Global AI software market to grow 21.3% in 2022

Pandemic notwithstanding, artificial intelligence (AI) adoption continues to power ahead with global AI software market expected to grow 21.3 percent to US$62.5 billion in 2022.

According to Gartner’s definition, this market covers applications with AI embedded in them, such as computer vision software, and software that is used to build AI systems. Its 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.

The top five use case categories for AI software spending in 2022 will be knowledge management, virtual assistants, autonomous vehicles, digital workplace, and crowdsourced data.

“The AI software market is picking up speed, but its long-term trajectory will depend on enterprises advancing their AI maturity,” said Alys Woodward, Senior Research Director of Gartner.

“Successful AI business outcomes will depend on the 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,” she added.

Enterprises continue to demonstrate a strong interest in AI, with 48 percent of CIOs in the 2022 Gartner CIO and Technology Executive Survey indicating that they have already deployed or plan to deploy AI and machine learning technologies within the next 12 months.

However, Gartner research found that organisations commonly experiment with AI but struggle to make the technology a part of their standard operations.

The research firm predicts 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.

Advances in AI maturity will increase AI software revenue due to increased spending, particularly across the data and analytics-related technology category. A lag in maturity — caused by reluctance to embrace AI, lack of trust in AI and difficulties delivering business value from AI — will have a corresponding deceleration effect on spending and revenue.

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