July 16, 2024
Enterprise Artificial Intelligence (AI) Market

Enterprise Artificial Intelligence (AI) Market is Estimated To Witness High Growth Owing To Increasing Adoption of AI Solutions by Businesses

The Enterprise Artificial Intelligence (AI) Market is estimated to be valued at US$ 21.48 Bn in 2023 and is expected to exhibit a CAGR of 34.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Enterprise artificial intelligence (AI) refers to artificial intelligence technologies and solutions adopted by businesses and organisations to streamline various operations and processes. AI solutions help automate repetitive and manual tasks, thereby improving productivity and efficiency. They also enable businesses to gain deeper insights into customer behaviour and needs by analysing large volumes of data. This helps businesses deliver personalized experiences and improved customer service.

Market key trends:

One of the major trends driving the growth of enterprise artificial intelligence market is the increasing adoption of AI solutions by businesses to improve operational efficiency and reduce costs. Many businesses across industries such as manufacturing, healthcare, retail, BFSI etc. are implementing AI-based solutions into their existing IT infrastructure and workflows. For instance, AI-powered chatbots and virtual assistants are helping businesses provide 24/7 customer support. AI is also finding applications in predictive maintenance, supply chain management, fraud detection, and cybersecurity, thereby helping businesses optimize processes. This growing adoption of AI solutions by businesses is expected to significantly drive the demand over the forecast period.

Porter’s Analysis

Threat of new entrants: The enterprise artificial intelligence (AI) market requires significant R&D investments and technical capabilities which pose high barriers for new players to enter. Bargaining power of buyers: Large enterprises have significant bargaining power due to their higher procurement volume and ability to demand customized AI solutions at competitive prices. Bargaining power of suppliers: Major AI technology players like Alphabet, IBM, Microsoft have strong bargaining power due to their proprietary technologies and intellectual property. Threat of new substitutes: AI technologies are emerging rapidly with substitutes like machine learning, deep learning, and predictive analytics posing threat of substitution. Competitive rivalry: The market is highly competitive with focus on continuous innovation to gain competitive advantage.

SWOT Analysis

Strengths: AI enhances operational efficiency, improves decision making, and allows automation of routine tasks. It also helps gain actionable insights from large volumes of data.
Weaknesses: Implementation challenges, data privacy & security issues, lack of skilled workforce restrict wider adoption of AI technologies. High initial investment and integration costs are also weaknesses.
Opportunities: Growing digitization and use of analytics across industries offers significant growth opportunities. Expanding applications in healthcare, manufacturing, and transportation present lucrative opportunities.
Threats: Bias in algorithms, job losses due to automation, and regulatory uncertainties around data privacy pose major threats to the market.

Key Takeaways

The Global Enterprise Artificial Intelligence (AI) Market Growth is expected to witness high, exhibiting CAGR of 34.% over the forecast period, due to increasing demand for AI-based solutions across industries for enhancing process efficiencies and productivity. North America dominated the market in 2023, with the US accounting for the highest share, owing to strong technology adoption and presence of major players in the region. China is projected to grow at the fastest pace during the forecast period.

Key players operating in the enterprise artificial intelligence (AI) market are Alphabet Inc., Apple Inc., Amazon Web Services, Inc., International Business Machines Corporation, IPsoft Inc., MicroStrategy Incorporated, NVIDIA Corporation, SAP SE, Verint Systems Inc., Wipro Limited, and Others. The players focus on developing advanced AI technologies and investing in R&D to gain competitive advantage. Strategic partnerships, mergers, acquisitions, and collaborations are among other strategies adopted by the key players to fortify their market presence.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it