Enterprise AI Market by Offering (Solutions, Services), Deployment Mode, Organization Size, Technology (ML, NLP), End-use Industry (IT & Telecom, Healthcare, Retail & E-commerce, Media & Advertisement) and Geography - Global Forecast to 2031

Enterprise AI Market Size & Forecast

The Enterprise AI Market to reach $171.2 billion by 2031 at a CAGR of 32.9% during 2024–2031. The growth of the enterprise AI market is driven by enterprises’ increasing need to enhance customer satisfaction and the growing implementation of enterprise AI solutions in the IT & telecom sectors. However, the high costs of enterprise AI solutions restrain the growth of this market. Furthermore, the increasing need for conversational AI solutions for optimized sales & marketing management and the growing need to automate business processes are expected to generate growth opportunities for the players operating in this market. However, data privacy & security concerns are a major challenge impacting market growth. Additionally, the growing adoption of AI chatbots for customer interaction and the increasing integration of Machine Learning (ML) technology into enterprise AI solutions are prominent trends in this market.

Growing Need to Automate Business Processes Expected to Accelerate Market Expansion

Business process automation solutions help businesses reduce costs by automating routine tasks and allowing employees to focus on more complex and high-value activities. AI can automate business functions, enabling machines to learn from data, identify patterns, and make decisions without human intervention. AI solutions are increasingly being used to automate business processes, leading to increased efficiency, reduced costs, improved customer experiences, and enhanced business efficiency and productivity. Some of the ways in which AI can be leveraged to automate business processes are as follows:

AI-powered predictive analytics helps analyze vast amounts of data to predict future outcomes. It also helps automate decision-making processes like predicting customer behavior or identifying fraud. AI-powered predictive analytics is used to automate decision-making processes in various industries, including finance, healthcare, and retail. Additionally, natural language processing (NLP) enables machines to understand and interpret human languages. NLP is used to automate customer service tasks such as responding to customer queries and complaints. NLP can enable chatbots to understand and respond to customer queries without human intervention.

Adopting machine learning enables machines to learn from data and make intelligent decisions. Machine learning automates tasks such as data entry and extraction, where devices can learn to identify and classify information from documents. Moreover, robotic Process Automation (RPA) involves using software robots to automate tasks such as data entry, invoice processing, and customer service. Robotic Process Automation (RPA) is used in the finance, healthcare, and manufacturing industries to automate routine tasks such as data entry, claims processing, and inventory management.

With the increasing use of AI to automate business processes, market players are focused on launching AI-powered business process automation solutions. For instance, in March 2024, Coupa Software Inc. (U.S.) launched a new AI-driven automation solution to help businesses drive efficiencies. Coupa helps businesses make more informed buying, sourcing, supply chain, and financial decisions to drive growth and better match supply and demand. Thus, innovative automation offerings are helping businesses increase efficiency and productivity.

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Key Findings in the Global Enterprise AI Market Study:

The Services Segment to Register the Higher CAGR

Based on offering, In 2024, the solutions segment is expected to account for the larger share of the global enterprise AI market. However, the services segment is expected to register a higher CAGR during the forecast period. Factors such as the growing need for AI consulting, data analysis, and enterprise-grade AI solution development, maintenance, and support and the rising adoption of services to automate tasks and help improve business operations efficiently are expected to support the growth of this segment. Additionally, the rising implementation of enterprise AI services has promoted several companies to offer various services such as AI consulting, data analysis, enterprise-grade AI solution development, and AI integration. For instance, in September 2023, Lenovo Group Ltd. (Hong Kong) launched edge AI services and solutions designed to enable mass deployment of remote computing capabilities that will significantly accelerate AI readiness and empower new AI applications for any business.

The Cloud-based Deployment Segment to Register the Higher CAGR

Based on deployment mode, in 2024, the on-premise deployment segment is expected to account for the larger share of the global enterprise AI market. However, the cloud-based deployment segment is expected to register a higher CAGR during the forecast period. The growing benefits associated with cloud-based deployment, including easy maintenance of customer data, cost-effectiveness, and scalability, and the increasing demand for enterprise AI solutions that support multi-cloud deployments are expected to support the growth of this segment.

The Small & Medium-sized Enterprises Segment to Register the Higher CAGR

Based on organization size, in 2024, the large enterprises segment is expected to account for the larger share of the global enterprise AI market. However, the small & medium-sized enterprises segment is expected to register a higher CAGR during the forecast period. The increasing need for chatbots and digital assistants among small & medium-sized enterprises, the benefits offered by chatbots for small & medium-sized enterprises, and the increasing need to improve performance, quality management, and customer satisfaction in call centers are expected to support the growth of this segment.

The Natural Language Processing Segment to Register the Highest CAGR

Based on technology, in 2024, the machine learning segment is expected to account for the largest share of the global enterprise AI market. However, the natural language processing segment is expected to register the highest CAGR during the forecast period. Factors such as the growing need to understand, interpret, and generate human language data and the rising adoption of NLP to analyze user preferences, behaviors, and interactions to deliver personalized content are expected to support the growth of this segment. Additionally, several companies are launching enterprise AI solutions with NLP capabilities for automation, efficiency, personalization, and enhanced user experiences across a wide range of applications and domains. For instance, in November 2021, IBM Corporation (U.S.) announced new natural language processing (NLP) enhancement plans for IBM Watson Discovery. These planned updates are designed to help business users in industries such as financial services, insurance, and legal services enhance customer care and accelerate business processes.

The IT & Telecom Segment to Register the Highest CAGR

Based on end-use industry, in 2024, the IT & telecom segment is expected to account for the largest share of the global enterprise AI market. Additionally, this segment is expected to register the highest CAGR during the forecast period. The increasing demand for personalized customer experiences enabled by AI technologies, the rising adoption of AI for analyzing data from network sensors to optimize operations, and the growing utilization of AI to enhance network performance and deliver customized services are expected to support the growth of this segment.

Asia-Pacific to be the Fastest-growing Market

Based on geography, in 2024, North America is expected to account for the largest share of the global enterprise AI market. However, Asia-Pacific is expected to register the highest CAGR during the forecast period. The growing emphasis by companies to launch chatbots and virtual assistants in the Asia-Pacific region, growing demand for chatbots and voice assistant solutions, and increasing demand for AI-powered customer support services are expected to support the growth of this market. Across the region, companies are extensively adopting and providing enterprise AI-based solutions to provide improved customer services. For instance, in May 2023, Lazada Group (Singapore) launched LazzieChat, the first eCommerce AI chatbot in Southeast Asia powered by OpenAI ChatGPT technology in Azure OpenAI Service. LazzieChat can answer users' shopping queries on the Lazada platform to provide an engaging, informed, personalized shopping experience.

Enterprise AI Market: Competitive Analysis

The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market participants over the past 3 to 4 years. The key players operating in the enterprise AI market are NVIDIA Corporation (U.S.), Google LLC (A subsidiary of Alphabet Inc.) (U.S.), Amazon Web Services, Inc. (A Subsidiary of Amazon.com, Inc.) (U.S.), International Business Machines Corporation (U.S.), Microsoft Corporation (U.S.), Verint Systems Inc. (U.S.), SAP SE (Germany), Pegasystems Inc. (U.S.), Wipro Limited (India), Intel Corporation (U.S.), Oracle Corporation (U.S.), Hewlett Packard Enterprise (U.S.), MicroStrategy Incorporated (U.S.), Amelia US LLC (U.S.), and Sentient.io (Singapore).

Enterprise AI Market Report Summary:

Key questions answered in the enterprise AI market report: