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• The Global Market for Artificial Intelligence: an insight

The Global Market for Artificial Intelligence

In 2022, the global AI market reached an estimated value of $119.78 billion, and it is projected to reach an impressive $1,591.03 billion by 2030, with a notable compound annual growth rate (CAGR) of 38.1% during the period from 2022 to 2030. The North American AI market was valued at $51 billion in 2021.

The industry's growth is expected to be positively influenced by favorable government initiatives. The establishment of machine learning and AI subcommittees within federal governments has generated significant interest in the AI industry. In 2020, the Government of India increased its investment in Digital India to $477 million to support the advancement of AI, IoT, big data, cybersecurity, machine learning, and robotics. The BFSI sector is anticipated to experience substantial growth in the AI market due to the increasing adoption of AI solutions in data analytics, fraud detection, cybersecurity, and database systems.

The rapid proliferation of digital technologies and the internet has been a major driving force behind the global AI market's growth in recent years. Tech giants' substantial investments in research and development continuously fuel technological advancements across various industries. The growing demand for AI technology in automotive, healthcare, banking and finance, manufacturing, food and beverages, logistics, and retail sectors is expected to drive significant market growth in the coming years. Technological innovation has always played a crucial role in the majority of industries.

The cybersecurity industry has witnessed a rise in the theft of sensitive organizational data and personal information in recent times. To address these growing risks, businesses are increasingly turning to AI technologies. Artificial intelligence helps enhance response times by quickly identifying potential dangers and patterns. Moreover, it assists in defending against threats such as Distributed Denial of Service (DDoS) attacks.

During the forecast period, the Asia Pacific region is projected to be the fastest-growing AI market. The increasing investments by organizations towards AI adoption and agreements like Baidu Incorporation's divestiture of its financial services group, which provides consumer credit, wealth management, and other business-related services, are boosting the demand for AI technology. Moreover, the widespread adoption of AI across industries such as automotive, healthcare, retail, and food and beverages are propelling the growth of the AI market in the Asia Pacific region.