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Synthetic Data Generation Market Size 2024-2028

The synthetic data generation market size is forecast to increase by USD 2.88 billion at a CAGR of 60.02% between 2023 and 2028.

The global synthetic data generation market is expanding steadily, driven by the growing need for privacy-compliant data solutions and advancements in AI technology. Key factors include the increasing demand for data to train machine learning models, particularly in industries like healthcare services and finance where privacy regulations are strict and the use of predictive analytics is critical, and the use of generative AI and machine learning algorithms, which create high-quality synthetic datasets that mimic real-world data without compromising security.
This report provides a detailed analysis of the global synthetic data generation market, covering market size, growth forecasts, and key segments such as agent-based modeling and data synthesis. It offers practical insights for business strategy, technology adoption, and compliance planning. A significant trend highlighted is the rise of synthetic data in AI training, enabling faster and more ethical development of models. One major challenge addressed is the difficulty in ensuring data quality, as poorly generated synthetic data can lead to inaccurate outcomes.
For businesses aiming to stay competitive in a data-driven global landscape, this report delivers essential data and strategies to leverage synthetic data trends and address quality challenges, ensuring they remain leaders in innovation while meeting regulatory demands

What will be the Size of the Market During the Forecast Period?

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Synthetic data generation offers a more time-efficient solution compared to traditional methods of data collection and labeling, making it an attractive option for businesses looking to accelerate their AI and machine learning projects. The market represents a promising opportunity for organizations seeking to overcome the challenges of data scarcity and privacy concerns while maintaining data diversity and improving the efficiency of their artificial intelligence and machine learning initiatives. By leveraging this technology, technology decision-makers can drive innovation and gain a competitive edge in their respective industries.

Market Segmentation

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.

End-user

  Healthcare and life sciences
  Retail and e-commerce
  Transportation and logistics
  IT and telecommunication
  BFSI and others


Type

  Agent-based modelling
  Direct modelling


Data

  Tabular Data
  Text Data
  Image & Video Data
  Others


Offering Band

  Fully Synthetic Data
  Partially Synthetic Data
  Hybrid Synthetic Data


Application

  Data Protection
  Data Sharing
  Predictive Analytics
  Natural Language Processing
  Computer Vision Algorithms
  Others


Geography

  North America

    US
    Canada
    Mexico


  Europe

    Germany
    UK
    France
    Italy


  APAC

    China
    Japan
    India


  Middle East and Africa



  South America

By End-user Insights

The healthcare and life sciences segment is estimated to witness significant growth during the forecast period. In the thriving healthcare and life sciences sector, synthetic data generation is gaining significant traction as a cost-effective and time-efficient alternative to utilizing real-world data. This market segment's rapid expansion is driven by the increasing demand for data-driven insights and the importance of safeguarding sensitive information. One noteworthy application of synthetic data generation is in the realm of computer vision, specifically with geospatial imagery and medical imaging.

For instance, in healthcare, synthetic data can be generated to replicate medical imaging, such as MRI scans and X-rays, for research and machine learning model development without compromising patient privacy. Similarly, in the field of physical security, synthetic data can be employed to enhance autonomous vehicle simulation, ensuring optimal performance and safety without the need for real-world data. By generating artificial datasets, organizations can diversify their data sources and improve the overall quality and accuracy of their machine learning models.

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The healthcare and life sciences segment was valued at USD 12.60 million in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 36% 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 m

The global synthetic data market size is projected to grow from USD 0.4 billion in the current year to USD 19.22 billion by 2035, representing a CAGR of 42.14%, during the forecast period till 2035

According to a survey of artificial intelligence (AI) companies in South Korea carried out in 2023, nearly 66 percent of the data used when developing AI products and services was private data. On the other hand, public data comprised around 34 percent.

BackgroundClinical data is instrumental to medical research, machine learning (ML) model development, and advancing surgical care, but access is often constrained by privacy regulations and missing data. Synthetic data offers a promising solution to preserve privacy while enabling broader data access. Recent advances in large language models (LLMs) provide an opportunity to generate synthetic data with reduced reliance on domain expertise, computational resources, and pre-training.ObjectiveThis study aims to assess the feasibility of generating realistic tabular clinical data with OpenAI’s GPT-4o using zero-shot prompting, and evaluate the fidelity of LLM-generated data by comparing its statistical properties to the Vital Signs DataBase (VitalDB), a real-world open-source perioperative dataset.MethodsIn Phase 1, GPT-4o was prompted to generate a dataset with qualitative descriptions of 13 clinical parameters. The resultant data was assessed for general errors, plausibility of outputs, and cross-verification of related parameters. In Phase 2, GPT-4o was prompted to generate a dataset using descriptive statistics of the VitalDB dataset. Fidelity was assessed using two-sample t-tests, two-sample proportion tests, and 95% confidence interval (CI) overlap.ResultsIn Phase 1, GPT-4o generated a complete and structured dataset comprising 6,166 case files. The dataset was plausible in range and correctly calculated body mass index for all case files based on respective heights and weights. Statistical comparison between the LLM-generated datasets and VitalDB revealed that Phase 2 data achieved significant fidelity. Phase 2 data demonstrated statistical similarity in 12/13 (92.31%) parameters, whereby no statistically significant differences were observed in 6/6 (100.0%) categorical/binary and 6/7 (85.71%) continuous parameters. Overlap of 95% CIs were observed in 6/7 (85.71%) continuous parameters.ConclusionZero-shot prompting with GPT-4o can generate realistic tabular synthetic datasets, which can replicate key statistical properties of real-world perioperative data. This study highlights the potential of LLMs as a novel and accessible modality for synthetic data generation, which may address critical barriers in clinical data access and eliminate the need for technical expertise, extensive computational resources, and pre-training. Further research is warranted to enhance fidelity and investigate the use of LLMs to amplify and augment datasets, preserve multivariate relationships, and train robust ML models.

The Synthetic Data Generation Marketsize was valued at USD 288.5 USD Million in 2023 and is projected to reach USD 1920.28 USD Million by 2032, exhibiting a CAGR of 31.1 % during the forecast period.Synthetic data generation stands for the generation of fake datasets that resemble real datasets with reference to their data distribution and patterns. It refers to the process of creating synthetic data points utilizing algorithms or models instead of conducting observations or surveys. There is one of its core advantages: it can maintain the statistical characteristics of the original data and remove the privacy risk of using real data. Further, with synthetic data, there is no limitation to how much data can be created, and hence, it can be used for extensive testing and training of machine learning models, unlike the case with conventional data, which may be highly regulated or limited in availability. It also helps in the generation of datasets that are comprehensive and include many examples of specific situations or contexts that may occur in practice for improving the AI system’s performance. The use of SDG significantly shortens the process of the development cycle, requiring less time and effort for data collection as well as annotation. It basically allows researchers and developers to be highly efficient in their discovery and development in specific domains like healthcare, finance, etc. Key drivers for this market are: Growing Demand for Data Privacy and Security to Fuel Market Growth. Potential restraints include: Lack of Data Accuracy and Realism Hinders Market Growth. Notable trends are: Growing Implementation of Touch-based and Voice-based Infotainment Systems to Increase Adoption of Intelligent Cars.

According to a global survey among marketing professionals in January 2025, approximately 17 percent reported using artificial intelligence (AI) extensively in their data-driven marketing efforts. Around 39 percent said they integrated AI in select areas, whereas 26 percent were exploring AI, but have not implemented the technology. Some 13 percent reported not having plans to use AI.

The U.S. AI Training Dataset Market size was valued at USD 590.4 million in 2023 and is projected to reach USD 1880.70 million by 2032, exhibiting a CAGR of 18.0 % during the forecasts period. The U. S. AI training dataset market deals with the generation, selection, and organization of datasets used in training artificial intelligence. These datasets contain the requisite information that the machine learning algorithms need to infer and learn from. Conducts include the advancement and improvement of AI solutions in different fields of business like transport, medical analysis, computing language, and money related measurements. The applications include training the models for activities such as image classification, predictive modeling, and natural language interface. Other emerging trends are the change in direction of more and better-quality, various and annotated data for the improvement of model efficiency, synthetic data generation for data shortage, and data confidentiality and ethical issues in dataset management. Furthermore, due to arising technologies in artificial intelligence and machine learning, there is a noticeable development in building and using the datasets. Recent developments include: In February 2024, Google struck a deal worth USD 60 million per year with Reddit that will give the former real-time access to the latter’s data and use Google AI to enhance Reddit’s search capabilities. , In February 2024, Microsoft announced around USD 2.1 billion investment in Mistral AI to expedite the growth and deployment of large language models. The U.S. giant is expected to underpin Mistral AI with Azure AI supercomputing infrastructure to provide top-notch scale and performance for AI training and inference workloads. .

Ainnotate’s proprietary dataset generation methodology based on large scale generative modelling and Domain randomization provides data that is well balanced with consistent sampling, accommodating rare events, so that it can enable superior simulation and training of your models.

Ainnotate currently provides synthetic datasets in the following domains and use cases.

Internal Services - Visa application, Passport validation, License validation, Birth certificates Financial Services - Bank checks, Bank statements, Pay slips, Invoices, Tax forms, Insurance claims and Mortgage/Loan forms Healthcare - Medical Id cards

As of 2023, customer data was the leading source of information used to train artificial intelligence (AI) models in South Korea, with nearly 70 percent of surveyed companies answering that way. About 62 percent responded to use existing data within the company when training their AI model.

This dataset is a list of Department of Transportation (DOT) Artificial Intelligence (AI) use cases. Artificial intelligence (AI) promises to drive the growth of the United States economy and improve the quality of life of all Americans. Pursuant to Section 5 of Executive Order (EO) 13960, "Promoting the Use of Trustworthy Artificial Intelligence in the Federal Government," Federal agencies are required to inventory their AI use cases and share their inventories with other government agencies and the public. In accordance with the requirements of EO 13960, this spreadsheet provides the mechanism for federal agencies to create their inaugural AI use case inventories. https://www.federalregister.gov/documents/2020/12/08/2020-27065/promoting-the-use-of-trustworthy-artificial-intelligence-in-the-federal-government

According to Cognitive Market Research, the global Artificial Intelligence in Retail market size is USD 4951.2 million in 2023and will expand at a compound annual growth rate (CAGR) of 39.50% from 2023 to 2030.

Enhanced customer personalization to provide viable market output
Demand for online remains higher in Artificial Intelligence in the Retail market.
The machine learning and deep learning category held the highest Artificial Intelligence in Retail market revenue share in 2023.
North American Artificial Intelligence In Retail will continue to lead, whereas the Asia-Pacific Artificial Intelligence In Retail market will experience the most substantial growth until 2030.

Enhanced Customer Personalization to Provide Viable Market Output

A primary driver of Artificial Intelligence in the Retail market is the pursuit of enhanced customer personalization. A.I. algorithms analyze vast datasets of customer behaviors, preferences, and purchase history to deliver highly personalized shopping experiences. Retailers leverage this insight to offer tailored product recommendations, targeted marketing campaigns, and personalized promotions. The drive for superior customer personalization not only enhances customer satisfaction but also increases engagement and boosts sales. This focus on individualized interactions through A.I. applications is a key driver shaping the dynamic landscape of A.I. in the retail market.

January 2023 - Microsoft and digital start-up AiFi worked together to offer Smart Store Analytics. It is a cloud-based tracking solution that helps merchants with operational and shopper insights for intelligent, cashierless stores.

Source-techcrunch.com/2023/01/10/aifi-microsoft-smart-store-analytics/

Improved Operational Efficiency to Propel Market Growth

Another pivotal driver is the quest for improved operational efficiency within the retail sector. A.I. technologies streamline various aspects of retail operations, from inventory management and demand forecasting to supply chain optimization and cashier-less checkout systems. By automating routine tasks and leveraging predictive analytics, retailers can enhance efficiency, reduce costs, and minimize errors. The pursuit of improved operational efficiency is a key motivator for retailers to invest in AI solutions, enabling them to stay competitive, adapt to dynamic market conditions, and meet the evolving demands of modern consumers in the highly competitive artificial intelligence (AI) retail market.

January 2023 - The EY Retail Intelligence solution, which is based on Microsoft Cloud, was introduced by the Fintech business EY to give customers a safe and efficient shopping experience. In order to deliver insightful information, this solution makes use of Microsoft Cloud for Retail and its technologies, which include image recognition, analytics, and artificial intelligence (A.I.).

Source-www.ey.com/en_gl/news/2023/01/ey-announces-launch-of-retail-solution-that-builds-on-the-microsoft-cloud-to-help-achieve-seamless-consumer-shopping-experiences

Market Dynamics of the Artificial Intelligence in the Retail market

Data Security Concerns to Restrict Market Growth

A prominent restraint in Artificial Intelligence in the Retail market is the pervasive concern over data security. As retailers increasingly rely on A.I. to process vast amounts of customer data for personalized experiences, there is a growing apprehension regarding the protection of sensitive information. The potential for data breaches and cyberattacks poses a significant challenge, as retailers must navigate the delicate balance between utilizing customer data for AI-driven initiatives and safeguarding it against potential security threats. Addressing these concerns is crucial to building and maintaining consumer trust in A.I. applications within the retail sector.

Impact of COVID–19 on the Artificial Intelligence in the Retail market

The COVID-19 pandemic significantly influenced artificial intelligence in the retail market, accelerating the adoption of A.I. technologies across the industry. With lockdowns, social distancing measures, and a surge in online shopping, retailers turned to A.I. to navigate the challenges posed by the pandemic. AI-powered solutions played a crucial role in optimizing supply chain management, predicting shifts in consumer behavior, and enhancing e-commerce experiences. Retailers lever...

The quality of AI-generated images has rapidly increased, leading to concerns of authenticity and trustworthiness.

CIFAKE is a dataset that contains 60,000 synthetically-generated images and 60,000 real images (collected from CIFAR-10). Can computer vision techniques be used to detect when an image is real or has been generated by AI?

Dataset details The dataset contains two classes - REAL and FAKE. For REAL, we collected the images from Krizhevsky & Hinton's CIFAR-10 dataset For the FAKE images, we generated the equivalent of CIFAR-10 with Stable Diffusion version 1.4 There are 100,000 images for training (50k per class) and 20,000 for testing (10k per class)

References If you use this dataset, you must cite the following sources

Krizhevsky, A., & Hinton, G. (2009). Learning multiple layers of features from tiny images.

Bird, J.J., Lotfi, A. (2023). CIFAKE: Image Classification and Explainable Identification of AI-Generated Synthetic Images. arXiv preprint arXiv:2303.14126.

Real images are from Krizhevsky & Hinton (2009), fake images are from Bird & Lotfi (2023). The Bird & Lotfi study is a preprint currently available on ArXiv and this description will be updated when the paper is published.

License This dataset is published under the same MIT license as CIFAR-10:

Permission is hereby granted, free of charge, to any person obtaining a copy of this software and associated documentation files (the "Software"), to deal in the Software without restriction, including without limitation the rights to use, copy, modify, merge, publish, distribute, sublicense, and/or sell copies of the Software, and to permit persons to whom the Software is furnished to do so, subject to the following conditions:

The above copyright notice and this permission notice shall be included in all copies or substantial portions of the Software.

THE SOFTWARE IS PROVIDED "AS IS", WITHOUT WARRANTY OF ANY KIND, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND NONINFRINGEMENT. IN NO EVENT SHALL THE AUTHORS OR COPYRIGHT HOLDERS BE LIABLE FOR ANY CLAIM, DAMAGES OR OTHER LIABILITY, WHETHER IN AN ACTION OF CONTRACT, TORT OR OTHERWISE, ARISING FROM, OUT OF OR IN CONNECTION WITH THE SOFTWARE OR THE USE OR OTHER DEALINGS IN THE SOFTWARE.

The Synthetic Data Generation Market is estimated to reach USD 6,637.9 Mn By 2034, Riding on a Strong 35.9% CAGR during forecast period.

Data for Artificial Intelligence: Data-Centric AI for Transportation: Work Zone Use Case proposes a data integration pipeline that enhances the utilization of work zone and traffic data from diversified platforms and introduces a novel deep learning model to predict the traffic speed and traffic collision likelihood during planned work zone events. This dataset is raw Maryland roadway incident data

As of 2023, over 90 percent of the respondents claim their companies must invest more into reassuring customers their data is being used for intended and legitimate purposes only throughout the use of artificial intelligence (AI).

The data presented in this data project were collected in the context of the research project “AI TRACE - Synaesthetic Engagement of Artificial Intelligence with Digital Arts and its Audience”. The research project was supported by the Hellenic Foundation for Research and Innovation (H.F.R.I.)under the “2nd Call for H.F.R.I. Research Projects to support Post-Doctoral Researchers” (Project Number: 782). AI TRACE aimed at developing an ethically compliant behavioural analysis and visualization tool in the form of a metalanguage that can be used in the museum sector to track, analyse and present data collected from exhibition visitors in the form of a personalized 3D digital object. AI TRACE showcases Artificial Intelligence subsystems. The data presented in this data project were collected during the Preparatory Activity event that took place in October 2021 during the 17th edition of the Athens Digital Arts Festival (ADAF). The research activity was hosted at the new premises of the Museum of Modern Greek Culture, at a specially designed exhibition space. The purpose of this activity was to collect data for methodological testing and for feeding the AI subsystem. The data files derived from the research activities and provided here are:

1. Data that was gathered from a pre-visit questionnaire which was completed by 231 survey participants. The questionnaire explores visitors' motivations for visiting and preferences of a digital arts exhibition, their relationship with digital arts, their mood and attitude before the visit, and certain demographic characteristics. For the purpose of the research, visitors of the Athens Digital Arts Festival who voluntarily participated in the survey were approached. The dataset can be used to analyse various characteristics of museum visitors, such as their motivation to visit, their interests and their relationship with art, in relation to their personal characteristics (gender, age, status).
2. Timing-and-tracking (T&T) data -more specifically time spent in each exhibit and trajectory- which were extracted from video recordings in the exhibition space. Regular festival visitors were recruited at the entrance of the exhibition area by the research assistants. Participants (N=273) were asked to sign an informed consent form before filling the online anonymous questionnaire and entering the exhibition space. A custom-made software was used to blur their faces during video recording for data anonymization purposes. The tracking data were extracted via BORIS (Behavioral Observation Research Interactive Software), an open-source event logging software for video/audio coding and live observations that is developed by the University of Torino. The datasets can be used to analyse visitors’ behavior in relation to demographic characteristics, their motivations, interests and relation to arts, as well as their pre-visit mood and attitudes.
3. The data file containing both questionnaire data and timing-and-tracking (T&T) data for a subset of the sample (N=223). This data can be used in combination to analyse the behaviour of museum visitors in relation to their demographic characteristics, motivations for visiting, their preferences and their relationship with digital arts, as well as in relation to their mood and attitude before the visit.

BackgroundAdvances in artificial intelligence (AI) technologies, together with the availability of big data in society, creates uncertainties about how these developments will affect healthcare systems worldwide. Compassion is essential for high-quality healthcare and research shows how prosocial caring behaviors benefit human health and societies. However, the possible association between AI technologies and compassion is under conceptualized and underexplored.ObjectivesThe aim of this scoping review is to provide a comprehensive depth and a balanced perspective of the emerging topic of AI technologies and compassion, to inform future research and practice. The review questions were: How is compassion discussed in relation to AI technologies in healthcare? How are AI technologies being used to enhance compassion in healthcare? What are the gaps in current knowledge and unexplored potential? What are the key areas where AI technologies could support compassion in healthcare?Materials and methodsA systematic scoping review following five steps of Joanna Briggs Institute methodology. Presentation of the scoping review conforms with PRISMA-ScR (Preferred Reporting Items for Systematic reviews and Meta-Analyses extension for Scoping Reviews). Eligibility criteria were defined according to 3 concept constructs (AI technologies, compassion, healthcare) developed from the literature and informed by medical subject headings (MeSH) and key words for the electronic searches. Sources of evidence were Web of Science and PubMed databases, articles published in English language 2011–2022. Articles were screened by title/abstract using inclusion/exclusion criteria. Data extracted (author, date of publication, type of article, aim/context of healthcare, key relevant findings, country) was charted using data tables. Thematic analysis used an inductive-deductive approach to generate code categories from the review questions and the data. A multidisciplinary team assessed themes for resonance and relevance to research and practice.ResultsSearches identified 3,124 articles. A total of 197 were included after screening. The number of articles has increased over 10 years (2011, n = 1 to 2021, n = 47 and from Jan–Aug 2022 n = 35 articles). Overarching themes related to the review questions were: (1) Developments and debates (7 themes) Concerns about AI ethics, healthcare jobs, and loss of empathy; Human-centered design of AI technologies for healthcare; Optimistic speculation AI technologies will address care gaps; Interrogation of what it means to be human and to care; Recognition of future potential for patient monitoring, virtual proximity, and access to healthcare; Calls for curricula development and healthcare professional education; Implementation of AI applications to enhance health and wellbeing of the healthcare workforce. (2) How AI technologies enhance compassion (10 themes) Empathetic awareness; Empathetic response and relational behavior; Communication skills; Health coaching; Therapeutic interventions; Moral development learning; Clinical knowledge and clinical assessment; Healthcare quality assessment; Therapeutic bond and therapeutic alliance; Providing health information and advice. (3) Gaps in knowledge (4 themes) Educational effectiveness of AI-assisted learning; Patient diversity and AI technologies; Implementation of AI technologies in education and practice settings; Safety and clinical effectiveness of AI technologies. (4) Key areas for development (3 themes) Enriching education, learning and clinical practice; Extending healing spaces; Enhancing healing relationships.ConclusionThere is an association between AI technologies and compassion in healthcare and interest in this association has grown internationally over the last decade. In a range of healthcare contexts, AI technologies are being used to enhance empathetic awareness; empathetic response and relational behavior; communication skills; health coaching; therapeutic interventions; moral development learning; clinical knowledge and clinical assessment; healthcare quality assessment; therapeutic bond and therapeutic alliance; and to provide health information and advice. The findings inform a reconceptualization of compassion as a human-AI system of intelligent caring comprising six elements: (1) Awareness of suffering (e.g., pain, distress, risk, disadvantage); (2) Understanding the suffering (significance, context, rights, responsibilities etc.); (3) Connecting with the suffering (e.g., verbal, physical, signs and symbols); (4) Making a judgment about the suffering (the need to act); (5) Responding with an intention to alleviate the suffering; (6) Attention to the effect and outcomes of the response. These elements can operate at an individual (human or machine) and collective systems level (healthcare organizations or systems) as a cyclical system to alleviate different types of suffering. New and novel approaches to human-AI intelligent caring could enrich education, learning, and clinical practice; extend healing spaces; and enhance healing relationships.ImplicationsIn a complex adaptive system such as healthcare, human-AI intelligent caring will need to be implemented, not as an ideology, but through strategic choices, incentives, regulation, professional education, and training, as well as through joined up thinking about human-AI intelligent caring. Research funders can encourage research and development into the topic of AI technologies and compassion as a system of human-AI intelligent caring. Educators, technologists, and health professionals can inform themselves about the system of human-AI intelligent caring.

Executive Summary: Artificial intelligence (AI) is a transformative technology that holds promise for tremendous societal and economic benefit. AI has the potential to revolutionize how we live, work, learn, discover, and communicate. AI research can further our national priorities, including increased economic prosperity, improved educational opportunities and quality of life, and enhanced national and homeland security. Because of these potential benefits, the U.S. government has invested in AI research for many years. Yet, as with any significant technology in which the Federal government has interest, there are not only tremendous opportunities but also a number of considerations that must be taken into account in guiding the overall direction of Federally-funded R&D in AI. On May 3, 2016,the Administration announced the formation of a new NSTC Subcommittee on Machine Learning and Artificial intelligence, to help coordinate Federal activity in AI.1 This Subcommittee, on June 15, 2016, directed the Subcommittee on Networking and Information Technology Research and Development (NITRD) to create a National Artificial Intelligence Research and Development Strategic Plan. A NITRD Task Force on Artificial Intelligence was then formed to define the Federal strategic priorities for AI R&D, with particular attention on areas that industry is unlikely to address. This National Artificial Intelligence R&D Strategic Plan establishes a set of objectives for Federallyfunded AI research, both research occurring within the government as well as Federally-funded research occurring outside of government, such as in academia. The ultimate goal of this research is to produce new AI knowledge and technologies that provide a range of positive benefits to society, while minimizing the negative impacts. To achieve this goal, this AI R&D Strategic Plan identifies the following priorities for Federally-funded AI research: Strategy 1: Make long-term investments in AI research. Prioritize investments in the next generation of AI that will drive discovery and insight and enable the United States to remain a world leader in AI. Strategy 2: Develop effective methods for human-AI collaboration. Rather than replace humans, most AI systems will collaborate with humans to achieve optimal performance. Research is needed to create effective interactions between humans and AI systems. Strategy 3: Understand and address the ethical, legal, and societal implications of AI. We expect AI technologies to behave according to the formal and informal norms to which we hold our fellow humans. Research is needed to understand the ethical, legal, and social implications of AI, and to develop methods for designing AI systems that align with ethical, legal, and societal goals. Strategy 4: Ensure the safety and security of AI systems. Before AI systems are in widespread use, assurance is needed that the systems will operate safely and securely, in a controlled, well-defined, and well-understood manner. Further progress in research is needed to address this challenge of creating AI systems that are reliable, dependable, and trustworthy. Strategy 5: Develop shared public datasets and environments for AI training and testing. The depth, quality, and accuracy of training datasets and resources significantly affect AI performance. Researchers need to develop high quality datasets and environments and enable responsible access to high-quality datasets as well as to testing and training resources. Strategy 6: Measure and evaluate AI technologies through standards and benchmarks. . Essential to advancements in AI are standards, benchmarks, testbeds, and community engagement that guide and evaluate progress in AI. Additional research is needed to develop a broad spectrum of evaluative techniques. Strategy 7: Better understand the national AI R&D workforce needs. Advances in AI will require a strong community of AI researchers. An improved understanding of current and future R&D workforce demands in AI is needed to help ensure that sufficient AI experts are available to address the strategic R&D areas outlined in this plan. The AI R&D Strategic Plan closes with two recommendations: Recommendation 1: Develop an AI R&D implementation framework to identify S&T opportunities and support effective coordination of AI R&D investments, consistent with Strategies 1-6 of this plan. Recommendation 2: Study the national landscape for creating and sustaining a healthy AI R&D workforce, consistent with Strategy 7 of this plan.

During a 2022 survey conducted in the United States, it was found that 18 percent of respondents thought that artificial intelligence will lead to there being many fewer jobs. By contrast, 25 percent of respondents aged between 30 and 44 years stated that AI will create many more jobs.

Artificial intelligence

Artificial intelligence (AI) is the ability of a computer or machine to mimic the competencies of the human mind, learning from previous experiences to understand and respond to language, decisions, and problems. Particularly, a large amount of data is often used to train AI into developing algorithms and skills. The AI ecosystem consists of machine learning (ML), robotics, artificial neural networks, and natural language processing (NLP). Nowadays, tech and telecom, financial services, healthcare, and pharmaceutical industries are prominent for AI adoption in companies.

AI companies and startups

More and more companies and startups are engaging in the artificial intelligence market, which is forecast to grow rapidly in the coming years. Examples of big tech firms are IBM, Microsoft, Baidu, and Tencent, with the last owning the highest number of AI and ML patent families, amounting to over nine thousand. Moreover, driven by the excitement for this new technology and by the large investments in it, the number of startups involved in the industry around the world has grown in recent years. For instance, in the United States, the New York company UiPath was the top-funded AI startup.

The Artificial Intelligence Software market is valued at USD 80.26 Billion in 2022 and will be USD 612.36 Billion by 2030 with a CAGR of 29.06% during the forecast period. Factors Affecting the Artificial Intelligence Software Market

Increasing demand for IoT solutions boosts Artificial Intelligence Software market growth:

Software that uses artificial intelligence is increasingly being used in industries from healthcare to defense, as it is one of the most effective ways to eliminate the need for human labor. To compete in the artificial intelligence software market, other well-known companies are also releasing new AI software at the same time. For instance, Amazon announced the release of a new artificial intelligence tool called “Create with Alexa '' in November 2022 to produce stories for children. This brand-new artificial intelligence program creates briefings that include animation, music, and pictures.

Increasing demand for AI in the healthcare sector

The health industry's application of artificial intelligence software improved the standard of living for workers. In the coming years, the market for artificial intelligence software will probably be driven by rising demand from the healthcare industry. Technology advancements also offer profitable chances for market expansion.

Restraint for Artificial Intelligence Software Market

The difficulty associated adoption of AI tools can hamper market growth:

The market's limiting factors include the absence of Al talent in emerging nations, difficulties with the all-at-once adoption of Al tools, and the black box effect. To combat these factors and end the "black box effect," businesses have improved their solutions with more moral and explicable Al models. The black box effect causes the Al algorithms to occasionally provide results that are difficult to verify. These algorithms' results could be biased in a subtle way that is hard to detect. Therefore, the results are not adequately explained. As a result, consumers frequently embrace Al tools without feeling secure or trusted

Impact of the COVID-19 Pandemic on the Artificial Intelligence Software Market:

The pandemic crisis altered the way businesses functioned and made them more complex. Businesses moved their business operations to the cloud to adapt pt this development., machine learning, and other cutting-edge technologies saw a spike in use as a result. One of the first industries to use this technology, which increased the precision and effectiveness of diagnoses, treatments, and predictions, was the healthcare industry. For instance, according to the study report from January 2022, researchers at Indiana University and the Regenstrief Institute discovered that machine learning (ML) models could aid in public health decision-making during the pandemic. What is Artificial Intelligence Software?

A mainframe program called artificial intelligence (Al) software imitates human behavior by gaining knowledge from various insights and data patterns. Artificial intelligence platforms, chatbots, deep learning software, and machine learning software are a few examples of different types of Al software. Additional features of Al software include voice and speech recognition, machine learning, and virtual assistants. To automate company procedures and organize data for better data insights, various sorts of enterprises utilize artificial intelligence software which is machine learning incorporated. In addition, the market for Al software is anticipated to increase exponentially in the future due to rising technological advancements.