Report Overview

Rapid adoption of technological advancements, an increasing demand for automation, rising investments in AI research and development, and growing AI applications across various industries are driving the growth of the United States Artificial Intelligence (AI) Market during the forecast period between 2024 and 2030.

United States Artificial Intelligence (AI) Market – Industry Trends & Forecast Report, 2030

United States Artificial Intelligence (AI) Market size was estimated at USD 107.2 billion in 2023. During the forecast period between 2024 and 2029, the size of United States Artificial Intelligence (AI) Market is projected to grow at a CAGR of 12.07% reaching a value of USD 238.01 billion by 2030. The United States Artificial Intelligence (AI) Market is propelled by the surge in digitalization and widespread dependence on smart devices, fostering the integration of AI systems. The trend enhances operational efficiency through robust data analysis. Notably, companies like Netflix leverage AI-driven insights for personalized user recommendations based on viewing history. The market is further buoyed by the escalating demand for intelligent virtual assistants, the rising adoption of AI-powered industrial and surgical robots, and the expansive growth of 5G infrastructure. The factors collectively contribute to the dynamic landscape of the AI market in the United States.

Artificial Intelligence (AI) – Overview

Artificial Intelligence (AI) refers to the development of computer systems that can perform tasks requiring human intelligence. It encompasses machine learning, where systems learn from data to improve performance over time. AI applications include natural language processing, computer vision, and problem-solving. The goal is to create machines capable of reasoning, learning, and adapting, leading to advancements in automation, decision-making, and problem-solving across various industries. Ethical considerations, privacy concerns, and the potential impact on employment are integral aspects of the ongoing AI discourse.

United States Artificial Intelligence (AI) Market

Growth Drivers

Big Data Integration

The infusion of big data is a pivotal catalyst propelling the expansion of the United States Artificial Intelligence (AI) market. The surge in data storage, capture, and analysis demands fosters the rapid introduction of AI solutions. Companies, driven by the imperative to enhance computational models, are swiftly adopting AI in business operations. Private and public entities leverage AI algorithms for tasks spanning medical informatics, fraud detection, national intelligence, marketing, and cybersecurity. The synergy of Artificial Intelligence (AI) and big data facilitates automated analysis of unorganized data and also fuels the market's growth through meaningful pattern extraction.

Advances in Recognition Technology and Cloud Computing

In recent years, machines have outpaced humans in speech, image, and face recognition, propelling Artificial Intelligence (AI) adoption across industries. The widespread implementation aims to cut costs, enhance efficiency, and elevate customer satisfaction through improved experiences. The imminent replacement of call center staff by AI machines for inquiries and client services further propels market growth. Additionally, the rapid evolution of affordable cloud computing infrastructure significantly influences the global AI market, enabling real-time data exchange for small and medium-sized businesses. Cloud-based technologies play a pivotal role in reshaping the IT landscape, becoming a primary growth driver for the AI industry.

Challenges

Transparency Imperative for Growth of United States AI Market

In the dynamic landscape of the United States Artificial Intelligence (AI) Market, the intricacies of AI models pose a significant hurdle. The inherent complexity hampers comprehension of decision-making processes, resulting in opaque outcomes—especially in vital sectors like finance and healthcare. The 'black box' nature of AI solutions raises concerns about trust and accountability, critical elements for industries requiring transparency to safeguard proprietary interests. The delicate balance between innovation and clarity becomes pivotal, as transparency issues in decision-making emerge as a hindrance to the burgeoning growth of the AI market in the United States.

Impact of Escalating Geopolitical Tensions on United States Artificial Intelligence (AI) Market

Escalating geopolitical tensions can significantly impact the United States Artificial Intelligence (AI) market. Increased trade restrictions and strained international relations may disrupt the global supply chain for AI components and hinder collaboration on research and development. For instance, the United States-China trade conflict has already affected the AI sector, with restrictions on technology transfer and intellectual property concerns. These tensions can impede cross-border talent flow, affecting the diverse pool of skilled professionals contributing to the U.S. AI ecosystem. Additionally, market uncertainty and potential regulatory changes in response to geopolitical events may lead to investment fluctuations, impacting the growth trajectory of the United States AI market.

United States Artificial Intelligence (AI) Market

Segmental Coverage

United States Artificial Intelligence (AI) Market – By Solution

Based on solution, United States Artificial Intelligence (AI) Market is divided into Hardware, Software, and Solution segments. The software segment dominated the United States Artificial Intelligence (AI) Market. The dominance is driven by advancements in information storage, robust computing power, and parallel processing capabilities, enabling the provision of innovative services. The segment's prowess lies in extracting data, offering real-time insights, and facilitating decision-making, positioning it as a major player in the market. Artificial Intelligence (AI) software solutions encompass diverse libraries for creating and deploying applications, featuring primitives, linear algebra, inference, sparse matrices, video analytics, and various hardware communication capabilities. Anticipated growth stems from enterprises seeking to comprehend and analyze visual content for meaningful insights, bolstering the adoption of AI software in the coming years.

United States Artificial Intelligence (AI) Market – By Technology

Based on technology, United States Artificial Intelligence (AI) Market is divided into Deep Learning, Machine Learning, Natural Language Processing (NLP), and Machine Vision segments. The deep learning segment is the highest contributor to the United States Artificial Intelligence (AI) Market. The dominance emanates from its intricate applications fueled by data, encompassing audio, video, and text recognition. The continuous technological advancements in deep learning are poised to address challenges associated with high data volumes. Additionally, the increasing adoption of deep learning in the medical field is expected to amplify segment growth. Simultaneously, machine learning plays a pivotal role in AI investments, fostering applications like hypothesis generation, clustering, altering, tagging, visualization, and navigation. Notably, on-premises hardware and cloud computing contribute significantly to data analytics platforms, with substantial investments from tech giants promising future market expansion.

United States Artificial Intelligence (AI) Market – By End Use

Based on end use, United States Artificial Intelligence (AI) Market is divided into Healthcare, BFSI, Law, Retail, Advertising & Media, and Others (Automotive & Transportation, Manufacturing, and Agriculture) segments. The banking, financial services, and insurance (BFSI) sector is the largest end use segment in the United States Artificial Intelligence (AI) Market. AI solutions find broad applications in this sector, spanning account inquiries, loan applications, fraud detection, and credit score monitoring. The BFSI's extensive data generation makes it an ideal ground for AI applications, and the sector's demand for 24/7 seamless service further propels segment growth. AI-powered tools excel in delivering reliable outcomes for customer service interactions, reinforcing the sector's reliance on Artificial Intelligence (AI) for enhanced operational efficiency.

Competitive Landscape

Major players in the United States Artificial Intelligence (AI) Market include Microsoft Corporation, Amazon.com, Inc., IBM Corporation, Alphabet Inc. (Google LLC), SAP SE, Rockwell Automation, Inc., Micron Technology, Inc., General Electric Company, and Intel Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In September 2023 - EY launched EY.ai, its artificial intelligence platform, with a total investment of USD 1.4 billion.

• In August 2023 - The United States Government launched AI Cyber Challenge, a new two-year competition to use AI in protecting its most important software.

Scope of the Report

By Solution

• Hardware

• Software

• Solution

By Technology

• Deep Learning

• Machine Learning

• Natural Language Processing (NLP)

• Machine Vision

By End Use

• Healthcare

• BFSI

• Law

• Retail

• Advertising & Media

• Others (Automotive & Transportation, Manufacturing, Agriculture)