Artificial Intelligence Software Market to Reach $89.8 Billion in Annual Worldwide Revenue by 2025 Omdia

Compared to a few years ago, the artificial intelligence (AI) market is starting to solidify around real-world applications with the pace of change being faster than it ever has been before, as startups and technology providers rush to create platforms and targeted niche solutions for solving specific enterprise problems. According to a new report from Tractica, the rising tide of AI adoption across multiple industries will drive significant growth during the next decade, and the market intelligence firm forecasts that annual worldwide AI software revenue will increase from $3.2 billion in 2016 in 2016 to $89.8 billion by 2025. This forecast is a significant upgrade of Tractica's previous projection for AI market revenue, which was published in 2Q17, due to an improved outlook for a number of specific use cases across multiple industries. "Artificial intelligence is already key to how consumer internet companies operate today, allowing them to roll out hyper-personalized services by following an'AI first' strategy," says research director Aditya Kaul. "The rest of the market in the enterprise and government sectors is still catching up on adopting AI and has yet to fully understand its value, including the breadth and depth of use cases, the technology choices surrounding AI, and the implementation strategies."