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Artificial intelligence software market size expected to grow by 22.97%

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The global Artificial Intelligence (AI) Software Market size was valued at USD 138.4 Billion in 2022 and is projected to reach approximately USD 1,094.52 Billion by 2032, growing at a CAGR of 22.97 % over the forecast period 2023 to 2032.

Artificial intelligence software includes machine learning, voice recognition, and virtual assistants. It mimics human behavior by learning data patterns. AI software can recognize speech, images, and text to solve problems and develop better analytics. AI software is admired worldwide because of its oversight to manage business and operating systems with reduced risk management techniques.

Artificial intelligence software is used in multiple sectors such as education, healthcare, automotive, IT and telecommunications, defense and BFSI. As more and more industries become dependent on AI techniques, the market for AI software is growing worldwide.

The Covid-19 pandemic has fueled the artificial intelligence software market with opportunities in the healthcare sector. Meanwhile, the demand for automatic systems or self-driving cars boosted the automotive industry market. Retail industries are mandating AI software to gain better data insights and manage operations while delivering enhanced customer services. In contrast, the banking sector is implementing various strategies against fraudulent activities using AI software. The AI ​​software market is expected to show remarkable growth in the coming years.

RECENT DEVELOPMENTS:

  • In December 2022, Wodify (a leading gym and studio management software company) launched WodifyRetain, an all-in-one artificial intelligence software for gym management. This software aims to improve member retention with AI features to keep the member longer.
  • In December 2022, SEPTA, a regional public transportation authority in Philadelphia, Pennsylvania, announced new AI safety software in partnership with technology company ZeroEyes. SPETA will soon implement this “Deep Zero” AI software that can detect raised firearms and directly notify law enforcement after a weapon has been identified.
  • In November 2022, Amazon announced that the company would launch new AI software, “Create with Alexa”, which allows children to create stories with images, animations and sound.
  • In November 2022, Zenseact, an AI software company, launched a new generation of AI software “OnePilot”. This artificial intelligence software gives cars a higher level of safety. With the launch of this artificial intelligence software, the company aims to reduce traffic accidents and create safe roads.

Key market players:

The AI ​​software market is spread across the globe with several key players involved. Some major market players are – Advanced Micro Devices, Baidu, Inc., Atomwise, Inc., International Business Machines Corporation, Oracle, Cisco, Google LLC, Intel Corporation, Microsoft, Lifegraph, and Cyrcadia Health.

Regional position:

Thanks to key players such as Google Inc, Microsoft Corporation, NVIDIA Corporation, IBM Corporation, and Amazon Web Services, the artificial intelligence software market in North America is booming. The increasing adaptation of AI software in electronic devices, the healthcare sector (especially after the Covid-19 pandemic) and other development sectors have opened doors for investors in the North American region. Geographically, the United States and Canada are two major countries in the North American region that play a vital role in the development of the AI ​​software market. Canada has begun to implement new strategies to grow the AI ​​market as a whole. The Canadian Institute for Advanced Research would participate and be responsible for funding these new strategies. The AI ​​Software Market in the North American Region is Expected to Grow During the Forecast Period 2023-2032

The artificial intelligence software market in the Europe region is expected to grow with the research and innovation program undertaken by the European Commission to increase investment in the AI ​​market in general, which also provides benefits to the market AI software. The Asia-Pacific region is expected to grow during the forecast period 2023-2032, mainly in India, China and Japan. The rise of retail, healthcare, manufacturing, and IT sectors in search of AI security software is responsible for the growth. AI software is widely imposed in the Chinese retail sector. Meanwhile, more and more startups are increasing the demand for the Indian AI software market. In contrast, the AI ​​market in Japan is focused on the robotics sector. Real-time path planning, UAV drone control, and motion control are some of the AI ​​robotics software used in the Japanese market.

Brazil and Argentina are showing a growing number of startups in the region, responsible for the growth of the artificial intelligence software market in Latin America. The Gulf countries in the Middle East are developed, while the African region has yet to match the competition in the AI ​​software market. The Middle East is driving investment in self-driving cars which is expected to grow the AI ​​software market over the forecast period 2023-2032. For example, the Saudi Ministry of Finance announced the approval of two AI software companies, Faceki and QVALON, which are headquartered in the United States.

Market dynamics:

Driver: increased demand for cybersecurity by all sectors

The development or advancement of technology has given rise to cyber threats and cyber attacks, which have forced companies to adopt various cyber security measures to protect confidential information and data carried through networks. Built-in artificial intelligence software for cybersecurity can detect malware on networks, prioritize risks, and protect data sources. AI software in cybersecurity metrics detects threats that become difficult for human analysts due to massive data generation.

Artificial intelligence software is considered an essential cybersecurity tool with its ability to assess systems quickly and adequately. The increased demand for cyber security by all sectors, such as healthcare, education, automotive, defense, BFSI, IT and telecommunications, will show predictable growth for the AI ​​software market.

Restriction: limited skill set or limited number of AI experts for implementation

A limited skill set for implementing complex software is hampering the artificial intelligence software market and is seen as a significant constraint. AI software requires expertise to develop, manage and implement it. Machine learning, deep learning, and cognitive computing are some of the core AI technologies.

A minor inadvertent error can lead to a massive malfunction in the performance of the AI ​​software and significantly affect the results. As companies around the world are investing in AI software and adapting it to run their business, it has become necessary to know about its algorithms, techniques, and other aspects of how it works.

Opportunity: growing demand for autonomous vehicles

The use of artificial intelligence software is increasing in the automotive industry, which provides a widespread opportunity for the AI ​​software market. Artificial intelligence software is used for self-driving cars, which sense the environment and collect data. Cars or vehicles can operate autonomously with machine learning techniques, image recognition and voice processing applications.

The growing demand for self-driving cars or vehicles with smart navigation systems has opened doors for the AI ​​software market. Artificial intelligence software can detect potential dangers to cars, which makes the vehicle safer. The demand for AI software is expansive and huge in the developing automotive industry.

Challenge: privacy and data security issues

The performance of artificial intelligence software depends on the availability of input data. AI software generates huge amounts of data from various sources around the world. Here, the chances of data-related threats increase. Thus, privacy and data security are significant challenges for the AI ​​software market.

Artificial intelligence software is used by the BFSI sector, which carries a large amount of confidential data. Due to a cyberattack, the personal information of countless people falls under the dark web, where the chances of fraudulent activities increase. However, many AI software vendors have already worked on this barrier.

Source: https://www.precedenceresearch.com/artificial-intelligence-software-market

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