Top AI Industry Statistics You Must Know (2024 Edition)

Are you planning to start a business in AI or are you planning to adopt AI in your business functions? Are you concerned about your job in this AI world or are you just curious about the AI marketplace?

Well, the present and the future surround Artificial Intelligence.

Whether or not one understands AI, the chances of an individual using AI in their everyday life is more than 74%.

Don’t believe us? Well, let’s surprise you.

• The face lock system on your smartphone uses an AI tech.
• The Fitbit that tracks your fitness activities is a wearable AI tech.
• The Siri and Alexa on your devices are AI-powered.
• The Netflix recommendations “For You” are actually AI-powered.
• The suggestions sent by the shopping app are curated by AI.

Well, there has never been a better time than today to expand your understanding of AI.

This curated blog post of the latest Artificial Intelligence statistics will help you understand the current market state, future possibilities, existing use cases, and prominence of AI in different industries.

Ready to get started? Let’s dive right in.

Artificial Intelligence Market Size and Growth

Let’s check these AI statistics offering a brief insight into the global AI market size, number of AI companies, GDP growth rate, AI size in different industries, and leading nations propelling the growth of AI.

By 2030, the Global AI market size is predicted to reach $1.81 trillion. (source)

Between 2020 and 2030, the global AI market will grow at a CAGR of 37.3%. This is higher than the growth rate of all the other industries worldwide. The AI market which was worth merely $12.9 Billion in 2020 grew into a humongous $196.63 billion market in 2023.

Let’s quickly have a look at the Global AI market value of these industries:

Interestingly, North America dominates the AI market in all these industries, making it the largest propagator and contributor of AI.

Between 2023 and 2030, the US AI market is expected to record a CAGR of 21.6%. (source)

The prominence of AI continues to grow in the US marketplace. The AI market which was $515.31 billion in 2023 is predicted to have a market size of $2025.12 billion in 2030.

The AI software market has grown by more than 12 times between 2018 and 2025. (source)

The AI software market has witnessed rapid growth over the past few years and is expected to reach a market size of $126 billion by 2025. This is a vast marketplace that includes software for Natural Language Processing(NLP), Machine Learning(ML), robotic processing, and much more.

The global wearable AI market is expected to register a 29.8% CAGR between 2023 and 2030. (source)

By 2030, the wearable AI market is predicted to reach a market size of $166.5 billion. Amongst the different AI technologies contributing to this growth, smartwatches will continue to hold a dominant share in the wearable market (nearly 30%).

Global GDP will be 14% higher in 2030 as a result of accelerated AI development. (source)

By 2030 AI would contribute an additional $15.7 trillion to the Global economy making it the biggest commercial opportunity in this fast-paced world.

China and North America will enjoy over 70% of the global economic gains resulting from AI use. (source)

By adopting AI tools and technologies, China is expected to see over 26% boost ($7 trillion) in their local GDP. North America takes the second position, as it will witness a 14.5% increase in its GDP roughly accounting for $3.7 trillion by 2030.

As of 2024, there are nearly 67,000 AI companies in the world. (source)

This is nearly 14 times more than the number of AI companies in 2000. Today, 1 in 4 AI companies in the World is based in the US making it the country with the largest number of AI startups. In the past 7 years, after 2017, the number of AI startups in the US has more than doubled.

The Global AI chip market will expand at a CAGR of 29.72% between 2022 and 2032. (source)

There is a boost in the AI chips market as the deployment of AI in various fields increases. By 2032, the market for these AI systems is expected to be $227.48 billion. Rapid technological advancements will increase the AI usage of chips in multiple industries.

The machine learning segment dominates the artificial intelligence chip market. However, if we consider geography, North America dominates this market space.

The Global telecommunications AI market is predicted to grow at a CAGR of 41.4%. (source)

A higher rate of AI adoption in the telecom segment is propelling the growth of the AI telecommunications market. By 2031, the AI service revenue in the telecommunication segment is predicted to reach $38.8 billion.

State of Global AI Adoption

These statistics offer an insight into the global AI adoption rate, factors driving AI adoption, benefits gained from AI, spending on global AI technologies, and much more.

Let’s gather a better understanding of the AI market by studying the adoption across different industries and business functions.

35% of companies worldwide have adopted AI in their business. (source)

The global AI adoption rate is 4% higher than in 2022. However, if we look at the US marketplace in particular, the AI adoption rate is more than 73%.

China and India have a higher AI deployment rate than the US. (source)

The AI deployment rate in China is 58% while that in India is 57%. However, despite being the largest growing economy for AI, the deployment rate in the US is as low as 25%.

The AI usage rate increased by 270% between 2015 and 2019. (source)

AI adoption across industries has grown at an unprecedented rate. In 2015, only 10% of the executives had AI deployed in their business functions. Today, 9 out of 10 organizations are planning to pivot AI in their business strategies.

Service operations, product and service development, and marketing remain the top business functions attracting AI adoption. (source)

While deploying AI, companies invest AI in business functions likely to generate the most value/ traction within their industry. The AI adoption in different business functions varied from industry to industry.

Here are a few industries and their top business function attracting AI adoption.

By 2027, worldwide spending on AI-powered solutions and AI technology will grow to more than $500 billion. (source)

Nearly 40% of the core IT spending of Global 2000 organizations will be directed toward AI-related initiatives by 2025. This is likely to increase adoption amongst people for AI technology and AI-enhanced products and services.

44% of the executives experienced cost reduction after deploying AI technology in their company. (source)

As a result, the majority of the respondents have witnessed considerable cost reduction in their manufacturing and supply chain processes. Further, 63% of respondents also reported revenue increases in the business areas where AI has been adopted.

By 2026, nearly 157 million people in the US will be using AI-powered voice assistants. (source)

The highly advanced Siri was the first virtual assistant to be made available on a large commercial scale. However, today the market is dominated by Siri and other AI voice assistants like Google Assistant, Alexa, Cortana, and many more.

Impact of AI on Jobs, Employment, and Workforce

AI is bringing tremendous shifts in the global workforce and these statistics have some interesting revelations to make. Let’s check these out:

AI will displace 85 million jobs by 2025. (source)

However, 97 million new jobs will be created during the same time. While physical labor jobs are most likely to be at risk, jobs that involve managing people, social interactions, and expertise are less likely to be affected by automation.

Considering another research by McKinsey on the global workforce, nearly 400 million jobs are predicted to be displaced by 2030.

⅓ of the activities in nearly 60% of the organizations can be technically automated by 2025. (source)

However, technical feasibility is not the only factor driving the pace and extent of automation through AI. Cost, social and regulatory acceptance, quality of labor, and AI deployment are among the other factors that will influence employment in the coming years.

81.6% of people feel that Chat GPT will endanger content writer jobs. (source)

Although the use of AI for content writing and article creation has increased substantially, 63% of users are concerned about the bias and inaccuracy resulting from AI-generated content.

However, another 65.8% of the people feel AI content to be equal to or better than human writing.

75% of the accounting tasks will be automated by AI accounting software in the future. (source)

92% of the accountants are not future-ready. If accountants don’t adapt AI to automate repetitive and time-consuming tasks, their jobs can be deemed risky.

The demand for AI and machine learning specialists is expected to grow by 40%. (source)

Nearly 1 million people are already employed as AI and machine learning specialists, which is expected to grow by 40% in the coming years. However, if we look at the overall AI marketplace, more than 100 million people will work in this space by 2025.

AI is expected to increase labor productivity by 40%. (source)

According to a report by PWC, the use of emerging AI technologies and big data would enhance labor productivity by 40% adding trillion dollars GVA to the world economy.

Companies using AI are gaining a competitive edge over businesses that fail to adopt AI in their business functions.

Generative AI statistics

Generative AI is growing at an unprecedented rate and here are some statistical insights talking about open AI, its adoption, use, and NLPs.

It took Chat Gpt 5 days to acquire its first million users. (source)

Chat GPT which is one of the most popular AI tools, registered 1 million users in just a matter of 5 days. It took about 2.5 months and 5 months respectively for Instagram and Spotify to reach their first million users.

By February 2023, 3 months from its launch date, Chat GPT reached 1 billion users making it the fastest-growing app and AI technology in the World.

75.7% of marketers have started using open AI tools for their professional work. (source)

Chat GPT is the largely used open AI by marketers across the World. Nearly 69% of digital marketers use Chat GPT for content creation. For lead generation, Dall-E-2 takes the lead spot with nearly 33.7% of the marketers using it actively.

Lastly, Midjourney is used by 54.4% of organizations to generate AI images.

49.5% of marketers take the help of AI tools multiple times a week. (source)

The increased use of Generative AI tools in everyday activities is likely due to their free availability.  AI adoption in marketing and sales functions has increased considerably across all industries.

The rate of generative AI adoption is highest in the marketing (37%), technology (35%), and Consulting (30%) industries. (source)

While the overall AI adoption rate is high, the use of generative AI is the lowest in the healthcare industry. Less than 15% of healthcare professionals use generative AI tools to assist with work-related tasks. Positions that require a higher level of education are quite at risk of being automated by generative AI.

The Global NLP market is projected to grow at a CAGR of 29.3% by 2028. (source)

The $18.9 billion NLP( natural language processing) market is projected to reach $68.1 billion by 2028. 7 companies in the US alone accumulated funding of more than 50 million dollars in 2022. The list includes companies like Verbit, Grammarly, Unisound, and many more.

AI and business stats

These statistics throw some light on industries that will implement AI, projected revenue growth, aspects of AI investment, ROI, and automation rate.

Between 2020 and 2021, the investment in AI-driven startups has doubled. (source)

Investments in AI-driven startups were a little over 30 billion dollars in 2020. However, within 12 months, the funding in AI startups reached over 65 billion dollars, reporting more than double growth. The funding space witnessed a certain decline in 2022, however, the emerging space for generative AI and Open AI changed that in 2023.

92% of the large companies have started realizing their returns on big data and AI investments. (source)

The percentage of companies reporting returns on data and investment was merely 48.4% in 2017. The returns on AI investments are more prominent today than they were 5 years back.

Between 2019 and 2024, the AI accounting market is expected to grow by 700%. (source)

The $660 Million AI accounting market is expected to reach a $4.7 Billion market size by 2024. 80% of the executives at the top believe that AI in accounting will offer a competitive advantage and increase the overall business productivity of the company.

80% of retail executives expect that their companies will adopt AI automation by 2025. (source)

40% are already using some sort of AI automation in their business processes. The executives in the retail industry believe that intelligent automation will boost the annual revenue growth of their firms by 10%.

The adoption of Gen AI will likely increase banking industry revenue by 6%. (source)

In the next three years, the revenue in the banking sector is expected to grow by $1 billion due to AI automation and augmentation. A survey also predicted that banking sectors can increase their productivity by 22-30% by implementing Gen AI in their business processes.

67% of the digitized firms have embedded AI in standard business processes. (source)

Non-digitized firms have difficulty embedding artificial intelligence into their everyday business processes. According to a survey, nearly 39% of digitized companies have embedded machine learning in their business processes, while only 16% of non-digitized companies have claimed to use such AI tools.

1 in 3 business owners (37%) using Artificial Intelligence focuses on automating their IT processes. (source)

Considering the other use cases for AI, 32% of businesses focus on automating IT management, 29% adopt AI for activity monitoring, and 28% use AI to automate customer care experiences.

Popular AI Use and Function Statistics

Where is AI used and how are companies likely to benefit from AI tech? Well, these statistics here can help you understand the nuances of AI and its use in different industries.

52% of telecom companies have deployed chatbots at the workplace. (source)

It is predicted that nearly 95% of all communications will take place through AI-assisted technologies. This means, 19 out of 20 customer interactions will be assisted through AI tech like chatbots.

There will be nearly 8.4 billion voice search AI assistants by 2024. (source)

By 2024 end, the total number of voice assistants in the world will surpass the world population. An interesting study revealed that 41% of adults in the US use voice search every day. Interestingly, 27% of the total voice searches are made from mobile devices.

Google Assistant understands the voice search query accurately 99.9% of the time. (source)

The other AI techs leading the virtual assistant charts are Siri and Alexa. Be it in terms of understanding the query or offering accurate answers- Google Assistant takes the top front position. In terms of Navigation, it has an accuracy of whooping 98%.

41.29% of the marketers witnessed an ROI increase after adopting AI in their Email marketing strategy. (source)

4 in 10 marketers believe that using AI in email marketing helps to improve company revenue. Apart from this, using AI can also potentially improve click-through rates, opening rates, and the rate of deliverability.

The market of fully automated cars is expected to contribute $13.7 Billion by 2030. (source)

Although four out of five customers don’t trust self-driving cars to offer enough vehicle security, it is predicted that 1 out of 10 vehicles in the market will be self-driving by 2030.

Considering the applications side, robo-taxis will have the highest market segment (1,167 billion dollars) making it the top use case for driverless vehicles.

Netflix’s personalized AI recommendations save them $1 Billion every year. (source)

Nearly 80% of the subscriber’s video choices come from recommendations and not some general search. Netflix firmly believes that it would be losing billions of dollars annually if it weren’t for its recommendation services. This year, Netflix plans to spend $5 billion on its global content.

Oxford University’s AI system called LipNet offers 93% accuracy in lip reading. (source)

Scientists at Oxford developed a lip-reading machine that offered 93% accuracy in its test results. The professionals at lip reading could offer only 60% accurate results up until now. This opens avenues of opportunities for lip-reading AI platforms in the market.

40% of people feel positive about the use of AI-powered robots in surgeries. (source)

According to a survey by the Pew Research Center, there is a positive notion about the use of robots to conduct surgery. However, 59% of the surveyed respondents feel strongly against the use of robots in surgeries.

AI Risks & Challenges

The growing AI industry is engulfed by challenges and risks that need to be addressed and resolved. Let’s have a quick glance at these challenges to understand the existing AI market better.

The hurdles in implementing AI remain substantial and persistent. (source)

Here are the top reasons that hinder AI adoption:

• Limited AI skills (34%)
• Extremely pricey (29%)
• Lack of AI Tools and AI systems (25%)
• Complex and difficult-to-integrate projects (24%)
• Data complexity (24%)

43% of the companies consider lack of strategy as the biggest barrier to AI adoption. (source)

As the prominence of AI continues to grow, organizations should consider spending more and more time to get their AI deployment strategy right. Only 28% of small companies have a holistic AI strategy in place. Lack of strategy restricts them from deploying AI to their top business functions.

Other than strategy, lack of talent, functional silos, and lack of technological infrastructure remain the top AI challenges for companies.

AI system poses severe environmental impacts. (source)

Training an AI system emits 25 times more carbon than a single air traveler on its one-way trip from New York to San Fransisco. Research to make AI platforms and technologies energy efficient is underway.

The number of AI incidents and controversies has increased 26 times since 2012. (source)

The ethical misuse of AI continues to concern people. In the past few years, the instances of deep fake videos show that the possibility of misuse increased as the use of AI grows among common people.

19% of people are concerned regarding the loss of human jobs due to the emerging surge of AI. (source)

Amongst the other top reasons, 16% of people are concerned about surveillance, hacking, and digital privacy while 12% are concerned about the lost human connection due to automation.

Concluding Thoughts

Fear it or embrace it- AI is here to stay forever. It has brought along tremendous shifts in the economy and for the years ahead, AI is going to dominate the industrial trends, market shifts, and the fate of industries altogether.

The workforce is revolting, skills in demand are changing, and the redundant roles are getting displaced. However, the time will continue to favor those who are willing to embrace AI.

If anything, the statistics above clearly established the prominence of AI in the current marketplace. Gain essential insights from these statistics and dive further deep into the research to build a solid foundation for your AI business idea.

And while you are at it, strengthen your business planning with Upmetrics AI business plan software.