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Gartner reveals worldwide AI software revenue to hit $62.5bn, up 21.3%

Thu, 25th Nov 2021
FYI, this story is more than a year old

Worldwide artificial intelligence (AI) software revenue is forecast to total US$62.5 billion in 2022, according to a new forecast from Gartner. This is compared to US%51.5 billion in 2021, representing an increase of 21.3% in total.

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.

Gartner forecasts that 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.

Of these categories, knowledge management saw the highest growth, followed by autonomous vehicles and digital workplaces.

  • Knowledge management revenue was US$5.5 million in 2021 compared to US$7.2m in 2022, with growth of 31.5%
  • Virtual assistants revenue was US$6.2 million in 2021 compared to US$7.1m in 2022, with growth of 14.7%
  • Autonomous vehicles revenue was US$5.7 million in 2021 compared to US$6.8m in 2022, with growth of 20.1%
  • Digital workplaces revenue was US$3.6 million in 2021 compared to US$4.3m in 2022, with growth of 20%
  • Crowdsourced data revenue was US$3.5 million in 2021 compared to US$4.2m in 2022, with growth of 19.8%

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

Woodward says, “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.

Demand for AI technologies and associated market growth is closely tied to organisational demands.

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

However, the reality of AI deployment is much more limited, the analysts state.

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

Gartner 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, the analysts state.

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