Enterprise Artificial Intelligence Market Analysis And Forecast To 2032: Deployment Mode (On-Premises, Cloud), Organization Size (Small & Medium-sized Enterprises, Large Enterprises), By Technology (Natural Language Processing (NLP), Machine Learning, Com

Enterprise Artificial Intelligence Market Analysis And Forecast To 2032: Deployment Mode (On-Premises, Cloud), Organization Size (Small & Medium-sized Enterprises, Large Enterprises), By Technology (Natural Language Processing (NLP), Machine Learning, Computer Vision, Speech Recognition, Others), By Industry (Media & Advertising, BFSI, IT & Telecom, Retail, Healthcare, Automotive & Transportation, Others), And By Region

The global Enterprise Artificial Intelligence Market was valued at 14.4 billion in 2022 and it is anticipated to grow up to USD 281.3 billion by 2032, at a CAGR of 34.6% during the forecast period.

Enterprise Artificial Intelligence (EAI) is a term for the application of artificial intelligence (AI) technology to business problems. EAI solutions are designed to help organizations automate tasks, improve decision making, and gain insights from data. EAI technology can be used for a variety of tasks, including automating customer service, improving marketing campaigns, and optimizing supply chain management. EAI solutions are often deployed as part of a larger digital transformation strategy, as they can help organizations automate manual processes and improve decision making. While EAI solutions can offer significant benefits, they also come with some risks, such as the potential for bias in algorithms. As such, it is important for organizations to carefully consider their needs before deploying EAI solutions.

Global Enterprise Artificial Intelligence Market Scope and Report Structure

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Market Trends and Drivers

Factors such as the growing demand for virtual assistants, chatbots, and robots from numerous enterprises and the increasing need to analyze exponentially growing demand for data sets are driving the demand for artificial intelligence among enterprises. Additionally, the shift of businesses from traditional to digital platforms is fueling the demand for artificial intelligence technology in enterprises worldwide. Moreover, increasing adoption of artificial intelligence in enterprises to enhance customer satisfaction, provide better organization management, and organize data sets are the key factors boosting the demand for artificial intelligence in enterprises. Several AI service providers are innovating and developing new products & services by collaborating with several government institutes, and research & development departments to fulfill the growing demand for AI in the market

Market Restraints and Challenges

The key restraints and challenges in enterprise artificial intelligence market are mainly due to the lack of skilled personnel and the high cost of AI technology. AI technology is still in its early stages of development and there is a lack of skilled personnel who are able to develop and implement AI applications. This lack of skilled personnel is a major challenge for enterprises looking to adopt AI technology. In addition, AI technology is currently very expensive and this is a major barrier for many enterprises.

Global Enterprise Artificial Intelligence Market Segmental Overview

The report analyses the global Enterprise Artificial Intelligence Market based on Deployment, Organization size, Technology, Industry, and Region.

Global Enterprise Artificial Intelligence Market by Deployment

Based on the deployment, the Enterprise Artificial Intelligence market is divided into P On-Premise, and Cloud. Of these, the on-premise segment registered significant revenue in 2022. The cloud segment held the dominant revenue share in 2022 and is expected to register the highest CAGR during the forecast period. The growth can be attributed to the factors such as increasing investments in technology and the need to reduce costs of on-premise infrastructure maintenance. Cloud deployment enables enterprises to advance their existing system with artificial intelligence-based technology without any reinvestment in their capital cost.

The on-premise segment is projected to grow at a significant CAGR over the forecast period. The growth of the on-premise segment can be attributed to the increasing concerns over the protection of data related to research, personal information, account transactions, and others.

Global Enterprise Artificial Intelligence Market by Organization Size

By organization size, the industry is bifurcated into Small & Medium-sized Enterprises, and Large Enterprises. The large enterprises segment held the largest revenue share in 2022 and is projected to retain its position over the forecast period. The growth of this segment can be attributed to the factors such as the increasing need to enhance productivity, reduce costs on infrastructure, and increase flexibility & agility by reducing redundant tasks.

The small and medium enterprises segment is expected to witness the fastest CAGR of over the forecast period. The growth of this segment is attributed to the increasing inclination of small and medium enterprises toward AI to ease time-consuming work, improve decision-making, and enhance scalability, productivity, and cost-efficiency.

Global Enterprise Artificial Intelligence Market by Technology

Based on technology, the industry is categorized into Natural Language Processing (NLP), Machine Learning, Computer Vision, Speech Recognition, and Others. The natural language processing (NLP) segment accounted for the largest revenue share in 2022 and is projected to grow at a significant CAGR of over the forecast period. The growth of this segment can be attributed to the increase in the adoption of virtual support services among enterprises and rising investments in AI technology by numerous industry verticals. Moreover, owing to the ability to generate & extract intent from a text in a readable, grammatically correct, and stylistically natural form is driving the demand for NLP technology among enterprises. On the other hand, computer vision is expected to witness the fastest-growing segment and is anticipated to expand at a CAGR of over 36.6% in the coming years.

Global Enterprise Artificial Intelligence Market by Industry

Based on industry, the Enterprise Artificial Intelligence market is divided into Media & Advertising, BFSI, IT & Telecom, Retail, Healthcare, Automotive & Transportation, and Others. The IT & telecom segment accounted for the largest revenue share in 2022 and is projected to grow at a significant CAGR over the forecast period. The growth is attributed to an increase in investment from various IT & telecom startups in AI solutions. The retail and BFSI segments accounted for a significant revenue share in 2022. This growth can be attributed to the increasing demand from banking and financial institutions to increase efficiency in business processes, eliminate downtime, and reduce costs on capital investments.

Geographical Analysis of Global Enterprise Artificial Intelligence Market

Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. North America held the dominant revenue share in 2022. Factors such as the existence of leading companies that develop the AI solutions & services, technology infrastructure facilities, and the high number of end-users utilizing data management devices are driving the market in the region. For instance, in February 2019, the president announced the American AI Initiative as the strategy for advancement in artificial intelligence leadership. Moreover, as part of these initiatives, federal authorities have set standards for the real-world implementation and development of AI-based systems across various industrial sectors.

Asia-Pacific is expected to register the fastest CAGR during the forecast period. The regional growth can be attributed to the increasing adoption of AI and installation of data management platforms which resolve issues such as privacy & security, team coordination, and establishment of moral standards for enterprises. Advancements in AI technology, increasing investment expenditures by governments, and the adoption of innovative technologies across various sectors are acting as the key growth drivers. For instance, established in 2021 by 663 academicians worldwide, Hong Kong-based, Asia Pacific Artificial Intelligence Association’s (AAIA) principal objective is to empower scientists in the domains of AI and other relative fields. The organization aims to promote AI development and application through academic research and exchanges.

Major Players in the Global Enterprise Artificial Intelligence Market

Market players are focusing on strategic collaborations to enhance their product offerings. Some prominent participants in the global Enterprise Artificial Intelligence market include  Alphabet Inc., Apple Inc., Amazon Web Services, Inc, IBM, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP SE, Verint Systems Inc., and Wipro Limited. among others.

COVID-19 Impact

The COVID-19 pandemic severely impacted every sector across the world. However, the enterprise artificial intelligence (AI) market experienced growth due to the increased demand for advanced and creative AI-based enterprise products across several sectors such as healthcare, retail, and education during the pandemic. In July 2020, UC San Diego Health, an academic medical center within the University of California, deployed a machine learning-based imaging algorithm that can detect signs of Covid-19 with the help of Amazon Elastic Compute Cloud (Amazon EC2).

Recent Developments

In May 2022, IBM Corporation announced its strategic collaboration with Mohamed bin Zayed University of Artificial Intelligence (MBZUAI), the first research university of artificial intelligence based in Abu Dhabi, United Arab Emirates (UAE).

In February 2022, IBM Corporation announced the acquisition of Sentaca, a leading telco solutions and consulting services provider. By acquiring Sentaca, IBM aims to accelerate the growth of its cloud business.

In 2021 by 663 academicians worldwide, Hong Kong-based, Asia Pacific Artificial Intelligence Associations (AAIA) principal objective is to empower scientists in the domains of AI and other relative fields. The organization aims to promote AI development and application through academic research and exchanges.

In June 2020 by MIT Technology in association with the U.S.-based software company Genesys, AI is offering growth opportunities in the Latin American region as it is helping in tackling numerous critical issues such as food security, unemployment, the smart cities, and natural resources.

Frequently Asked Questions

Q1. How big is the Enterprise Artificial Intelligence market?

Ans. The global Enterprise Artificial Intelligence Market was valued at 14.4 billion in 2022 and it is anticipated to grow up to USD 281.3 billion by 2032, at a CAGR of 34.6% during the forecast period.

Q2. What is the Enterprise Artificial Intelligence Market growth rate?

Ans. The growth rate of the Enterprise Artificial Intelligence Market is 34.6%

Q3. Which region holds a major market share for the market?

Ans. North America holds a major market share of the Enterprise Artificial Intelligence Market in 2021.

Q4. Which segment accounted for the largest Enterprise Artificial Intelligence Market share?

Ans. By industry, the IT & Telecom segment accounted for the largest Enterprise Artificial Intelligence Market share.

Q5. Who are the key players in the Enterprise Artificial Intelligence market?

Ans. The global Enterprise Artificial Intelligence Market report includes players such as   Alphabet Inc., Apple Inc., Amazon Web Services, Inc, IBM, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP SE, Verint Systems Inc., and Wipro Limited. among others.

Q6. What are the factors driving the Enterprise Artificial Intelligence Market growth?

Ans. The major factors driving the growth of the market are increasing need to analyze exponentially growing demand for data sets are driving the demand for artificial intelligence among enterprises.

Q7. What are the key growth strategies of Enterprise Artificial Intelligence Market players?

Ans. The key growth strategies of Enterprise Artificial Intelligence Market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Enterprise Artificial Intelligence Market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Enterprise Artificial Intelligence Market during the forecast period.