Artificial Intelligence Market Size Worth $733.7 Billion By 2027

The global artificial intelligence market size was valued at USD 39.9 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 42.2% from 2020 to 2027.

The global Artificial Intelligence Market size is expected to reach USD 733.7 billion by 2027, expanding at a CAGR of 42.2%, according to a new report by Grand View Research, Inc. Artificial intelligence (AI) denotes the concept and development of computing systems capable of performing tasks customarily requiring human assistance, such as decision-making, speech recognition, visual perception, and language translation. AI uses layers of algorithms to understand human speech, visually recognize objects, and process information. These algorithms are used for data processing, calculation, and automated reasoning.

Artificial intelligence researchers are continuously improving algorithms for various aspects, as conventional algorithms have drawbacks regarding accuracy and efficiency. These advancements have led manufacturers and technology developers to focus on developing standard algorithms. Recently, several developments have been carried out for enhancing artificial intelligence algorithms. For instance, in May 2020, International Business Machines Corporation announced a wide range of new AI-powered services and capabilities, namely IBM Watson AIOps, for enterprise automation. These services are designed to help automate the IT infrastructures and make them more resilient and cost reduction.

The COVID-19 pandemic has emerged as an opportunity for AI-enabled computer systems to fight against the epidemic as several tech companies are working on prevent, mitigate, and contain the virus. For instance, LeewayHertz, a U.S.-based custom software development company, is offering technology solutions using AI tools and techniques, including the Face Mask Detection System, to identify individuals without a mask and the Human Presence System to monitor patients remotely. Besides, Voxel51 Inc., a U.S.-based artificial intelligence start-up, has developed Voxel51 PDI (Physical Distancing Index) to measure the impact of the global pandemic on social behavior across the world. AI-powered computer platforms or solutions are being used to fight against COVID - 19 in numerous applications, such as early alerts, tracking and prediction, data dashboards, diagnoses and prognosis, treatments and cures, and maintaining social control. Data dashboards that can visualize the pandemic have emerged with the need for coronavirus tracking and prediction. For instance, Microsoft Corporation’s Bing’s AI tracker gives a global overview of the pandemic's current statistics.

Artificial Intelligence is becoming vital to big data as the technology allows the extraction of high-level and complex abstractions through a hierarchical learning process. The need for mining and extraction of significant patterns from high-volume information is driving the growth of artificial intelligence in big data analytics. Furthermore, the technology helps in overcoming challenges associated with big data analytics, such as the trustworthiness of data analysis, format variation of raw information, highly distributed input sources, and imbalanced input data. Another challenge includes a lack of efficient storage and poor retrieval of information as it is collected in large quantities and made available across numerous domains. These challenges are overcome by using semantic indexing as it facilitates comprehension and knowledge discovery.

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Artificial Intelligence Market Report Highlights

• The advent of big data is expected to be traction of the growth of the AI market as a large volume of data is needed to be captured, stored, and analyzed
• The increasing demand for image processing and identification is expected to drive industry growth 
• North America dominated the market and accounted for over 42.4% share of global revenue in 2019
• One of the significant concerns restraining industry growth is the need for a large amount of data to train AI systems for character and image recognition.