Global AI software market to reach US$62b in 2022, says Gartner

Global AI software market to reach US$62b in 2022, says Gartner
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KUALA LUMPUR (Nov 23): Global artificial intelligence (AI) software revenue is forecast to rise 21.3% year-on-year in 2022 to US$62.5 billion (about RM261.75 billion).

The AI software market encompasses applications with AI embedded in them, such as computer vision software, as well as software that is used to build AI systems.

Technology research and consulting firm Gartner Inc on Monday (Nov 22) forecast that the top five use case categories of AI software spending in 2022 will be knowledge management, virtual assistants, autonomous vehicles, digital workplace and crowdsourced data.

Gartner’s AI software forecast is based on use cases, measuring the amount of potential business value, timing of business value and risk to project how use cases will grow.

Alys Woodward, Gartner's senior research director, said the AI software market is picking up speed, but its long-term trajectory will depend on enterprises advancing their AI maturity.

She said successful AI business outcomes will depend on careful selection of use cases.

“Use cases that deliver significant business value, yet can be scaled to reduce risk, are critical to demonstrate the impact of AI investment to business stakeholders,” said Woodward.

AI maturity

Gartner said demand for AI technologies and associated market growth are closely tied to organisational AI maturity levels.

The firm said enterprises had continued to demonstrate strong interest in AI.

It added that 48% of chief investment officers (CIOs) in the 2022 Gartner CIO and Technology Executive Survey responded that they had already deployed or plan to deploy AI and machine learning technologies within the next 12 months.

However, Gartner said the reality of AI deployment is much more limited.

It said organisations commonly experiment with AI but struggle to make the technology part of their standard operations.

Gartner predicted that it will take until 2025 for half of organisations worldwide to reach what Gartner’s AI maturity model describes as the “stabilisation stage” of AI maturity or beyond.

AI software market forecast by use case, 2021-2022, worldwide (millions of US dollars)

Segment

2021 revenue

2021 growth (%)

2022 revenue

2022 growth (%)

Knowledge management

5,466

17.6

7,189

31.5

Virtual assistants

6,210

12.0

7,123

14.7

Autonomous vehicles

5,703

13.7

6,849

20.1

Digital workplace

3,593

13.7

4,309

20.0

Crowdsourced data

3,483

13.6

4,171

19.8

Others

27,049

14.1

32,827

21.4

Total

51,503

14.1

62,468

21.3

Source: Gartner (November 2021)