 24.5% over the analysis period 2024-2030. Services, one of the segments analyzed in the report, is expected to record a 25.8% CAGR and reach US$60.5 Billion by the end of the analysis period. Growth in the Hardware / Equipment segment is estimated at 22.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$6.6 Billion While China is Forecast to Grow at 23.2% CAGR

The Artificial Intelligence (AI) in Media and Entertainment market in the U.S. is estimated at US$6.6 Billion in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$13.3 Billion by the year 2030 trailing a CAGR of 23.2% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 22.1% and 20.5% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 16.3% CAGR.

Global Artificial Intelligence (AI) in Media and Entertainment Market – Key Trends & Drivers Summarized

How AI Is Transforming Media and Entertainment from Creation to Consumption

Artificial Intelligence (AI) is reshaping the media and entertainment industry at an unprecedented pace, driving innovation across content creation, distribution, and audience engagement. The traditional linear model of production and consumption is being replaced by AI-powered workflows that automate processes, personalize experiences, and analyze massive datasets in real time. Media houses, streaming platforms, advertising agencies, and gaming companies are leveraging AI to unlock efficiencies, reduce costs, and deliver content that resonates on a deeply individual level. One of the most notable trends is the integration of AI into creative pipelines, where it is used to generate scripts, design visuals, score music, and even animate scenes—augmenting human creativity rather than replacing it.

Simultaneously, AI is transforming how content is curated and delivered. Recommendation engines powered by machine learning have become fundamental to streaming platforms, helping users navigate vast content libraries by offering tailored suggestions based on viewing history, behavior, and contextual signals. This not only enhances user satisfaction but also increases content consumption and platform stickiness. In journalism and publishing, AI is being used to generate news summaries, local updates, and financial reports autonomously, accelerating output and freeing up journalists for more investigative work. As AI technologies continue to mature, their integration with cloud infrastructure and real-time data analytics tools is enabling media organizations to operate with greater agility and responsiveness.

Can AI Personalize the Viewer Experience and Redefine Engagement?

Personalization has become the cornerstone of modern media consumption, and AI is the driving force behind its evolution. From personalized movie trailers to dynamic advertising and AI-curated playlists, media companies are using deep learning algorithms to segment audiences with surgical precision. These models analyze vast amounts of structured and unstructured data—ranging from click behavior and watch time to sentiment expressed on social media—to build comprehensive viewer profiles. As a result, users receive content recommendations, ads, and engagement prompts that feel intuitive, timely, and relevant. This hyper-personalized experience not only boosts retention but also allows media brands to differentiate in a highly saturated marketplace.

AI is also playing a pivotal role in interactive and immersive content experiences. In gaming, real-time AI-driven opponent behaviors, dynamic storytelling, and procedurally generated environments are elevating gameplay and engagement. In virtual concerts, live events, and augmented reality (AR) experiences, AI is being used to simulate crowd reactions, manage visual overlays, and enhance audio-visual interactions. Furthermore, chatbots and virtual influencers—powered by natural language processing—are being employed to extend brand narratives and connect with audiences beyond traditional formats. As media becomes increasingly interactive, AI is enabling a two-way flow of communication, where users are no longer just passive consumers but co-creators and participants in the experience.

How Is AI Revolutionizing Content Production and Monetization?

In the realm of content creation, AI is enabling faster, smarter, and more cost-effective production processes. Scriptwriting assistants analyze successful narratives and suggest plot structures or dialogue lines. AI-powered editing software can automatically select the best scenes, adjust color grading, and optimize audio quality, cutting down post-production time significantly. Visual effects (VFX) studios are using AI to automate complex tasks such as rotoscoping and motion capture enhancement, freeing up artists to focus on more creative aspects of storytelling. In animation, AI can generate entire sequences based on minimal input, reducing turnaround time while maintaining artistic integrity.

On the monetization side, AI is being integrated into programmatic advertising systems that analyze viewer behavior in real time and serve hyper-targeted ads. Dynamic ad insertion, powered by AI, allows broadcasters and streamers to customize commercial breaks based on demographics, geography, and user preferences. AI is also transforming rights management and content licensing through intelligent tagging, cataloging, and usage tracking—helping content owners maximize returns across multiple distribution platforms. In music and publishing, AI tools are enabling artists and authors to better understand audience sentiment and market trends, guiding creative decisions and revenue strategies. This convergence of creativity, analytics, and automation is fueling new business models across the media value chain.

What’s Fueling the Growth in the AI in Media and Entertainment Market?

The growth in the Artificial Intelligence in media and entertainment market is driven by several factors tied to technological advancements, evolving content delivery ecosystems, and increasing consumer demand for personalization. One of the primary growth drivers is the explosive rise in digital content consumption, which has created a need for scalable and intelligent systems to manage content curation, production, and delivery. The proliferation of OTT platforms and mobile-first entertainment has accelerated the deployment of AI-based recommendation engines, viewer behavior analytics, and adaptive streaming technologies.

The integration of AI with real-time video processing, natural language generation, and deepfake technology is enabling the creation of high-quality content at lower costs and with greater efficiency. Meanwhile, the demand for immersive and interactive experiences in gaming, virtual events, and extended reality (XR) platforms is pushing the adoption of AI for real-time personalization, physics simulation, and character modeling. Another significant driver is the increasing application of AI in media analytics, helping companies measure engagement, sentiment, and campaign effectiveness across digital channels. Finally, the need for efficient digital rights management, content moderation, and audience segmentation is reinforcing AI’s role as an essential layer in the monetization and distribution strategy of modern media companies. Together, these trends are propelling the AI in media and entertainment market into a new era of intelligent, dynamic, and data-driven storytelling.

SCOPE OF STUDY:

The report analyzes the Artificial Intelligence (AI) in Media and Entertainment market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Solution (Services, Hardware / Equipment); Application (Sales & Marketing, Gaming, Personalization, Production Planning & Management, Plagiarism Detection, Fake Story Detection, Other Applications)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; and Rest of Europe); Asia-Pacific; Rest of World.

Select Competitors (Total 23 Featured) -

• Amazon Web Services, Inc.
• GrayMeta, Inc.
• IBM Corporation
• Move AI Ltd.
• Pixellot
• Spiideo AB
• Sportway AB
• Synthesia
• Valossa Labs Oy
• Veritone

TARIFF IMPACT FACTOR

Our new release incorporates impact of tariffs CBob geographical markets as we predict a shift in competitiveness of companies based on HQ country, manufacturing base, exports and imports (finished goods and OEM). This intricate and multifaceted market reality will impact competitors by artificially increasing the COGS, reducing profitability, reconfiguring supply chains, amongst other micro and macro market dynamics.

We are diligently following expert opinions of leading Chief Economists (14,949), Think Tanks (62), Trade & Industry bodies (171) worldwide, as they assess impact and address new market realities for their ecosystems. Experts and economists from every major country are tracked for their opinions on tariffs and how they will impact their countries.

We expect this chaos to play out over the next 2-3 months and a new world order is established with more clarity. We are tracking these developments on a real time basis.

As we release this report, U.S. Trade Representatives are pushing their counterparts in 183 countries for an early closure to bilateral tariff negotiations. Most of the major trading partners also have initiated trade agreements with other key trading nations, outside of those in the works with the United States. We are tracking such secondary fallouts as supply chains shift.

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APRIL 2025: NEGOTIATION PHASE

Our April release addresses the impact of tariffs on the overall global market and presents market adjustments by geography. Our trajectories are based on historic data and evolving market impacting factors.

JULY 2025 FINAL TARIFF RESET

Complimentary Update: Our clients will also receive a complimentary update in July after a final reset is announced between nations. The final updated version incorporates clearly defined Tariff Impact Analyses.

Reciprocal and Bilateral Trade & Tariff Impact Analyses:

USA
CHINA
MEXICO
CANADA
EU
JAPAN
INDIA
176 OTHER COUNTRIES.

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