80+ AI Statistics: Market Size, Growth & Business Use (2021)

by Josh Howarth - August 17, 2021

Computer systems that reproduce human-like behaviors sound eerily similar to the plotlines of dystopian science fiction novels. Contrary to the sensational predictions of science fiction novelists, artificial intelligence solutions have proven to be practical and increasingly commonplace, such as Apple Inc.'s Siri and Amazon's Alexa.

As global artificial intelligence systems become more advanced and improve in aptitude, the workforce wonders if outsourcing jobs to AI solutions will become the new normal.

Studying artificial intelligence statistics and AI trends can help predict the future of artificial intelligence technologies. By reviewing facts about artificial intelligence, you can decide if these business strategies produce viable options for increasing market revenue or share more similarities with a cyborg steampunk fantasy novel.

Contents

Top 10 AI Statistics (Editor's Picks)

  1. The global artificial intelligence market size will grow from $29.86 billion in 2020 to $299.64 billion in 2026.
  2. The U.S. artificial intelligence market size forecast in 2026 is $299.64 billion.
  3. The artificial intelligence market size will expand at a Compound Annual Growth Rate (CAGR) of 40.2% from 2021 to 2028.
  4. The artificial intelligence market forecasts a 19.3% growth rate in 2021.
  5. Statistics predict that the artificial intelligence market size will continue growing by at least 120% annually.
  6. 83% of companies share that having access to AI is a top priority in their business plans.
  7. One of the top market players, Netflix, uses automated personalized recommendations to make $1 billion annually.
  8. 48% of businesses use deep learning, machine learning, natural language processing, and data analysis to utilize big data effectively.
  9. 38% of medical providers in the healthcare industry use computers as their diagnosis assistants.
  10. Marketing and sales departments prioritize global artificial intelligence and machine learning for market revenue success 40% more than other industry departments.

Artificial Intelligence Market Size

AI Global Market Size Today

You can expect the global artificial intelligence market size to grow from $29.86 billion in 2020 to $299.64 billion by 2026. For the forecast period of 2021-2026, the AI market size is expected to increase by 35.6% (CAGR).

Artificial intelligence software market revenue worldwide 2018-2025

revenue-from-ai-market-min.png

Revenues from the artificial intelligence (AI) software market worldwide from 2018 to 2025 (in billion U.S. dollars)

Year

Revenue in USD (billions)

2018

10.1

2019*

14.69

2020*

22.59

2021*

34.87

2022*

51.27

2023*

70.94

2024*

94.41

2025*

126

Key Statistics:

  • Data indicates that global spending on artificial intelligence services and cognitive systems could reach $57.6 billion in 2021.
  • By 2030, China will account for 26.1% of the global AI market share.
  • 84% of global organizations believe that these new technologies will give them a competitive edge.

Sources: GlobeNewswire, Statista, IDC, Statista

AI Market Size in the US

In 2021, business analysts estimate that the U.S. artificial intelligence market size is worth about $21.9 billion. Growth projections predict that the U.S. AI market size will increase as dependency on human intelligence decreases.

Key Statistics:

  • The U.S. artificial intelligence market size value in 2020 was $29.86 billion.
  • The U.S. artificial intelligence market size forecast in 2026 is $299.64 billion.
  • The predicted CAGR for the forecast period of 2021-2026 is 35.5%.

Sources: PR Newswire, GlobeNewsWire

AI Adoption: Artificial Intelligence Growth

How Fast Is the Growth of Artificial Intelligence?

The booming growth of artificial intelligence seems like it won’t be slowing down anytime soon. You can expect global artificial intelligence to expand at a CAGR of 40.2% from 2021 to 2028.

usage-of-ai-min.png

Key Statistics:

  • The number of businesses using AI services grew by 270% from 2015 to 2019.
  • 15% of enterprises have access to AI services, and 31% of businesses share that AI growth is on their agenda within 12 months.
  • In 2020, 39% of large companies planned to invest in AI services.

Sources: Grand View Research, Gartner, Adobe, Adobe

AI Market Forecast Stats

In 2020, the AI services market was worth $19.4 billion in revenue. In 2021, the market is forecast to grow at 19.3%, with a CAGR of 21% over the next five years.

ai-market-growth-min.png

Key Statistics:

  • The AI market forecast predicts $119 billion of annual revenue by 2025.
  • Wearable artificial intelligence, such as the Apple Watch, is forecast to expand the global wearable artificial intelligence market size to $180 billion by 2025.
  • The global artificial intelligence market forecast that artificial intelligence technology could contribute $15.7 trillion of revenue by 2030.

Sources: IDC, Statista, Global Market Insights, PwC,

Artificial Intelligence Future Predictions

Artificial intelligence predictions reveal a lucrative time ahead for the artificial intelligence market. In 2019, statistics predicted the market size would grow by 154% and continue growing by at least 120% annually.

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Artificial intelligence software market growth forecast worldwide 2019-2025

Year

Growth

2019

54%

2020

54%

2021

54%

2022

47%

2023

38%

2024

33%

2025

26%

Key Statistics:

  • Artificial intelligence future trends predict global AI chip revenues reaching $83.25 billion by 2027.
  • By 2025, AI trends predict that 97 million people will be necessary to fill the work demands of the surging industry.

Sources: Statista, Statista, We Forum

How Businesses Adopt Artificial Intelligence

AI Adoption in Business

A whopping 83% of companies share that using AI in their business strategies is a top priority. If you have automated emails in your inbox and a pleasant-sounding robot recording on your voicemail, you have experience with AI in business tactics.

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How far along companies are with AI

Percentage AI Usage
7% Don’t use AI currently but are looking into it
14% Have tested a few proofs of concepts with limited success
21% We have a few promising proofs of concepts and are looking to scale
25% We have processes that are fully enabled by AI with widespread adoption
33% We have started implementing with limited AI use cases.

Key Statistics:

  • 80% of retail executives expect their businesses to adopt artificial intelligence automation by 2025.
  • 86% of CEOs agree that AI and business go hand in hand since artificial intelligence is mainstream technology in their offices.
  • Artificial intelligence has the potential to boost employee productivity by 40% in 2035.

Sources: Forbes, Analytics Insight, Forbes, CNBC, PWC

Companies Benefiting From AI

When you launch Netflix, you benefit from many personalized recommendations, all perfectly tailored to your interests by AI technology. Tech companies investing in AI significantly increase their revenue since their algorithms keep the consumer constantly returning for more.

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Share of questions answered correctly by selected digital assistants as of 2019, by category

Type of question Google Assistant Siri Alexa
Local

93%

89%

85%

Commerce

92%

68%

71%

Navigation

98%

86%

72%

Information

96%

76%

93%

Command

86%

93%

69%

Key Statistics:

  • Netflix's recommendations technology is worth $1 billion of revenue annually.
  • 52% of telecommunications organizations utilize chatbots to increase their overall productivity.
  • Google Assistant outranks its voice assistant competitors, such as Apple Inc.'s Siri and Microsoft's Cortana, with its accuracy record of up to 98% in navigation.

Sources: Business Insider, Gartner, Statista

AI Application & Uses in Business Statistics

AI applications in business include providing personalized product recommendations to people via consumer behavior forecasting and targeted advertising. Pop-up marketing ads and the chatbot in the right-hand corner of your screen, which will not stop asking you if you have questions about the interior design pieces in your online shopping cart, are both examples of AI operations.

AI Press release-min.png

Key Statistics:

  • 40% of organizations claim that customer experience is the number one reason they utilize artificial intelligence solutions since automation translates to less waiting time for customers.
  • 20% of businesses assert that automating tasks, such as potential new employee screenings and interviews, is the second reason they invest in artificial intelligence solutions.
  • To maintain the accuracy of their data, 48% of businesses use machine learning, data analysis, and artificial intelligence tools.

Sources: Gartner, O'REILLY

AI Industry Specific Stats

The artificial intelligence industry has a foothold in various business functions, from cloud computing for datasets to streamlining company decision-making. Artificial intelligence in industry verticals includes tech-related sales, insurance, banking, telecom, healthcare, manufacturing, retail, and marketing.

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Gross value added (GVA) in 2035 (US$ billion)

Industry Baseline (US $ Billion) Additional AI Contribution (US $ Billion)
Accommodation and Food Services

1508

489

Agriculture, Forestry, and Fishing

554

215

Arts, Entertainment and Recreation

453

87

Construction

2764

520

Education

1058

109

Financial Services

3419

1153

Healthcare

2260

461

Information and Communication

3716

951

Manufacturing

8397

3776

Other Services

535

95

Professional Services

7472

1846

Public Services

3988

939

Social Services

1078

216

Transportation and Storage

2131

744

Utilities

962

304

Wholesale and Retail

6179

2225

Key Statistics:

  • The self-driving car market is proving to be more than a novelty niche by grossing $173 billion in global revenue.
  • 68% of respondents from the insurance industry use chatbots to reach a maximum amount of customers at once and thus increase their revenue.
  • By 2035, artificial intelligence technology will add $1 billion to the banking industry.
  • The artificial intelligence market size in telecommunications is expected to grow to $2,497.8 million by 2022, for a CAGR of 46.8% during the forecast period of 2016-2022.
  • 38% of medical providers use computer systems as their diagnosis assistants.
  • Manufacturing businesses that utilize artificial intelligence are performing 12% better than businesses that continue to use only traditional methods.
  • By 2025, the retail industry will be able to relinquish over 95% of online and telephone communications to artificial intelligence technology.
  • 80% of marketers believe that artificial intelligence technology is not a trend but a revolution that will scramble up and revitalize the way all industries approach their work.

Sources: MarketWatch, Accenture, Accenture, Markets and Markets, Gartner, Microsoft, Servion, Demandbase

AI in Marketing, Customer Service, and Sales Statistics

AI marketing companies, customer service roles, and sales departments rely on process automation to increase their market revenue share. Artificial intelligence is a solution for overworked customer-facing roles. AI algorithms reveal sales stats about which products generate market revenue and offer valuable facts about a clientele's purchasing habits.

Key Statistics:

  • Marketing and sales departments prioritize global artificial intelligence and machine learning for market revenue success 40% more than other industry departments.
  • Using artificial intelligence for sales increases leads by 50%, reduces call times by 60%, and results in overall cost reductions of up to 60%.
  • 41% of marketers agree that using artificial intelligence for email marketing generates higher market revenue.

ai-in-email-marketing-min.png

Sources: Forbes, Harvard Business Review, Statista

AI Replacing Jobs and Employment Statistics

Will artificial intelligence taking jobs from human workers become the job crisis of the future? Should you start looking for a new career solution before automation makes your role obsolete?

Employment shares and the estimated proportion of jobs at potential high risk of automation by early 2030s for all UK industry sectors

Industry Employment share of total jobs (%) Job automation (% at potentially high risk)
Wholesale and retail trade 14.80% 44.00%
Manufacturing 7.60% 46.40%
Administrative and support services 8.40% 37.40%
Transportation and storage 4.90% 56.40%
Professional, scientific and technical 8.80% 25.60%
Human health and social work 12.40% 17.00%
Accommodation and food services 6.70% 25.50%
Construction 6.40% 23.70%
Public administration and defense 4.30% 32.10%
Information and communication 4.10% 27.30%
Financial and insurance 3.20% 32.20%
Education 8.70% 8.50%
Arts and entertainment 2.90% 22.30%
Other services 2.70% 18.60%
Real estate 1.70% 28.20%
Water, sewage and waste management 0.60% 62.60%
Agriculture, forestry and fishing 1.10% 18.70%
Electricity and gas supply 0.40% 31.80%
Mining and quarrying 0.20% 23.10%
Domestic personnel and self-subsistence 0.30% 8.10%
Total for all sectors 100% 30%

Key Statistics:

  • Statistics about AI replacing jobs reveal that your fears of career loss might be accurate if you are in transportation and storage (56%), manufacturing (46%), and wholesale and retail (44%) industries in the UK.
  • Statistics about technology taking over jobs predict that technology services will replace 16% of U.S. workers by 2025.
  • On the bright side, trends predict that the artificial intelligence market will also offer a solution to the job loss situation by creating 9% of new jobs in the U.S.

Sources: PwC, Forrester

Where Is AI Used Today? Statistics

Beyond providing personalized recommendations to people, what is artificial intelligence used for today? The uses for AI stretch far beyond cataloging the content of your online shopping cart. Artificial intelligence systems can function as your digital personal assistant, turn the lights on in your smart home, and even protect against infectious diseases, like COVID-19.

Key Statistics:

  • More than 20% of U.S. adults own a smart speaker, like Apple Inc.'s HomePod or the Amazon Echo, and use its speech recognition technology to ask for the weather forecast, turn on music, or make an emergency phone call.
  • Before COVID-19 became an all-too-common term in the healthcare sector, artificial intelligence reports included an outbreak of an unknown type of pneumonia.
  • Your Apple Watch can aid the healthcare sector's mission of a healthier world by utilizing artificial intelligence to time your handwashing sessions for maximum cleanliness.

Sources: Statista, OECD, Apple

Voice Assistants

Have you ever told a chatbot to transfer you to a human representative? While chatbots may still need more practice with natural language processing before consumers are content with using them, voice assistants are a prime example of global artificial intelligence merging effortlessly with everyday life.

Number of digital voice assistants in use worldwide from 2019 to 2024 (in billions)*

Year Number of digital voice assistants (Billions)
2019 3.25
2020* 4.2
2024* 8.4

Key Statistics:

  • By 2024, voice assistants outfitted with natural language processing technology may outnumber the human race at 8.4 billion devices.
  • Over 110 million virtual assistant users reside in the U.S.
  • At the beginning of 2020, voice assistants were a source of information for 51% of all U.S. residents.

Sources: Statista, Statista

Natural Language Processing (NLP)

Natural language processing (NLP) helps computers translate human language into information they understand and vice versa by manipulating data. Artificial intelligence statistics prove that companies are striving to bridge the gap between human language and machine intelligence.

Natural language processing market revenue worldwide 2017-2025

natural-language-procesing-market-rev...

Revenues from the natural language processing (NLP) market worldwide from 2017 to 2025 (in billion U.S. dollars)

Year

Revenue in USD (Billions)

2017

3.18

2018

5.07

2019*

8.21

2020*

12.40

2021*

17.58

2022*

24

2023*

30.35

2024*

37.33

2025*

43.29

Key Statistics:

  • During the forecast period of 2017-2025, the NLP market will likely grow 14 times larger.
  • In 2023, the NLP market revenue share is forecast to increase to over $43 billion.
  • The healthcare sector should expect a higher usage of cloud resources, such as machine learning, natural language processing, and deep learning, over the next five years due to patients downloading and sharing their medical data.

Sources: Statista, Markets and Markets

Machine Learning

Algorithms, machine learning, and statistics allow computers to predict a pattern in available information, evaluate the accuracy of the prediction, and continually optimize the process. Your computer's speech recognition capability and your smartphone's ability to geotag your video content before you share it are everyday examples of the machine learning segment of the global artificial intelligence market.

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Use case frequency of machine learning and artificial intelligence 2020-2021

Use case

2021

2020

Generating customer insights/intelligence

50%

37%

Improving customer experience

57%

34%

Retaining customers

31%

29%

Interacting with customers

48%

28%

Recommender systems

27%

27%

Detecting fraud

46%

27%

Reducing customer churn

22%

26%

Acquiring new customers

34%

26%

Increasing customer loyalty

40%

20%

Increasing long-term customer engagement

44%

19%

Building brand awareness

31%

14%

Other

1%

15%

Key Statistics:

  • When mentioning interesting machine learning facts, you cannot forget Google's deep machine learning technology, which claims that its 99% accuracy rate is more effective than human pathologists at detecting metastatic breast cancer.
  • Machine learning allows Oxford University's artificial intelligence system to read lips at a 93% accuracy level, making the system more accurate than human lip readers.
  • In 2021, 57% of businesses using artificial intelligence and future predictions created by machine learning use the technology intending to improve the customer experience.

Sources: Google AI Blog, BBC, Statista

Big Data

Artificial intelligence technology makes searching and organizing big data sets possible. When conventional methods of storing and collecting big data fail, artificial intelligence technology takes the reins and processes the billions of search queries search engines receive daily.

Key Statistics:

  • Google uses global AI technologies to process its 3.5 billion daily search queries.
  • 90% of data is unstructured, meaning that without technology to process the big data, companies are unable to focus on important data points and thus miss out on opportunities for increasing their revenue.
  • WhatsApp is the most popular messaging app in the world, producing 65 billion messages daily that artificial intelligence technology has to process.

Sources: Internet Live Stats, Forbes, Connective Systems

AI Challenges & Predictions

Artificial intelligence progress comes with its fair share of concerns, including job loss and the ethical implications of computer integration with conscious thought. Global artificial intelligence market players ask, “Can artificial intelligence predictions reveal if AI will be sentient in the next five to 10 years?”

Key Statistics:

  • Elon Musk warns that the current trends predict artificial intelligence services will overtake humans by 2025.
  • 76% of CEOs in 2017 worried about the lack of transparency and the potential of skewed biases in the global artificial intelligence market.
  • 40% of executives agree that advanced AI technologies and the experts who run them are currently too expensive to implement.

Sources: Statista, Independent, PwC, Harvard Business Review

Conclusion

Artificial intelligence statistics reveal that the AI market has a promising and profitable future. While it is shocking to think about potential job losses and economic overhauls, artificial intelligence trends predict that the technology will create more start-ups and jobs than it destroys.

To enjoy the artificial intelligence market's predicted influx of $299.6 billion in 2026 and to adapt to life alongside machines, companies will need to get with the programming.

Written By
Josh Howarth
Co-founder of Exploding Topics.
548 Market St. Suite 95149
San Francisco, California
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