Global Enterprise Artificial Intelligence Market 2024-2031

Global Enterprise Artificial Intelligence Market 2024-2031

Enterprise Artificial Intelligence Market Size, Share & Trends Analysis Report by Component (Solution, and Services), by Technology (Machine learning and deep learning, and Natural Language Processing (NLP)), by Application (Security and Risk Management, Marketing Management, Customer Support and Experience, Human Resource and Recruitment Management, Analytics Application, and Process Automation), and by Deployment Type (Cloud, and On-Premises) and by Organization (Large Enterprises, and Small And Medium Enterprises) Forecast Period (2024-2031)

Enterprise artificial intelligence (AI) market is anticipated to grow at a CAGR of 27.6% during the forecast period (2024-2031). The global enterprise AI market is attributed to advancements in AI technology, the increasing availability of data, and the demand for improved business efficiency and competitiveness. Enterprises are adopting AI owing to advancements in machine learning, deep learning, natural language processing, big data analytics, and IoT integration. AI-powered automation solutions help streamline tasks, reduce errors, and provide personalized offerings. Additionally, AI offers cost savings, scalability, and the ability to differentiate in the market through innovation. Supportive regulatory frameworks and ethical guidelines are also driving the adoption of AI, fostering an environment that encourages innovation.

Market Dynamics

Increased Data Availability

The growing data availability from IoT devices, social media, and business operations is transforming AI systems, enabling enterprises to gain insights, automate processes, and improve decision-making. In May 2024, Google Cloud Consulting launched the Generative AI Ops service aims to assist enterprises in transitioning new AI workloads into production. The service provides a team of experts to assist companies in navigating the complex process of generative AI systems design, large language model architectures, and prompt engineering.

Increased Innovation and Competitive edges

By promoting rapid development of products and process optimization, generative AI can increase innovation and provide businesses a competitive edge which is promoting enterprises to adopt AI solutions. To cater to the demand of enterprise, in May 2023, Cognizant launched Cognizant Neuro AI, an enterprise-wide platform designed to accelerate the adoption of generative AI technology. The platform uses Cognizant’s consulting, advisory, ecosystem partnership, digital studios, solutions, and delivery capabilities to help clients transition into the era of generative AI. It guides firms through the journey of understanding, consuming, and customizing AI models.

Market Segmentation

Based on components, the market is segmented into solutions, and services.

Based on technology, the market is segmented into machine learning, deep learning, and natural language processing (NLP).

Based on application, the market is segmented into security and risk management, marketing management, customer support and experience, human resource and recruitment management, analytics application, and process automation.

Based on deployment, the market is segmented into clouds, and on-premises.

Based on organization, the market is segmented into large enterprises and small and medium enterprises.

Cloud-based is Projected to Emerge as the Largest Segment

The high demand for deployment of sophisticated, effective, and scalable AI applications by enterprises, owing to technological developments in deep learning methods, hardware, and AI algorithms is a key factor contributing to the high share of this market segment. In November 2023, NeevCloud launched India's first AI SuperCloud, aiming to make the country self-reliant on AI and supercomputing by 2026. The company deployed AI cloud infrastructure with 40,000 GPUs and $1.5 billion worth of storage, democratizing access to AI and supercomputing for enterprises and startups.

Large Enterprises Sub-segment to Hold a Considerable Market Share

Good customer experience is vital for large enterprises to operate, AI enhances customer experience by developing personalized experiences, resulting in increased satisfaction and loyalty, a crucial competitive advantage. The high adoption of enterprise AI by large enterprises drives the growth of this market segment. In August 2023, Google unveiled new AI chips, an enterprise-scale tool for watermarking and identifying images, and partnerships with General Motors and Estee Lauder Companies at its Google Next conference, aiming to bring AI technology to large businesses.

Regional Outlook

The global enterprise AI market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America).

North America Holds Major Market Share

The Government initiatives and supportive regulatory frameworks are promoting the widespread adoption of AI technologies across various sectors. For instance, in November 2023, the US Department of State unveiled its first-ever enterprise AI strategy, establishing a centralized vision for AI innovation, infrastructure, policy, governance, and culture. The strategy aims to ensure the ethical and responsible use of AI, including protecting data security and privacy, while leveraging AI for public diplomacy, language translation, and more.

Market Players Outlook

The major companies serving the enterprise AI market include Accenture PLC, IBM Corp., Microsoft Corp., Oracle Corp., and Siemens AG among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers and acquisitions to stay competitive in the market. For instance, in February 2024, Wipro launched the Wipro Enterprise AI-Ready Platform, a service that enables clients to create fully integrated, customized AI environments. The platform uses IBM's Watsonx AI and data platform to accelerate AI adoption and enhance operations. The partnership between Wipro and IBM aims to build joint solutions for robust, integrated, and enterprise-ready AI solutions.