In 2025, the biggest barrier to AI adoption was the lack of skilled professionals, cited by 50 percent of businesses. Around 43 percent pointed to a lack of vision among managers and leaders, while 29 percent struggled with the high costs of AI products and services.

The adoption rate of artificial intelligence (AI) is expected to grow in companies operating in supply chains and manufacturing industries from 2022 to 2025. In 2022 over a third of executives expected their companies to have a widescale adoption of AI in their companies.

In a 2025 survey, employees under 35 report the highest AI use at ** percent and trust at ** percent, while those over 55 report ** percent use and ** percent trust.

In 2025, the majority of C-suite and business leaders, about 31 percent, in the United States expect their companies to be at the phase of their adoption journey with generative artificial intelligence where the return of investment is already established. Only 19 percent expect they will still be at the strategic planning phase.

In a 2025 survey, AI use stands at ** percent among high-income workers but falls to ** percent among low-income workers. Trust mirrors this gap with ** percent versus ** percent respectively.

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Artificial Intelligence (AI) In Games Market Size 2025-2029

The artificial intelligence (ai) in games market size is forecast to increase by USD 27.47 billion, at a CAGR of 42.3% between 2024 and 2029.

The market is experiencing significant growth, driven by the increasing adoption of Augmented Reality (AR) and Virtual Reality (VR) games. These immersive technologies are revolutionizing the gaming industry by providing more realistic and interactive experiences, thereby fueling the demand for advanced AI capabilities. AI algorithms enable more intelligent and responsive non-player characters, dynamic game environments, and personalized user experiences. However, the market faces challenges, primarily due to the latency issues in between games. As AI-driven games become more complex and data-intensive, ensuring seamless and low-latency interactions between players and the game environment becomes crucial. Addressing these latency issues will require continuous advancements in AI technologies, network infrastructure, and cloud gaming solutions.
Companies seeking to capitalize on the market opportunities must focus on developing AI solutions that deliver high-performance, low-latency experiences while ensuring data security and privacy. Effective collaboration between game developers, technology providers, and network infrastructure companies will be essential to address these challenges and drive the growth of the AI in Games market.

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

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The market continues to evolve, integrating advanced technologies such as e-sports integration, player behavior analysis, game analytics, game engine optimization, computer vision, UI, QA, game balance, game AI, character AI, social features, gameplay mechanics, cloud gaming, game physics engines, in-app purchases, game localization, multiplayer networking, performance benchmarking, streaming integration, pathfinding algorithms, procedural generation, UX, subscription models, competitive gaming, machine learning models, neural networks, advertising integration, and audio design. These technologies are not static entities but rather dynamic components that unfold and intertwine, shaping the market's intricate landscape. E-sports integration and player behavior analysis enable game developers to create more engaging experiences, while game analytics offers valuable insights into player preferences and trends.

Game engine optimization and computer vision enhance game performance and visual quality, respectively. UI and QA ensure seamless user experiences and bug-free gameplay, respectively. Game balance and character AI add depth and complexity to game mechanics. Machine learning models and neural networks facilitate intelligent decision-making, while social features and gameplay mechanics foster community engagement. Cloud gaming and streaming integration expand accessibility, and game physics engines and in-app purchases generate revenue. Game localization and multiplayer networking cater to diverse player bases, and performance benchmarking ensures optimal game performance. The ongoing interplay of these technologies shapes the market's dynamics, with new applications and innovations continually emerging.

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

The artificial intelligence (ai) in games industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  AI enabled platforms
  AI enabled games


Technology

  Machine learning
  Natural language processing
  Computer vision
  Robotics


Game

  Action
  Adventure
  Casual
  Racing
  Simulation
  Sports
  Strategy


Application

  Gameplay Optimization
  Character Behavior Generation
  Level Design
  Player Engagement


End-User

  Developers
  Publishers
  Players


Platform Type

  Console
  PC
  Mobile
  Cloud


Geography

  North America

    US
    Mexico


  Europe

    France
    Germany
    UK


  Middle East and Africa

    UAE


  APAC

    Australia
    China
    India
    Japan
    South Korea


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The ai enabled platforms segment is estimated to witness significant growth during the forecast period.

In the dynamic gaming industry, Artificial Intelligence (AI) is revolutionizing game development and player experience. AI technologies, including deep learning, reinforcement learning, and machine learning models, are integrated into various aspects of game creation. These tools enhance

The insurance sector witnessed a dramatic acceleration in AI implementation during 2025, with adoption rates jumping to ** percent - a substantial increase from just ** percent in 2024. Simultaneously, the proportion of insurers actively considering AI deployment decreased from ** percent in 2021 to ** percent in 2025. This shift does not represent declining interest, but rather indicates that many previously "considering" companies have moved into active implementation.

Global Generative AI In Creative Industries market size is expected to reach $12.61 billion by 2029 at 32.5%, segmented as by text-to-image generation, ai-powered image generation from text prompts, text-to-image synthesis for art and design

The AI-Powered Supply Chain Planning Software market is experiencing rapid growth, driven by the increasing demand for efficiency and optimization within supply chain management. As businesses strive to streamline operations and enhance decision-making processes, the adoption of AI technology in supply chain plannin

Global Artificial Intelligence Software As A Service (SaaS) market size is expected to reach $1240.38 billion by 2029 at 38.3%, the surge in cloud adoption fuels the artificial intelligence software as a service (saas) market

The AI Writing Assistants market is experiencing a transformative wave as businesses and individuals alike recognize the value of these advanced tools in enhancing productivity and creativity. As industry adoption rises, AI writing assistants, powered by sophisticated algorithms and natural language processing, are

The Cognitive Technology Solutions Spending market is rapidly evolving, reflecting the increasing adoption of artificial intelligence and machine learning across various industries. As businesses strive to leverage data-driven insights for competitive advantage, cognitive technologies have emerged as essential tools

5G and artificial intelligence are what many executives expect to increase the adoption of immersive technologies in businesses over the next five years, according to 63 percent and 54 percent respectively of respondents in a 2020 survey amongst AR/VR experts and company executives.

In a 2025 survey, India and Nigeria lead the results, as countries of emerging economy that use AI on a semiregular or regular basis at ** percent. In comparison to Singapore, a country of advanced economy, which reached ** percent.

In 2024, artificial intelligence adoption has experienced a remarkable surge across global organizations. The percentage of companies integrating AI into at least one business function has dramatically increased to ** percent, representing a substantial leap from ** percent in the previous year. Even more striking is the exponential growth of generative AI, which has been embraced by ** percent of organizations worldwide. This represents an impressive increase of over ** percentage points, highlighting the technology's swift transition from an emerging trend to a mainstream business tool.

The market for artificial intelligence grew beyond *** billion U.S. dollars in 2025, a considerable jump of nearly ** billion compared to 2023. This staggering growth is expected to continue, with the market racing past the trillion U.S. dollar mark in 2031. AI demands data Data management remains the most difficult task of AI-related infrastructure. This challenge takes many forms for AI companies. Some require more specific data, while others have difficulty maintaining and organizing the data their enterprise already possesses. Large international bodies like the EU, the US, and China all have limitations on how much data can be stored outside their borders. Together, these bodies pose significant challenges to data-hungry AI companies. AI could boost productivity growth Both in productivity and labor changes, the U.S. is likely to be heavily impacted by the adoption of AI. This impact need not be purely negative. Labor rotation, if handled correctly, can swiftly move workers to more productive and value-added industries rather than simple manual labor ones. In turn, these industry shifts will lead to a more productive economy. Indeed, AI could boost U.S. labor productivity growth over a 10-year period. This, of course, depends on various factors, such as how powerful the next generation of AI is, the difficulty of tasks it will be able to perform, and the number of workers displaced.

According to a study conducted in late 2024, consumer goods and retail executives said they were planning to increase their AI budget in 2025. Spending outside of the IT department would add up to 2.28 percent of the annual revenue and was expected to increase by 52 percent compared to the previous year.

Artificial intelligence (AI) is rapidly transforming customer experience (CX) strategies, with **** of decision makers leveraging AI to analyze open feedback and create content in 2024. This widespread adoption reflects a growing trust in AI capabilities, as ** percent of global survey respondents expressed confidence in AI's ability to replace human interaction for assembling and presenting product information before purchases. Adoption challenges and consumer perceptions Despite the enthusiasm for AI in CX, companies face significant hurdles in implementation. Over ** percent of organizations cite a lack of specialized knowledge and expertise as major barriers to adopting AI. This skills gap may contribute to mixed consumer reactions, with ** percent of U.S. shoppers reporting improved experiences due to AI, while ** percent claim worse experiences. As businesses navigate these challenges, addressing the expertise shortage will be crucial for successful AI integration. Future trends in AI for customer service Looking ahead, AI applications in customer service are set to expand rapidly. By 2025, the vast majority of contact centers plan to implement generative AI, with only *** percent having no plans to adopt the technology. However, the trust in AI-powered customer service has still room for improvement, as less than ** percent of consumers trust AI agents handling customer service.

Among recent major technologies in the United States, generative artificial intelligence (AI) had a much steeper leap in users in year two from year one than the other major technologies. Nearly ten times the amount of people had used generative AI within a year of its making, compared to three times the amount of tablet users and barely twice the amount of smartphone users. This leap has not remained steady, however, and tablets had more users in year four since its release than is expected of generative AI.

U.S. citizens are skeptical

Adults in the United States were somewhat concerned with the development and growth of generative AI in 2023. While most were somewhat concerned another third was mostly concerned, and relatively few individuals were excited. This is understandable with the rapid growth of new technology, as change and unknown factors always cause concern among the wider population.

Investment in tech going strong

In the U.S. investment in new technologies and generative AI were among the highest in enterprises. These topped investments in hiring, cost-cutting, and outsourcing. This high rate of investment in new technologies and AI is likely driven by the whole-of-enterprise effect that these trends might have on companies.

As of 2023, nearly 92 percent of digital leaders globally stated that their companies adopted cloud technology either on small or large scale. Big data/ analytics were the second most popular adopted technology with around 61 percent of respondents reporting the same. Artificial intelligence/ machine learning At the same time, 26 percent of respondents were considering using Artificial intelligence (AI) / machine learning (ML) technology, while 24 percent said that their companies were piloting the implementation AI/ML technology.

What is cloud computing?  

Cloud computing refers to the use of networks of remote servers accessed over the internet to store, manage, and process data. It offers customers access to a wide range of technologies while lowering costs and reducing the need for technical expertise. The cloud service market is divided into three primary service models encompassing infrastructure, platforms, and software. Customers are able to choose between private, public, or hybrid cloud deployment depending on their business needs and security concerns.

SaaS: the most widely adopted cloud solutions    

In line with increases in companies’ adoption of cloud computing technologies, the worldwide revenue generated from these technologies has increased rapidly in recent years. Software as a Service (SaaS) is the largest segment of the global cloud computing market with revenues forecast to be around 197 billion U.S. dollars in 2023. Popular applications of SaaS include customer relationship management and enterprise resource planning software.