According to a survey conducted in 2022 worldwide among marketing leaders, ** percent of respondents stated that the most popular reason for using artificial intelligence (AI) to improve customer experience is to predict customer behavior and needs. Another ** percent of them said that they use AI in their marketing company in order to uncover frequent customer journeys. In comparison, only ** percent of marketing leaders shared that they use AI to improve MQLs (e.g. chatbots).

In a 2022 survey conducted among consumers in the Asia-Pacific region, ** percent of the respondents in India already trusted AI to deliver good customer experience. In comparison, ** percent of the respondents in New Zealand indicated they would never trust AI to deliver good customer experience the way they trust humans.

This statistic shows the Chinese market size of AI customer services industry in 2018 and a forecast up to 2022. It was forecasted that by 2022 the market size of customer service from artificial intelligence in China would amount to around 16.1 billion yuan.

Artificial intelligence (AI) is a technology that enables products to be combined with new features and create innovative customer experiences . A lot of businesses have embraced various AI tools to offer customer care interactions. Research gaps arise from an unclear picture of how customers' experience with online shopping will be affected by the experience and usage of AI tools. This study aims to predict satisfied online shoppers based on their usage experience with AI tools, by leveraging data mining methods and machine learning techniques. Data was collected from India, China, and Canada in 2021 and 2022 by distributing online survey to online shoppers with exposure to AI tools. Five machine learning algorithms; decision tree, random forest, naïve bayes, gradient boosted tree and multilayer perceptron neural network techniques were applied and compared to predict satisfied shoppers using. Overall, all the models showed a prediction accuracy of more than 86.5% f-score value and random forest outperformed with 91.5% f-score value. The findings demonstrated that the online retail business can identify satisfied customers with 91.5% accuracy using machine learning. Business can derive such data-driven actionable knowledge from integrating machine learning into their operations, resulting in a more satisfied customer base and a more efficient and competitive business model.

The market for Digital Customer Experience (DCX) software continues to expand rapidly, driven by the increasing adoption of digital channels by customers and the need for businesses to deliver seamless and personalized experiences across all touchpoints. The global DCX software market size was valued at USD 22.1 billion in 2021 and is expected to grow at a compound annual growth rate (CAGR) of 13.4% from 2022 to 2030, reaching a value of USD 56.3 billion by the end of the forecast period. Key trends in the DCX software market include the increasing adoption of cloud-based solutions, the use of artificial intelligence (AI) and machine learning (ML) to personalize experiences, and the integration of DCX software with other enterprise applications such as customer relationship management (CRM) and marketing automation. Cloud computing allows businesses to deploy and scale their DCX solutions more easily and quickly, and AI and ML can be used to automate tasks, personalize recommendations, and provide real-time insights into customer behavior. The integration of DCX software with other enterprise applications can help businesses to create a more comprehensive view of their customers and deliver more consistent experiences across all channels.

AI-driven engagement is forecasted to be the fastest growing customer experience technology use case in the world between 2017 and 2022, with a compound annual growth rate (CAGR) of around **** percent. Interaction management and ubiquitous commerce trail close behind, both boasting a CAGR of over ** percent. Customer experience platforms allow companies to analyze usage information and customer preferences in order to improve user experience.

The AI market in call center applications is experiencing robust growth, driven by the increasing need for improved customer service efficiency and cost reduction. The market, valued at approximately $XX million in 2025 (assuming a logical extrapolation from the provided CAGR of 25.80% and a base year of 2025), is projected to reach a significant size by 2033, fueled by a compound annual growth rate exceeding 25%. Key drivers include the rising adoption of cloud-based solutions offering scalability and cost-effectiveness, the increasing complexity of customer interactions necessitating AI-powered automation, and the growing demand for personalized and 24/7 customer service. Significant industry segments benefiting from this technology include BFSI (Banking, Financial Services, and Insurance), Retail & E-Commerce, and Information Technology, each leveraging AI to streamline operations, improve customer satisfaction, and enhance agent productivity. While the initial investment in AI implementation can be a restraint, the long-term return on investment through improved efficiency and reduced operational costs outweighs the upfront expenditure. The competitive landscape is dynamic, with major players like Google, IBM, Microsoft, and Amazon Web Services alongside specialized AI providers constantly innovating and expanding their service offerings. The North American market currently holds a substantial share, but the Asia Pacific region is poised for rapid growth, driven by increasing digital adoption and a burgeoning customer base. The forecast period (2025-2033) anticipates continued market expansion, primarily fueled by advancements in natural language processing (NLP), machine learning (ML), and the integration of AI with other emerging technologies. The evolution of AI-powered chatbots capable of handling complex customer inquiries and the increasing sophistication of sentiment analysis tools will significantly contribute to this growth. Further market segmentation by deployment (cloud vs. on-premise) will continue to evolve, with cloud-based solutions gaining further traction due to their flexibility and accessibility. The ongoing demand for enhanced customer experiences and the potential for AI to personalize these interactions across diverse industries will solidify the long-term growth trajectory of the AI market within call center operations. Challenges remain in areas such as data privacy, security, and ensuring ethical AI practices. Addressing these issues will be crucial for sustained market expansion and widespread adoption. Recent developments include: July 2022: The AI platform was launched by Laivly, a pioneer in AI and automation for contact centers. Laivly transforms real-time intelligence into real-time action that generates higher contact center productivity, boosts ROI, and provides a better customer experience. It is designed to swiftly and easily upgrade call centers at scale. On each agent's desktop, Laivly adds automation to help them complete jobs quickly, and the built-in AI shows the team the workflows of the most productive agents. The end result is a contact center that is quicker, wiser, more accurate, and more effective, allowing human agents to spend more time providing excellent customer experiences and less time battling technology., March 2022: In order to provide an out-of-the-box, complete solution for the contact center, Google launched the Cloud Contact Center AI Platform. It brings together sales, marketing, and support teams around data from the customer journey. It does this by combining the benefits of artificial intelligence (AI), cloud scalability, multi-experience capabilities, and close interaction with customer relationship management (CRM) platforms.. Key drivers for this market are: Increasing Usage of AI by Organizations in Pursuit of Enhanced Customer Support Service Offerings, Increasing Role of Social Media for Customer Engagement; The Exponential Growth of Data. Potential restraints include: Increasing Usage of AI by Organizations in Pursuit of Enhanced Customer Support Service Offerings, Increasing Role of Social Media for Customer Engagement; The Exponential Growth of Data. Notable trends are: BFSI Vertical is Expected to Hold the Largest Market Size During Forecast Period.

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Artificial Intelligence in Social Media Market Size 2024-2028

The artificial intelligence (AI) in social media market size is forecast to increase by USD 5.57 billion at a CAGR of 27.82% between 2023 and 2028.

Artificial Intelligence is revolutionizing the social media market by enabling advanced data analysis and personalized user experiences. The growing demand for data integration and visual analytics is a significant market growth factor, as businesses seek to gain insights from vast amounts of social media data.
Additionally, the increasing use of social media for advertising has created a need for AI-powered solutions to effectively target and engage consumers. However, the lack of a skilled workforce for the development of AI algorithms poses a challenge for market growth. Despite this, the potential benefits of AI in social media, including improved customer engagement and enhanced marketing capabilities, are driving innovation and investment in this area.

Artificial Intelligence in Social Media Market Analysis

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How is this market segmented and which is the largest segment?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD Billion' for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

Application

  Predictive risk management
  Consumer experience management
  Sales and marketing


End-user

  Large Enterprise
  SMEs


Geography

  North America

    US


  Europe

    Germany
    UK


  APAC

    China
    India


  Middle East and Africa



  South America

By Application Insights

The predictive risk management segment is estimated to witness significant growth during the forecast period. Artificial Intelligence (AI) is revolutionizing the social media market, particularly in areas of advertising, data security, and user experience. Machine learning programs are used for content recommendation, fraud detection, and predictive risk assessment, enabling large enterprises to optimize their sales and marketing efforts and enhance customer experience management. AI technology is also employed for content creation, curation, and personalization, catering to user behavior, preferences, and sentiments. Sentiment analysis, chatbots, and automated moderation are essential tools for governments and businesses to ensure the ethical use of consumer data for targeted advertising campaigns. AI-enabled smartphones and Real-Time Operating Systems provide real-time information, daily news, and live updates, enhancing user satisfaction and engagement.

Furthermore, AI experts anticipate the growing role of virtual assistants, deep learning, and predictive modeling in the advertising industry, further transforming the social media sector.

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The predictive risk management segment was valued at USD 290.00 million in 2018 and showed a gradual increase during the forecast period.

Will Social Media landscape make North America the largest contributor to the Artificial Intelligence (AI) in Social Media Market?-

North America is estimated to contribute 41% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The social media landscape in North America is witnessing significant growth due to the increasing adoption of advanced technologies such as cognitive computing, image recognition, and artificial intelligence (AI) by various industries, including retail, manufacturing, and healthcare. The region's high internet penetration and the millennial generation's preference for social media networking make it an attractive market for brands that are conscious about their image and customer demographics. Advanced analytics derived from unstructured data, metadata, comments, vlogs, podcasts, video sharing sites, and photo sharing sites are crucial for marketing campaigns and public reviews. Telecom organizations are leveraging LongTerm Evolution (LTE) and AdvancedLTE to enhance their social media presence and engage with customers effectively. System failure and security concerns have led to the increased use of AI technologies for social listening and customer engagement. The growth of the market is further fueled by global conferences, product launches, and product exhibitions, where organizations use AI to host and promote events.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Dynamics

Artificial I

The AI in social media market is experiencing explosive growth, projected to reach $2.10 billion in 2025 and exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 28.04%. This expansion is fueled by several key drivers. Firstly, the increasing volume of social media data necessitates AI-powered tools for efficient analysis and insights extraction. Businesses leverage AI for improved customer experience management, targeted advertising campaigns, and enhanced brand monitoring. Secondly, advancements in machine learning, deep learning, and natural language processing (NLP) are continuously improving the accuracy and capabilities of AI solutions for social media. NLP enables sentiment analysis, trend identification, and real-time response to customer inquiries, while image recognition facilitates automated content moderation and brand asset tracking. Finally, the rising adoption of AI across diverse industries – from retail and e-commerce to BFSI and media – creates a wide spectrum of applications, driving market expansion. The market is segmented by technology (machine learning, deep learning, NLP), application (customer experience, sales & marketing, image recognition, predictive risk assessment), service (managed and professional services), organization size (SMEs and large enterprises), and end-user industry (retail, e-commerce, BFSI, media, education). The competitive landscape includes major technology giants like Google, Microsoft, Meta, and Amazon, alongside specialized social media analytics firms. While the market enjoys robust growth, challenges remain. Data privacy concerns and ethical considerations regarding AI usage on social media platforms need careful management. Furthermore, the integration of AI solutions into existing social media infrastructure can be complex and expensive, potentially acting as a restraint for smaller businesses. However, ongoing technological advancements and the increasing awareness of AI's value proposition are expected to overcome these hurdles, ensuring the continued expansion of the AI in social media market throughout the forecast period (2025-2033). The North American market currently holds a significant share, followed by Europe and Asia Pacific, with growth expected across all regions due to rising social media penetration and digital transformation initiatives. The dominance of large enterprises in AI adoption is likely to continue, though SMEs are gradually increasing their investment in these technologies. Recent developments include: October 2022: Meta announced a collaboration with Microsoft to provide consumers with unique experiences in various sectors, including gaming and the future of work. Microsoft will introduce Microsoft 365 apps to Meta Quest devices as part of this collaboration, allowing individuals to interact with content from productivity programs such as Excel, Word, Outlook, PowerPoint, and SharePoint within virtual reality (VR). It also wants to bring Windows 365 to devices so that users can stream their whole Windows experience, including their own apps, content, and preferences, through a Windows Cloud PC., October 2022: Adobe announced new AI features that maximize creativity and accuracy across Creative Cloud products, and Adobe Express, the industry's leading all-in-one tool, allows anyone to make professional-quality, unique content. In addition, Adobe stated its intention to assist creators by leveraging its Content Authenticity Initiative (CAI) to maintain transparency when using generative AI. New AI features in Adobe Express allow Quick Actions for users to immediately compress images and videos for quick social media sharing, discover appropriate color palettes for the maximum visual aspect, and instantly canvas over 22,000 Adobe Fonts for the ideal typeface.. Key drivers for this market are: Integration of Artificial Intelligence Technology with Social Media for Effective Advertising, Increase in User Engagement on Social Media by Using Smartphones; Rise in Use of AI in Understanding Market Trends and Gaining Competitive Edge. Potential restraints include: Integration of Artificial Intelligence Technology with Social Media for Effective Advertising, Increase in User Engagement on Social Media by Using Smartphones; Rise in Use of AI in Understanding Market Trends and Gaining Competitive Edge. Notable trends are: Retail Industry to Witness a Significant Growth.

The AI in Call Centers market offers a range of products and services that enhance call center operations. These include:Speech Recognition: Natural Language Processing (NLP) and Speech-to-Text (STT) solutions enable call centers to automate transcription, eliminate manual data entry, and improve efficiency.Chatbots & Virtual Assistants: Text-based and voice-based chatbots provide 24/7 customer support, handle routine inquiries, and offer personalized experiences.Robotic Process Automation (RPA): AI-powered bots automate repetitive tasks such as data extraction, order fulfillment, and account updates, freeing up human agents for more complex tasks.Predictive Analytics: AI algorithms analyze historical data to predict customer behavior, identify trends, and recommend optimal actions.Sentiment Analysis: AI tools detect customer emotions through voice or text, enabling call centers to respond with empathy and resolve issues effectively. Recent developments include: July 2022: The AI platform was launched by Laivly, a pioneer in AI and automation for contact centers. Laivly transforms real-time intelligence into real-time action that generates higher contact center productivity, boosts ROI, and provides a better customer experience. It is designed to swiftly and easily upgrade call centers at scale. On each agent's desktop, Laivly adds automation to help them complete jobs quickly, and the built-in AI shows the team the workflows of the most productive agents. The end result is a contact center that is quicker, wiser, more accurate, and more effective, allowing human agents to spend more time providing excellent customer experiences and less time battling technology., March 2022: In order to provide an out-of-the-box, complete solution for the contact center, Google launched the Cloud Contact Center AI Platform. It brings together sales, marketing, and support teams around data from the customer journey. It does this by combining the benefits of artificial intelligence (AI), cloud scalability, multi-experience capabilities, and close interaction with customer relationship management (CRM) platforms.. Key drivers for this market are: Increasing Usage of AI by Organizations in Pursuit of Enhanced Customer Support Service Offerings, Increasing Role of Social Media for Customer Engagement; The Exponential Growth of Data. Potential restraints include: Lack of Skilled Labor, Unsupervised Learning. Notable trends are: BFSI Vertical is Expected to Hold the Largest Market Size During Forecast Period.

Global Conversational AI market size was USD 10.1 Billion in 2022 and it is forecasted to reach USD 51.3 Billion by 2030. Conversational AI Industry's Compound Annual Growth Rate will be 22.6% from 2023 to 2030. Factors Impacting on Conversational AI Market

Conversational AI provides a convenient way for customers to get the support they need, without having to wait on hold or navigate through complex IVR systems which are anticipated drive market growth. Additionally, advances in natural language processing (NLP) and machine learning (ML) technologies have improved significantly in recent years, making it possible for conversational AI systems to understand and interpret human language which significantly drives the market growth.

Conversational AI Market Opportunities:

Conversational AI systems can help businesses engage with customers in a more personalized and meaningful way, providing a better customer experience and improving customer loyalty. Also, conversational AI systems can automate repetitive tasks and handle a large volume of customer interactions simultaneously, reducing the need for human customer service representatives. This will further open up opportunities for the market in the upcoming years.

Conversational AI Market Restraints:

The high cost of implementation and maintenance of conversational AI technology could be a significant barrier for many businesses, particularly small and medium-sized enterprises (SMEs), who may not have the resources or expertise to invest in this technology this factor may hamper the market growth. What is Conversational AI?

Conversational AI refers to the use of artificial intelligence technologies, such as natural language processing (NLP), machine learning (ML), and speech recognition, to create intelligent virtual agents or chatbots that can interact with humans through natural language conversations. Conversational AI systems can be used in various applications such as customer service, e-commerce, healthcare, education, and entertainment. These systems are designed to understand and interpret human language and respond appropriately in real-time.

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Artificial Intelligence In Marketing Size 2024-2028

The artificial intelligence in marketing size is forecast to increase by USD 41.02 billion, at a CAGR of 30.9% between 2023 and 2028.

The Artificial Intelligence (AI) market in marketing is experiencing significant growth, driven by the increasing adoption of cloud-based applications and services. This shift towards cloud solutions enables businesses to leverage AI technologies more efficiently and cost-effectively, enhancing their marketing capabilities. Furthermore, the ongoing digitalization and expanding internet penetration are fueling the demand for AI solutions in marketing, as companies seek to engage with customers more effectively in the digital space. However, the market's growth is not without challenges. The lack of skilled professionals poses a significant obstacle to wider AI adoption in marketing.
As AI applications become more complex, the need for specialized expertise in areas such as machine learning, data analytics, and programming grows. Companies must invest in upskilling their workforce or partner with external experts to overcome this challenge and fully capitalize on the opportunities presented by AI in marketing.

What will be the Size of the Artificial Intelligence In Marketing during the forecast period?

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Artificial intelligence (AI) continues to reshape marketing landscapes, with dynamic market activities unfolding across various sectors. Machine learning models optimize digital marketing strategies, enabling predictive analytics for marketing ROI and customer engagement. Brands build stronger connections through AI-powered personalization and sentiment analysis. Data privacy regulations necessitate transparency and accountability, influencing marketing technology stacks and Data Security measures. A/B testing and conversion rate optimization are enhanced through AI-driven insights, while marketing automation workflows streamline customer relationship management. Marketing analytics software and dashboards provide data-driven insights, enabling marketing budget allocation and multi-channel marketing strategies. Behavioral targeting and customer journey mapping are refined through AI, enhancing marketing attribution models and email marketing automation.

Virtual assistants and chatbots facilitate seamless customer experiences, while marketing automation platforms optimize search engine optimization, pay-per-click advertising, and social media advertising. Natural language processing and AI marketing consultants aid content marketing strategies, ensuring algorithmic bias and ethical AI considerations remain at the forefront. Marketing dynamics remain in a constant state of evolution, with AI-driven innovations continuing to transform the industry. Data Governance, marketing attribution models, and programmatic advertising are among the many areas where AI is making an impact. The ongoing integration of AI into marketing technologies and strategies ensures a continuously adaptive and effective marketing landscape.

How is this Artificial Intelligence Ining Industry segmented?

The artificial intelligence ining industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Deployment

  On-premises
  Cloud


Application

  Social Media Advertising
  Search Engine Marketing/ Search Advertising
  Virtual Assistant
  Content Curation
  Sales & Marketing Automation
  Analytics Platform
  Others


Technology

  Machine Learning
  Natural Language Processing
  Computer Vision
  Others


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    Japan
    Australia
    India


  South America

    Brazil
    Argentina


  Middle East and Africa

    UAE


  Rest of World (ROW)

By Deployment Insights

The on-premises segment is estimated to witness significant growth during the forecast period.

Artificial Intelligence (AI) is revolutionizing marketing, with machine learning models at its core. Brands are building stronger connections with consumers through AI-driven personalization and predictive analytics. A/B testing and marketing analytics software enable data-driven insights, while conversion rate optimization and marketing automation workflows streamline campaigns. Data privacy regulations ensure transparency and accountability, shaping marketing strategies. Behavioral targeting and sentiment analysis provide deeper customer understanding, enhancing customer engagement. Predictive analytics and marketing ROI are key performance indicators, driving marketing budget allo

The Customer Journey Analytics Market size was valued at USD 4.16 USD Billion in 2023 and is projected to reach USD 8.37 USD Billion by 2032, exhibiting a CAGR of 10.5 % during the forecast period. Customer journey analytics is the science of analysing customer behaviour across touchpoints and over time to measure the impact of customer behaviour on business outcomes. This approach continues to gain momentum as enterprises recognise the value of customer journeys to monitor customer experience performance and identify opportunities for improvement. Customer journey analytics often begins with a customer journey map, which is a visual representation of every step the customer goes through with your business. Then, it applies data on how your customer behaves throughout different phases of that map, to help you assess the effect your customers’ journey has on your business, or what’s holding customer’s back from completing that journey and purchasing a product. Often, machine learning, python, and various software tools like Adobe or Woopra are employed to fully measure customer interaction. Recent developments include: February 2024 – Accenture announced its plans to acquire GemSeek Consulting, a Bulgarian customer analytics firm, for an undisclosed amount. Post-acquisition, more than 170 employees of GemSeek will join Accenture., November 2023 – Monetate announced the availability of a journey analytics tool that helps create unique and meaningful digital connections between brands and their customers. The customer journey analytics tool is built for every new Monetate-launched experience for fast results and evaluation., September 2022 – Pegasystems Inc. introduced Pega Customer Data Connectors. This will help clients to connect with their existing customer data platforms. These connectors allow businesses to connect to platforms such as ZineOne, Celebrus, and Adobe., March 2022 – Adobe Systems, Inc. introduced a new feature in its customer journey analytics tool for tracking customers under Adobe’s Experience cloud. The tool will provide real-time data of the customer journey., January 2022 – IgniteTech engaged in an agreement to acquire assets of Bryter CX. Through this acquisition, the company aimed to expand its business capabilities to enhance customer experience across various industries., December 2021 – Pegasystems Inc. launched a new AI-powered customer journey tool to enhance traditional customer journey experience. The new solution uses propensity modeling and intelligent decision making to develop optimal customer interactions., June 2021 – Acxiom LLC engaged in a partnership with MullenLowe Profero to launch Fuse, a customer data platform for marketing. The platform will help brands to provide connected customer experience in real time.. Key drivers for this market are: Growing Demand to Provide Better Customer Experience to Drive Market Expansion. Potential restraints include: Increasing Cybersecurity Threats to Hamper Market Growth. Notable trends are: Rising Integration of Artificial Intelligence (AI) Technology with Analytics Solution to Augment Industry Growth.

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Artificial Intelligence Platforms Market Size 2024-2028

The artificial intelligence platforms market size is forecast to increase by USD 64.9 billion at a CAGR of 45.1% between 2023 and 2028. The market is experiencing significant growth due to the rising demand for AI-based solutions in various industries. Businesses are increasingly adopting AI technologies to automate processes, enhance productivity, and improve customer experiences. Another trend driving AI platforms market growth is the increasing interoperability among neural networks, enabling seamless data exchange and collaboration between different AI systems. However, the market also faces challenges such as the rise in data privacy issues and ethical concerns related to AI usage. As data becomes a valuable asset, ensuring its security and privacy is paramount for businesses implementing AI solutions. This dynamic market landscape underscores the critical role of artificial intelligence platforms in driving innovation and efficiency across various sectors such as education and telecommunications. Additionally, there is a need for clear regulations and guidelines to address ethical concerns and ensure transparency in AI decision-making. Overall, the market for artificial intelligence platforms is expected to continue its growth trajectory, driven by these trends and challenges.

What will be the Size of the Artificial Intelligence Platforms Market During the Forecast Period?

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Artificial Intelligence Platforms Market Segmentation

The AI platforms market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

Deployment Outlook 

  On-premise
  Cloud-based


Application Outlook

  Retail
  Banking
  Manufacturing
  Healthcare
  Others


Region Outlook

  North America

    U.S.
    Canada





  Europe

    U.K.
    Germany
    France
    Rest of Europe





  APAC

    China
    India





  Middle East & Africa

    Saudi Arabia
    South Africa
    Rest of the Middle East & Africa


  South America

    Chile
    Brazil
    Argentina

By Application Insights

The retail segment is estimated to witness significant growth during the forecast period. Artificial intelligence (AI) is revolutionizing various industries by enabling advanced data processing, pattern identification, and decision-making capabilities. In healthcare, AI is used for medical imaging analysis, drug discovery, and patient care. In the food and beverages sector, AI is employed for supply chain optimization and product innovation. Digital technologies, including AI software, are transforming banking by facilitating algorithmic trading, fraud detection, and credit risk assessment.

Industry adoption of AI is also prominent in business intelligence, customer experience, and operational efficiency. The emergence of technologies such as big data, IoT, customer relationship management (CRM), and workflow automation are accelerating technological transformations in the sector. AI is used to provide personalized recommendations, automate processes, and optimize workflows. Intelligent virtual assistants, chatbots, natural language processing, speech recognition, and conversational AI interactions are increasingly being used to enhance customer experience.

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The retail segment accounted for USD 662.60 million in 2018. Industry-specific AI Solutions are being developed for finance, where they are used for regulatory support, ethical considerations, data privacy, and security concerns. AI as a service (AIaaS) and cloud computing platforms are enabling businesses to leverage AI capabilities without having to build and maintain their own infrastructure.

Autonomous systems are being adopted for process optimization in manufacturing and logistics. In conclusion, AI is transforming industries by enabling advanced data processing, pattern identification, and decision-making capabilities. Its applications include healthcare, food and beverages, banking, business intelligence, customer experience, and operational efficiency. AI is also being used to develop industry-specific solutions for finance, and to enable autonomous systems for process optimization. Despite the numerous benefits, ethical considerations, data privacy, and security concerns remain key challenges.

Regional Analysis

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North America is estimated to contribute 66% to the growth of the global artificial intelligence platforms market during the market forecast period. Technavio's analysts have elaborately explained the regional trends an

The AI In Telecommunication Market size was valued at USD 1.99 billion in 2023 and is projected to reach USD 11.33 billion by 2032, exhibiting a CAGR of 28.2 % during the forecasts period. AI in the Telecommunication Market refers to the application of artificial intelligence technologies in the telecommunication business hence facilitating the improvement of the network, customer relations, and business operations. Some AI usage is predictive maintenance with networking analysis, virtual customer services, including those that are interactive, and marketing communications from customers’ behavior analysis. Applications of AI in telecommunications are also related to fraud detection, network security, and analysis in real-time for making decisions. Some of the current trends observed in the market are the use of smart virtual solutions primarily engaging an artificial intelligence approach in managing multiple cases related to customers, as well as using AI-driven networks endowed with higher dependability and performance rates.; 5G AI solutions are also gradually being designed and implemented to allow AI applications with extremely low latency solutions. Telecommunications are transforming into 5G, and AI keeps sustaining growth, augmentation of service delivery, and fine-tuning consumers’ experience worldwide. Recent developments include: In June 2023, Amdocs, an America-based software and services provider to communications and media companies, unveiled a telco generative AI framework called Amdocs amAIz. This innovative solution integrates carrier-grade architecture, harnessing open-source technology alongside large language AI models. By doing so, Amdocs amAIz establishes a robust foundation for global communications service providers, empowering them to unlock the vast capabilities of generative AI. , In February 2023, Bharti Airtel, an India-based telecommunication service provider, announced that it had built an AI solution in partnership with NVIDIA to improve the customer experience for its contact center from all inbound calls. , In September 2022, Amazon Web Services (AWS), an IT service management company, and SK Telecom, a telecommunications company, joined forces to develop a fresh range of computer vision services. This partnership simplifies and optimizes the process of constructing, utilizing, and expanding computer vision applications, ultimately boosting productivity, equipment maintenance, and facility safety for customers while reducing costs. , In November 2022, American Tower Corporation's African subsidiary revealed a strategic alliance with PowerX. The objective is to introduce PowerX's artificial intelligence (AI) solutions in the telecommunications sector of Africa to enhance energy efficiency and environmental advantages by optimizing energy consumption at tower locations. , In July 2022, Actifai, a software as a service provider, partnered with CSG, a customer engagement company. The collaboration aims to revolutionize customer acquisition for cable and telecommunications service providers by introducing an AI-powered offer recommendation solution. By seamlessly integrating Actifai's artificial intelligence software, ACP customers and their care agents can enhance average revenue per user (ARPU), achieve higher sales conversions, and improve customer sales and support experience. This partnership aims to leverage Actifai's AI software to boost average revenue per user. .

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Artificial Intelligence (AI) Market In Retail Sector Size 2024-2028

The artificial intelligence (ai) market in retail sector size is forecast to increase by USD 42.22 billion, at a CAGR of 42% between 2023 and 2028.

The Artificial Intelligence (AI) market in retail is experiencing significant growth, fueled by escalating investments and research and development in AI startups. This trend is driven by the increasing adoption of AI technologies in various retail applications, particularly in e-commerce, where AI is being used for personalized product recommendations, fraud detection, and customer service. However, the deployment of AI in retail comes with challenges. One of the most pressing issues is privacy concerns. Retailers must address these challenges by implementing robust data security measures and transparent communication with customers regarding the collection and use of their data.
Effective management of these challenges will enable retailers to capitalize on the vast opportunities presented by AI, enhancing customer experiences, improving operational efficiency, and driving innovation in the retail sector.

What will be the Size of the Artificial Intelligence (AI) Market In Retail Sector during the forecast period?

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The retail sector continues to witness the integration of artificial intelligence (AI) technologies, revolutionizing various aspects of business operations. From promotion optimization to customer service automation, AI applications span across numerous retail functions. Image recognition and machine learning algorithms enhance operational efficiency by automating tasks such as inventory management and data mining. Sales forecasting and demand prediction are further advanced through AI-powered recommendations and real-time analytics. Facial recognition and customer segmentation enable personalized shopping experiences, while virtual assistants and recommendation systems streamline the customer journey. AI's role extends to supply chain management, cost reduction, and targeted advertising through retail analytics and predictive analytics.

Moreover, AI's integration into omni-channel retail enhances conversion rates, customer satisfaction, and loyalty programs. Automated checkout and process automation contribute to efficiency gains, while deep learning and marketing automation optimize pricing and UX. Data security and decision support systems ensure data-driven insights for business intelligence and sentiment analysis. Fraud detection and predictive modeling further strengthen retail operations, with smart shelves and business intelligence systems providing valuable insights for retailers. AI's continuous evolution in the retail sector is transforming the industry, offering endless opportunities for innovation and growth.

How is this Artificial Intelligence (AI) In Retail Sector Industry segmented?

The artificial intelligence (ai) in retail sector industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

Application

  Sales and marketing
  In-store
  PPP
  Logistics management


Geography

  North America

    US
    Canada


  Europe

    UK


  APAC

    China
    Japan


  Rest of World (ROW)

By Application Insights

The sales and marketing segment is estimated to witness significant growth during the forecast period.

In the retail sector, artificial intelligence (AI) is revolutionizing sales and marketing functions. Customer Relationship Management (CRM) strategies are enhanced through AI, allowing businesses to understand customer interaction histories and tailor sales efforts accordingly. Operational efficiency is a priority, with AI-based chatbots and virtual assistants driving customer engagement and freeing up human resources. Machine learning algorithms, image recognition, and predictive analytics are key technologies, powering personalized shopping experiences, targeted advertising, and real-time inventory management. Cloud computing enables seamless data access for AI applications, from demand forecasting to sentiment analysis and fraud detection. AI-powered recommendation systems and supply chain management optimize sales conversion and reduce costs.

Businesses are embracing omni-channel retail, integrating AI into various touchpoints, from mobile commerce to in-store analytics. Deep learning and computer vision technologies further enhance the customer experience, with applications in price optimization, shelf optimization, and predictive modeling. Data security and decision support systems are essential considerations, ensuring customer satisfactio

According to a 2022 survey, the industry of life sciences and biotechnology was the most dependent on artificial intelligence, with six in ten service professionals using AI tools in their work. Customer service agents working in the automotive and professional service industries followed with 50 percent each.

The Enterprise AI market is experiencing explosive growth, projected to reach a substantial size driven by the increasing adoption of AI across various industries. The 52.17% CAGR from 2019-2024 indicates a significant market expansion, fueled by several key factors. Businesses are increasingly leveraging AI-powered solutions for automation, predictive analytics, and improved decision-making. The cloud-based deployment model is gaining traction due to its scalability, cost-effectiveness, and accessibility, contributing to the market's rapid expansion. Major industries like manufacturing, automotive, BFSI, and IT & Telecommunications are early adopters, utilizing AI for process optimization, risk management, and customer experience enhancement. The competitive landscape is characterized by a mix of established tech giants (Amazon Web Services, IBM, Microsoft, Google) and specialized AI companies (AiCure, Sentient Technologies), fostering innovation and driving down costs. Despite the strong growth trajectory, certain challenges exist. Data security and privacy concerns, the need for skilled AI professionals, and the high initial investment costs can act as restraints. However, ongoing technological advancements, decreasing hardware costs, and growing awareness of AI's benefits are likely to mitigate these challenges. The market segmentation reveals a strong preference for cloud-based solutions, with the North American market currently holding a significant share due to early adoption and technological maturity. However, Asia and Europe are projected to witness substantial growth in the coming years driven by increasing digitalization initiatives and government support for AI development. The forecast period of 2025-2033 promises continued expansion, with specific segments like AI-powered customer service and predictive maintenance expected to demonstrate particularly high growth rates. This comprehensive report offers a detailed analysis of the Enterprise AI market, providing invaluable insights into its growth trajectory, key players, and future prospects. Covering the period from 2019 to 2033, with a base year of 2025, this study uses rigorous research methodologies to forecast market value in millions and provide actionable intelligence for businesses operating in this dynamic sector. The report segments the market by type (solution, service), deployment (on-premise, cloud), and end-user industry (manufacturing, automotive, BFSI, IT & telecommunication, media & advertising, others), offering a granular view of the competitive landscape. Recent developments include: September 2022: SAP updated the core of its SAP SuccessFactors Human Experience Management (HMX) Suite to give businesses a more effective means of implementing an integrated talent development strategy and building a workforce prepared for the future. To give companies a better understanding of the capabilities within their workforce and actionable talent intelligence to align their people with the organization's needs, the most recent developments to the SAP SuccessFactors HMX Suite combine data, machine learning, and artificial intelligence (AI)., February 2022: Enterprise artificial intelligence (AI) solutions startup, Mozn raised USD 10 million in a Series A funding round. Mozn provides enterprises make better mission-critical decisions through AI products and resolutions that leverage its proprietary state-of-the-art Arabic natural language understanding (NLU) platform and its cutting-edge risk and fraud engine.. Key drivers for this market are: Increasing Demand for Automation and AI-based Solutions, Increasing Need to Analyze Exponentially Growing Data Sets. Potential restraints include: Sluggish Adoption Rates. Notable trends are: Cloud Deployment is Expected to Experience a Significant Market Growth.

AI in Telecommunication Market size was valued at USD 1419.42 Million in 2023 and is projected to reach USD 22029.38 Million by 2031, growing at a CAGR of 45.1% from 2024 to 2031.

Key Market Drivers Exponential Growth in Data Traffic: The rapid increase in data traffic is driving the demand for AI-powered telecom solutions to manage and optimize network operations. According to Cisco's Annual Internet Report (2018-2023), global internet traffic is predicted to increase to 4.8 zettabytes per year by 2022, from 1.5 zettabytes in 2017. This corresponds to a compound annual growth rate of 26%. Also, the survey forecasts that by 2023, there will be 3.6 networked devices per person worldwide, up from 2.4 in 2018. This rapid increase of data and connected devices needs AI-driven network management and optimization solutions. Rising Demand for Enhanced Customer Experience: Telecommunications companies are increasingly using AI to improve customer service and satisfaction. According to research from the International Telecommunication Union (ITU), AI-powered chatbots and virtual assistants can handle up to 80% of regular customer support queries without human participation. According to the same paper, adopting AI in customer service can lower call volume by up to 50% while also reducing call handling time by 40%. These improvements in productivity and customer experience are pushing AI in Telecommunication Market. Need for Network Security and Fraud Detection: As cyber threats become more sophisticated, artificial intelligence (AI) is increasingly being used to improve network security and detect fraud in telecommunications. The Federal Communications Commission (FCC) claims that Americans lost more than $1.9 billion in 2019 due to telecommunications fraud and identity theft. AI-powered systems can evaluate massive volumes of data in real time, detecting irregularities and potential security concerns. According to a study published in IEEE Communications Surveys & Tutorials, AI-based intrusion detection systems detect up to 99% of certain types of network intrusions, outperforming traditional rule-based systems.

The AIaaS market offers a range of products, each catering to specific needs and use cases:AI-powered customer service platforms: These platforms enable businesses to automate customer interactions, provide personalized support, and improve customer satisfaction.Predictive analytics solutions: AI-powered predictive models help businesses anticipate future trends and make more informed decisions.Cognitive computing platforms: These platforms allow businesses to develop and deploy AI applications that can learn, reason, and make decisions.Computer vision systems: Computer vision AI models can analyze images and videos to extract insights and automate tasks.Natural language processing (NLP) services: NLP AI models can process and understand human language, enabling businesses to automate content creation, language translation, and sentiment analysis. Recent developments include: February 14, 2024: IBM announced a new suite of AIaaS offerings focused on automation. This includes tools for streamlining workflows, improving decision-making, and enhancing customer experiences. This highlights the growing trend of AI being used for practical business applications., January 25, 2024: The World Economic Forum published a report on the responsible use of AI in business. This report emphasizes the importance of ethical considerations and transparency in developing and deploying AIaaS solutions., Google released a free artificial intelligence program on Thursday, February 20, 2024, allowing individuals to rely on technology rather than their own minds to write, comprehend what they read, and handle a range of other tasks in their life. Google is planning to replace the Bard chatbot it introduced a year ago with ChatGPT, the chatbot released by Microsoft-backed startup OpenAI in late 2022. The Gemini app is called after an AI project that was unveiled late last year. Google is launching the standalone Gemini app for Android-powered smartphones right now., By 2023, Capgemini has observed an increase in client demand and focus on generative AI in recent months. In light of this, the Group is introducing a generative AI portfolio of services today that includes everything from strategy formulation to the actual creation and large-scale use of generative AI.. Key drivers for this market are: Increasing investment by key players in the development of artificial intelligence technology, increment in number of start-ups; increasing demand for AI enabled APIs & SDKs. Potential restraints include: Lack of technical expertise.