Global Artificial Intelligence (AI) in Social Media Market Size, Share & Industry Trends Analysis Report By Application, By Technology, By Enterprise Size (Large Enterprises, and Small and Medium Enterprises (SMEs)), By Vertical, By Regional Outlook and

Global Artificial Intelligence (AI) in Social Media Market Size, Share & Industry Trends Analysis Report By Application, By Technology, By Enterprise Size (Large Enterprises, and Small and Medium Enterprises (SMEs)), By Vertical, By Regional Outlook and Forecast, 2023 - 2029

The Global Artificial Intelligence (AI) in Social Media Market size is expected to reach $6.7 billion by 2029, rising at a market growth of 28.2% CAGR during the forecast period.

AI is commonly used by social media sites to improve user experience, develop content, target advertisements, and offer better services. Additionally, AI is frequently used in social media for trend monitoring, fraud detection, image and video identification, and personalized content recommendations. These are but a few instances of how AI is used for social media use. In order to give users even better experiences, new applications are continually being created that use AI in social media.

The market is expanding due to the increasing use of AI in social media applications for efficient advertising and its rising popularity for providing real-time data on target audiences. Additionally, the market for artificial intelligence in social media is expanding due to a boom in data created through social media platforms. On the other hand, it is projected that the growing accessibility of social media machine-learning programs will create a wide range of prospects for market growth throughout the projection period.

Furthermore, the development of artificial intelligence in the social media industry has greatly improved the platforms' digital capabilities. For social media posts, AI may create text, photos, and videos, as well as curate already-existing content. AI-powered tools, for instance, enable users to produce unique graphics and movies for social networking sites.

AI systems can evaluate user data to produce tailored advertising and content recommendations. AI is used by social media companies to customize user feeds based on preferences and interests. AI can examine social media data to comprehend and classify user sentiments regarding particular subjects or companies. This aids marketers and companies in learning about the interests and behavior of customers.

COVID-19 Impact Analysis

In the social media sector, artificial intelligence (AI) has benefited from the COVID-19 outbreak. This is a result of the growing popularity of the work-from-home model, which forces businesses to use social media with AI. As a result, the application of AI in the social media market has been significantly impacted by this factor. The market experienced growth during the pandemic and is predicted to continue growing after COVID-19 due to the rising consumer adoption of e-commerce and online shopping brought on by the increasing internet and smartphone penetration and the growing industry adoption of AI in social media.

Market Growth Factors

Increased adoption of AI in social media applications to enhance advertising effectiveness

The increasing number of individuals utilizing social media platforms has sparked the attention of technology companies to implement AI services, ultimately propelling the expansion of AI in the social media market. In addition, numerous businesses across various industries, including consumer brands, retailers, and automotive companies, utilize various social media platforms to advertise and enhance their products and brand recognition. This will assist businesses in marketing their portfolio and expanding their reach to a wider audience. Hence, the increased reach of businesses with AI in social media and the rising usage of social media for advertising is expected to surge the market growth.

Use of AI in social media platforms to analyze trends and achieve a competitive advantage

Organizations can utilize social media data to gather extensive information about their markets and customers and streamline marketing and operational tasks through automation. Utilizing AI in social media platforms can enhance a company's presence and provide a competitive advantage by efficiently analyzing competition and customer behavior. In addition, AI technology offers a range of applications in social media, including customer experience management, performance monitoring, sales and marketing management, and workforce management. These factors are expected to provide various advantages to organizations and thus drive market growth.

Market Restraining Factors

Limited availability of AI experts

The incorporation of AI solutions into pre-existing computer systems is a challenging endeavor that necessitates the use of voluminous amounts of data processing in order to simulate the operation of a human brain. Even very trivial mistakes can bring about the collapse of a whole system or the malfunctioning of a particular solution, which can have a significant impact on both the conclusion and the result that was intended. Artificial intelligence (AI) technology is still in the early stages of its product lifecycle since there is a shortage of workers who have an in-depth understanding of this technology. Thus, it is anticipated that the lack of AI experts to implement such tools will restrict the market growth throughout the forecast period.

Technology Outlook

Based on technology, the artificial intelligence (AI) in social media market is segmented into machine learning & deep learning and natural language processing (NLP). The natural language processing (NLP) segment acquired a significant revenue share in the artificial intelligence (AI) in social media market in 2022. This is due to the fact that natural language processing (NLP) makes it possible to automatically extract and identify the sentiment that is being transmitted in text data. This is frequently more accurate and trustworthy than human annotation, which is why NLP is becoming increasingly popular in social media.

Application Outlook

On the basis of application, the artificial intelligence (AI) in social media market is divided into sales & marketing, customer experience management, predictive risk assessment and image recognition. The sales & marketing segment held the highest revenue share in the artificial intelligence (AI) in social media market in 2022. This is owing to the various benefits of AI in social media marketing, like increasing user engagement. AI allows greater performance data and smarter marketing with refined content targeting. It also aids in decreasing marketing expenses and provides greater ROI. AI increases sales and marketing production and efficiency while enabling simplified management and marketing procedures.

Enterprise Size Outlook

By enterprise size, the artificial intelligence (AI) in social media market is classified into large enterprises and small and medium enterprises (SMEs). The large enterprises segment witnessed the largest revenue share in the artificial intelligence (AI) in social media market in 2022. This is because there is an abundance of resources and experience that can be utilized to develop and put into practice advanced AI solutions. Additionally, in order to boost their social media presence, increase customer interaction, and gain a competitive edge in the industry, large organizations are making significant investments in artificial intelligence.

Vertical Outlook

Based on the industry vertical, the artificial intelligence (AI) in social media market is bifurcated into BFSI, IT & telecom, retail & e-commerce, media & advertisement, education and others. The IT & telecom segment recorded a significant revenue share in the artificial intelligence (AI) in social media market in 2022. This is due to their usage to handle customers' problems at a scale that is inconceivable for human agents. The artificial intelligence algorithms that power customer communication need to process enormous volumes of historical data and real-time interactions. In addition, virtual assistants or chatbots are frequently used as the interface for customer support solutions that are powered by artificial intelligence.

Regional Outlook

Region-wise, the artificial intelligence (AI) in social media market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America region led the artificial intelligence (AI) in social media market by generating the maximum revenue share in 2022. This is due to the high usage of social media platforms in North America, coupled with the region's significant internet penetration, which has increased demand for AI-powered social media tools. In addition, the prompt integration of cutting-edge technologies and growing corporate expenditures aimed at optimizing customer experience via artificial intelligence are driving the market's expansion in the region.

The major strategies followed by the market participants are Acquisitions. Based on the Analysis presented in the Cardinal matrix; Microsoft Corporation, and Google LLC (Alphabet Inc.) are the forerunners in the Artificial Intelligence (AI) in Social Media Market. Companies such as Amazon Web Services, Inc. (Amazon.com, Inc.), Adobe, Inc., and Meta Platforms, Inc. (Facebook) are some of the key innovators in Artificial Intelligence (AI) in Social Media Market.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Baidu, Inc., Meta Platforms, Inc. (Facebook), IBM Corporation, Microsoft Corporation, Adobe, Inc., Snap, Inc. (SnapChat), Amazon Web Services, Inc. (Amazon.com, Inc.), Google LLC (Alphabet Inc.), Salesforce, Inc., and Hootsuite, Inc.

Recent Strategies Deployed in Artificial Intelligence (AI) in Social Media Market

Mergers and Acquisitions:

Oct-2022: Google completed the acquisition of Alter, an artificial intelligence (AI) avatar startup engaged in helping brands and creators express themselves. Through this acquisition, Google would improve both the quality and quantity of the content provided to consumers.

Sep-2022: IBM completed the acquisition of Dialexa, a foremost digital product engineering consulting service. This acquisition would improve IBM's hybrid cloud and AI abilities, and boost growth for customers. However, the acquisition is expected to enhance IBM's product engineering expertise and provide end-to-end digitalization services for consumers.

May-2022: Hootsuite took over Sparkcentral, a US-based developer of customer engagement platforms. The addition of Sparkcentral enables Hootsuite's clients to better take care of the needs of their clients.

May-2022: Microsoft took over Nuance Communications, a leader in conversational AI and ambient intelligence industries. This partnership aimed to bring together Nuance’s best-in-class conversational AI and ambient intelligence with Microsoft’s secure as well as trusted industry cloud offerings. Also, this partnership would help providers offer more affordable, effective, and accessible healthcare, and help businesses in every industry create more personalized and meaningful customer experiences.

Aug-2021: Hootsuite completed the acquisition of Heyday, a Canada-based developer of the chatbot platform. This acquisition enables the acquiring company to deliver a comprehensive suite of tools intended to support e-commerce, and marketer’s customer service teams, to develop genuine, relevant, experiences for their clients at all phases of the purchasing process.

Mar-2021: Microsoft completed the acquisition of Two Hat, a Canada-based developer of content moderation software. Through this acquisition, Microsoft aims at making global online communities more secure.

Jan-2021: Snap acquired Ariel AI, a UK-based developer of human learning technology. This acquisition provides Snapchat users with an improved AR experience.

Partnerships, Collaborations and Agreements:

Mar-2023: Adobe partnered with NVIDIA, a US-based designer of discrete graphics processing units. The partnership focuses on accelerating advanced creative workflows by unlocking the power of generative AI.

Sep-2022: Amazon Web Services collaborated with SK Telecom, a South Korea-based information and communications company. The collaboration focuses on jointly developing computer vision services. Further, through this collaboration, the companies intend to make it easy for customers to develop, use and scale computer vision applications, which improves productivity, enhances facility safety, and maintains equipment.

Dec-2021: Google Cloud partnered with Kyndryl, a US-based information technology company. The partnership focuses on advancing digital transformation amongst its clients and assisting them in becoming a more data-driven, sustainable business.

Jun-2021: Amazon Web Services signed a partnership agreement with Salesforce, a US-based provider of enterprise computing solutions. The partnership aims at making it simpler for customers to make full use of AWS and Salesforce's capabilities, and to develop and deploy business applications that focus on advancing digital transformation.

Product Launches and Expansions:

Mar-2023: Microsoft added an image creator tool to Bing Chat. The new image creator tool is powered by an advanced version of OpenAi's DALL E model. Additionally, the new tool enables the users to create an image through words, or by portraying a picture.

Mar-2023: Adobe introduced Firefly, an AI-based intelligence tool. The new tool allows users to type commands to instantly edit and modify images.

Feb-2023: Snapchat introduced My AI. My AI is a chatbot that is powered by OpenAI's GPT technology. The new chatbot recommends birthday plans, trips, and answers trivia questions.

Scope of the Study

Market Segments covered in the Report:

By Application

Sales & Marketing
Customer Experience Management
Predictive Risk Assessment
Image Recognition
Others
By Technology

Machine Learning & Deep Learning
Natural Language Processing (NLP)
By Enterprise Size

Large Enterprises
Small and Medium Enterprises (SMEs)
By Vertical

BFSI
IT & Telecom
Retail & E-Commerce
Media & Advertisement
Education
Others
By Geography

North America
US
Canada
Mexico
Rest of North America
Europe
Germany
UK
France
Russia
Spain
Italy
Rest of Europe
Asia Pacific
China
Japan
India
South Korea
Singapore
Malaysia
Rest of Asia Pacific
LAMEA
Brazil
Argentina
UAE
Saudi Arabia
South Africa
Nigeria
Rest of LAMEA
Companies Profiled

Baidu, Inc.
Meta Platforms, Inc. (Facebook)
IBM Corporation
Microsoft Corporation
Adobe, Inc.
Snap, Inc. (SnapChat)
Amazon Web Services, Inc. (Amazon.com, Inc.)
Google LLC (Alphabet Inc.)
Salesforce, Inc.
Hootsuite, Inc.
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