By 2025, the artificial intelligence (AI) software market will expand from 2021's $33 billion to $64 billion, according to a new report. And cybersecurity is the fastest-growing category of AI spend, experiencing a rise in spending of 22.3% compound annual growth rate (CAGR). "Cybersecurity is the fastest AI software growth category, with a focus on the real-time monitoring of and response to attacks," the report states. The next two categories, customer and human capital management (22%) and process optimization, knowledge, and data intelligence (18.3%), also have cybersecurity elements, so the impact on security tool makers could be even more significant. This comports with the emphasis companies have placed on their AI-enhanced software and services.

The AI software forecast from Gartner is based on use cases, measuring the amount of potential business value, timing of business value and risk to project how use cases will grow. According to the global research firm and consultancy, the top five use case categories for AI software spending in 2022 will be knowledge management; virtual assistants; autonomous vehicles; digital workplace; and crowdsourced data. The AI software market encompasses applications with AI embedded in them, such as computer vision software, as well as software that is used to build AI systems. "The AI software market is picking up speed, but its long-term trajectory will depend on enterprises advancing their AI maturity," said Alys Woodward, senior research director at Gartner. "Successful AI business outcomes will depend on the careful selection of use cases. Use cases that deliver significant business value, yet can be scaled to reduce risk, are critical to demonstrate the impact of AI investment to business stakeholders."

How big is the market for artificial intelligence software? In our new report, "The AI Software Market Will Grow To $37 Billion Globally By 2025," Forrester forecasts that the size of the AI software market will approach $37 billion by 2025. That's a large number but still smaller than many investors and other analysts have projected. We believe our projection is more realistic, however, for two reasons. First, most business applications are adding AI functions without monetizing them.