International. The global AI software market will expand to $98.8 billion by 2025, increasing by a factor of six from $16.4 billion in 2019, despite the various effects of the COVID-19 pandemic on different industries, according to Omdia.
The artificial intelligence (AI) software market has experienced tremendous growth in recent years. While the COVID-19 pandemic has lowered growth forecasts for the market, its impact is uneven across all industrial sectors. While some industries are shrinking, such as energy, oil, gas, and mining, some markets, such as healthcare, are accelerating AI adoption.
Omdia has developed four market scenarios based on the duration of the pandemic and the severity of its economic effect. Omdia's moderate scenario presented in this press release foresees continued double-digit growth ahead, although the cumulative market size for 2019-2025 will shrink by 22 percent compared to pre-COVID forecasts.
End users focus on what AI software can do. As a result, Omdia has created a taxonomy of 340 AI use cases across 23 industry sectors that captures the AI-related software opportunity. Use cases explain how and why customers are implementing AI. They help to distinguish the reality of the market, i.e. the actual implementation and use, from the exaggeration of the market. The use cases driving the AI software market include voice/voice recognition, video surveillance, customer service and virtual digital marketing assistants (VDAs), network/IT and supply chain operations monitoring and management, and inventory management.
"The economic effects of the COVID-19 pandemic have widened the dichotomy between early ADOPTERS OF AI (the 'AIs owns') and the end followers, the 'AIs don't have,'" said Omdia senior analyst Neil Dunay. Industries that have pioneered AI implementation and have the largest investments in AI are likely to continue to invest in what they see as proven and indispensable technology to reduce costs, generate revenue and improve the customer experience."
Source: Omdia.
