July 19, 2024
Enterprise Artificial Intelligence (AI) Market

Growing demand for AI solutions to advance digital transformation fueling growth of the Enterprise Artificial Intelligence Market

The global Enterprise Artificial Intelligence Market is estimated to be valued at US$ 21.48 Bn in 2023 and is expected to exhibit a CAGR of 34.1 % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Enterprise artificial intelligence consists of applications of artificial intelligence in various business process and applications. It helps in automating repetitive tasks, improve customer experience, predicting trends and risks, and interpreting large amounts of data. AI solutions evaluate huge volumes of structured and unstructured data to discover hidden patterns, unknown correlations, market trends, customer preferences and other useful business insights. This help organizations in making smarter decisions across finance, human resources, operational processes and customer service functions.

Market key trends:
One of the major trend in the Enterprise Artificial Intelligence market is the growing adoption of cloud-based AI solutions. Cloud deployment model offers benefits such as scalability, flexibility and cost-efficiency which is attracting enterprises. Cloud AI services helps businesses leverage advanced AI techniques without large up-front infrastructure investment. It also enables organizations to access powerful AI capabilities through an application programming interface (API) or web interface. This is expected to drive significant growth of cloud-based enterprise AI solutions market during the forecast period.

Porter’s Analysis:

Threat of new entrants: The threat of new entrants in the enterprise artificial intelligence (AI) market is low. The need for large investments in R&D acts as a barrier for new players to enter this market.
Bargaining power of buyers: The bargaining power of buyers in high in this market as there are numerous players offering various AI solutions. This provides buyers with choices and puts downward pressure on prices.
Bargaining power of suppliers: The bargaining power of suppliers is low as there are many component manufacturers for AI technologies. This allows buyers to negotiate on better prices.
Threat of new substitutes: The threat of substitutes is low as AI solutions have intricate algorithms which are difficult to replicate. This provides protection against substitutes.
Competitive rivalry: The competition in the enterprise AI market is high amongst major technology companies offering similar solutions. Players differentiate through investments in R&D and ongoing innovation.

Key Takeaways:

The global Enterprise Artificial Intelligence (AI) Market Demand is expected to witness high growth, exhibiting CAGR of 34% over the forecast period, due to increasing demand for automation across various business functions.

Regional analysis: North America dominates the global enterprise AI market currently, owing to the presence of major technology companies and heavy investments in AI technologies by organizations in the region. Asia Pacific is expected to be the fastest growing market due to rapidly increasing adoption of AI solutions by enterprises in countries like China and India.

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. Key players are focusing on developing innovative AI solutions and offering advanced capabilities to clients across industries for gaining competitive advantage.