AI software market maturing and growing

The market is beginning to mature. It is shifting from trials or assessments to full-scale implementation as end users find AI software can help cut costs and generate new revenue streams. Yet, AI software remains a relatively small portion of overall software sales, with varying acceptance across industries. Significant opportunity lies ahead for AI software market penetration, but its growth rate will slow as the market continues to mature.

As a newly introduced technology, AI growth was initially rapid. In 2018, AI software application revenue doubled (105%) to surpass $10 billion while growth decelerated to 67% in 2019.

Worldwide artificial intelligence (AI) software revenue is forecast to total $62.5 billion in 2022, an increase of 21.3% from 2021, according to a new forecast from Gartner, Inc.

“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 at Gartner.

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. 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.