Artificial intelligence software market growth forecast worldwide 2019-2025

In 2020, the global AI software market is expected to grow approximately 154 percent year-on-year, reaching a forecast size of  22.6 billion U.S. dollars. AI is a term used to describe a variety of technologies referring to the creation of intelligent software or hardware able to learn and solve problems. These include machine learning, computer vision, and natural language processing (NLP), among others. AI is expected to have wide adoption in and implications for every industry vertical and is likely to be one of the next great technological shifts, like the advent of the computer age or the smartphone revolution.

 AI Revolution: an increase or decrease in human labor?

   Despite its potential to optimize the way many industries operate, AI is feared to replace human labor in some. The automotive and assembly, and telecom industries worldwide are predicted to undergo the biggest workforce cuts in the next three years due to the adoption of AI technologies. However, infrastructure, professional services and high-tech industries are predicted to increase their workforce sizes with the adoption of AI technologies during the same time period. This highlights the somewhat polarizing effects of AI to human jobs. In some industries, the introduction of AI greatly expedites processes and minimizes human error, which leads to the replacement of human labor. While in others, AI creates new hybrid roles where humans enable machines and AI augments human capabilities.

 AI’s impacts on global economic

   Despite changes in the global workforce, AI is predicted to contribute to global economic growth. A 2018 global survey estimates that AI will contribute to approximately 26.1 percent of China’s GDP in 2030, 14.5 percent of the GDP in North America, and 13.6 percent of UAE’s GDP. Some of these increases in GDP stem from improvements in productivity and product enhancements due to the adoption of AI technologies. For example, AI in the technology, media and telecommunications industry is forecast to increase global GDP in 2030 by 12.5 percent – 5.5 percent from gains associated with productivity, and 7 percent from gains associated with product enhancements.

Forecast growth of the artificial intelligence (AI) software market worldwide from 2019 to 2025

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Release date

April 2019



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