How Much Is The AI Industry Worth in 2024? (Market Size)

Artificial Intelligence (AI) is constantly in the news.

Every day, there is either a new development or another story about how AI will lead to the downfall of humanity. 

While no one can know for certain what the future holds when you consider how much is the AI industry worth and what it is likely to be worth, you know it is becoming an increasingly dominant industry. 

The truth is, AI isn’t new.

The first advancements in AI came just after World War II.

Humanity was optimistic that the robots showcased then could do many of the boring chores.

Unfortunately, people lost interest in AI, and the funding stopped, effectively preventing further development. 

It wasn’t until the early 2000s that interest in AI started to grow again.

This was thanks to IBM’s Watson. 

For many years, AI has been a curiosity industry, with various people experimenting with what could be possible.

However, as the following statistics will show, in the last couple of years, the industry has exploded. 

Today, AI is appearing in almost every industry and at home.

Many have referred to the current period as ‘the Fourth Industrial Revolution’.

It’s estimated that the revolution may be complete in just 10-20 years.

In short, you could be looking at a very different world within your lifetime. 

Let’s take a look at the top AI industry facts. 

Key Statistics

• The global AI industry is worth $208 billion
• The US AI industry accounted for 36.8% of the industry in 2021
• The biggest tech companies in the world are embracing AI
• 86% of business managers expect ai to become essential to their business
• AI software is a large part of the industry
• 17% of digital marketing experts use AI
• Most businesses see AI as important for security
• 12% of business professionals believe AI will create jobs
• Singapore currently uses the most AI

How Much Is The AI Industry Worth in 2024?

1. The Global AI Industry Is Worth $208 Billion

As mentioned, the AI industry has taken off in the last few years and this trend looks set to continue.

Now is certainly the time to either get into the industry or invest!

In 2021 the AI industry was worth nearly $96 billion.

That’s impressive for a young industry.

However, by 2022 this value had reached $142 billion and in 2023 it’s estimated to be worth $207 billion. 

However, while this indicates the rapid growth experienced by the industry so far, it barely scratches the surface of what is to come.

By 2025 Statista estimates the industry will be worth $420 billion, and it will surpass $1 trillion by 2028.

In fact, current estimations show the global AI industry will be worth $1.8 trillion by 2030. 

That’s unprecedented growth in less than ten years!

(Statista)

2. The US AI Industry Accounted For 36.8% Of The Industry In 2021

Unsurprisingly, the US is dominating the AI market.

This has been achieved through dedicated research and implementation of AI in most major industries. 

Of course, this approach has been assisted by the willingness of businesses and individuals to embrace AI and the potential it offers. 

According to the latest figures, the US AI industry was worth 36.8% of the global industry.

That’s a value of just over $35 billion. 

The US AI industry is expected to grow at an average compound annual growth rate of 37.3% between now and 2030.

In other words, the US is expected to continue dominating the market.  

(Grand View Research)

3. The Biggest Tech Companies In The World Are Embracing AI

The rise of AI has been facilitated by some of the biggest companies in the world including AI in their daily processes. 

For example, McDonald’s spent over $300 million purchasing a tech start-up which was based in Tel Aviv.

It wasn’t to break into the industry. 

The tech company gave McDonald’s all the AO tools it needed to personalize customer experiences.

That entices more customers to McDonald’s and has more than justified the funds spent. 

Other companies that are embracing AI include Google, Amazon, Apple, Microsoft, and even Facebook.

Likely, you’ve already come across AI on one of these platforms. 

While each business has its own take on AI, the goal is a common one, to improve the customer experience. That’s something everyone can relate to. 

It’s worth noting that the US and China are leading the way in AI research and development.

It’s expected that 70% of the industry growth will be thanks to these two countries.

(Grand View Research)

4. 86% Of Business Managers Expect AI To Become Essential To Their Business

According to the latest research, 25% of businesses have already integrated AI into their business in some form or another. 

What’s more impressive is that 86% of business managers have already determined that AI will be an essential ingredient to their future success. 

In fact, 75% of those asked believe that their business is likely to flounder and potentially go out of business if they don’t integrate AI. 

In short, most people will expect AI to become part of the purchasing process and will avoid companies that don’t offer this experience. 

Of those who have already embraced AI, 64% feel that the experience has been beneficial.

Indeed, professionals already using AI have found that AI has been as good as, or better, than they expected. 

(Zippia)

5. AI Software Is A Large Part Of The Industry

Globally, the software market is likely to bring in $70 billion in revenue during 2023.

That’s approximately one-third of the industry.

It’s significantly more than the $10.1 billion the AI software industry was worth in 2018.

Estimates suggest this value will rise faster and could be worth 50% of the industry by 2025.

It’s predicted the software industry will be worth $126 billion in 2024 and close to $200 billion in 2025.

These figures aren’t that surprising as businesses are increasingly looking to add AI to their customer options.

As AI becomes more accessible to all there will be a marked uptake in companies using it, and this will cause a snowball effect.

It’s estimated that product enhancements will be the key to the growth of the AI industry.

The enhancements may be artificially generated, but they should encourage people to invest in these systems.

(Zippia)

6. 17% Of Digital Marketing Experts Use AI

It’s strange but you would think that marketing professionals would be one of the first to see the potential of AI and machine learning.

The industry offers the ability to personalize the customer experience with minimal effort. 

Despite this, only 17% of digital marketing professionals are currently using AI or machine learning to build relationships with new and existing customers. 

The strangest part is that 63% of those asked felt it was difficult to create a personalized experience for any customer.

The good news is that 84% of respondents are positive that AI will help them deliver better-targeted ads and other materials to ensure they can connect with customers. 

While the number of marketing experts using AI is low, it is increasing.

The statistics show that the uptake of AI has been increasing by an average of 28% every year. 

It’s only a matter of time before all marketing executives are using it. 

(Zippia)

7. Most Businesses See AI As Important For Security

One of the biggest reasons for companies to start using AI is to improve the customer experience.

This is essential for brand reputation. 

However, most businesses feel that the biggest benefit to them of AI is in protecting the business.

Simply being able to avoid data breaches can be an effective way to win over the competition’s customers. 

AI is capable of identifying threats and fraud.

It can also find ways to distinguish cybersecurity issues and repair the issues by itself. 

That is why it’s seen as such a valuable benefit to any business. 

Businesses also see AI as useful to help detect bias in the business and even improve ethical responses. 

An AI system can help employees make better choices, as well as automate many of the processes. 

Best of all, good AI software will create simulations, allowing you to see the likely outcome of certain actions.

This can be particularly helpful when deciding on an advertising campaign or making business decisions.

(Zippia)

8. 12% Of Business Professionals Believe AI Will Create Jobs

12% of business leaders are confident that AI will create more jobs than it destroys. 

This theory has a surprising amount of credibility.

When the Industrial Revolution started people were naturally worried about machines replacing them.

However, the machines required maintenance and created more jobs than were lost. 

Even better, the new jobs were more skilled and better paid. 

12% of those asked felt the same principle would apply today to the AI revolution. 

It’s estimated that 800 million workers globally will lose jobs because of AI.

However, it’s also estimated that over one million will be created through higher demand thanks to price reductions and new jobs supervising and building AI products. 

In short, history has shown repeatedly that these types of revolutions create more jobs, the 12% who already believe this are probably right. 

(Zippia)

9. Singapore Currently Uses The Most AI

The US may dominate the AI industry but it isn’t the country that uses AI the most.

Surprisingly, this is Singapore. 

According to the latest research by Zippia, Singapore already has structures in place that would allow AI to be used across the country.

The structures are designed to grow with the AI, ensuring it can be successfully incorporated into daily routines. 

The US, UK, and Germany are considered the next most-ready countries. 

(Zippia)

The Future Of AI

AI is still a relatively young industry, although interest and adoption is growing. 

According to the latest research, 25% of businesses that use AI have successfully built an AI system that works across the company. 

Unfortunately, 25% of respondents also report failing to create company-wide AI systems.

Interestingly, the reason for these failures is predominantly due to AI being unable to take the same level of risk that a human would. 

In short, the AI software isn’t providing the business with any news information. 

The good news is this is an area that is improving constantly.

As AI becomes better at understanding acceptable risks, it will offer improved business decisions and become instrumental in business success. 

The result is more businesses and individuals will develop trust in AI, and the uptake of this technology will grow rapidly. 

This is already reflected in the global AI value today and the predicted values for the future. 

The groundwork has already been laid.

It’s estimated that 77% of people already use some form of AI.

This is generally in the form of a chatbot, smartphone personal assistant, or even in a car with technology such as lane assist. 

AI tech has already become so integrated into daily life that while 77% are using it, only 33% of people realize they are using AI.

Summing Up

By now, you should have realized that’s is not how much is the AI industry worth that matters; it’s how much it will be worth in the next 5-10 years. 

This is an industry that is set to see rapid growth for the foreseeable future, and all businesses and individuals should seize the opportunity now to integrate their systems with AI. 

While there is naturally some fear of AI, as there is of any new system, the truth is it’s likely to be beneficial for everyone. 

Whatever the outcome, AI is about to be integrated into businesses everywhere.

If you want to stay competitive or abreast of the latest technology changes, you need to embrace AI today. 

It will allow you to become a future statistic, hopefully, one that paints a very rosy picture.

Sources

Statista	McKinsey Insights	Zippia
	Grand View Research