North America Artificial Intelligence Market Report and Forecast 2024-2032

North America Artificial Intelligence Market Outlook

The North America artificial intelligence market size reached approximately USD 45.90 billion in 2023. The market is projected to grow at a CAGR of 25.7% between 2024 and 2032, reaching a value of around USD 337.83 billion by 2032.

Key Takeaways

Artificial intelligence is a discipline of technology under which computer systems can perform tasks that are on par with human intelligence and cognitive skills such as decision-making and reasoning, among others. It can aid with complex problem-solving solving, provide automation of routine tasks, and offer data analysis assistance.

The North America artificial intelligence market expansion is being aided by the development of learning machines, rising availability of data, and surging storage and computing capabilities. The increasing application of AI in fraud detection, virtual customer assistance (VCA), and automotive innovations are aiding the market growth.

The military sector is also harnessing the capabilities of AI in its weapons and equipment such as drones, grenades, surveillance systems, aerial vehicles, and missiles, among others, to offer remote functionalities and enhanced protection to military personnel.

Key Trends and Developments

Rising adoption of large language models (LLM), growing popularity of AI avatars, increasing application of AI in the military sector, and surging deployment of AI in e-commerce channels are the major trends impacting the market growth

North America Artificial Intelligence Market Trends

Market players in the region are increasingly launching new AI-based products for the e-commerce sector to offer a better shopping experience. For example, in January 2024, Google Cloud, based in the US, launched several GenAI products such as Conversational Commerce Solution that allows shoppers to chat with AI-powered agents in natural language.

The burgeoning popularity of AI avatars, which construct the digital image of a human in a virtual setting, to offer an immersive experience is a prominent trend supporting the North America artificial intelligence market growth. They can be used for the purpose of video chatbots, virtual brand representatives, virtual customer agents, and game characters, among others.

Market Segmentation

The EMR’s report titled “North America Artificial Intelligence Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Natural language processing is further bifurcated based on type into natural language understanding (NLU) and natural language generation (NLG). Meanwhile, generative AI is further divided based on type into generative adversarial networks (GANs), transformers, variational auto-encoders, and diffusion networks.

Machine Learning Occupies a Significant North America Artificial Intelligence Market Share, Due to Its Use in Image and Voice Recognition

Machine learning occupies a significant portion of market share, due to the growing usage of machine learning in voice recognition systems such as Amazon Echo. Image recognition is another prominent application of ML, which uses deep learning models to recognise images from visual data sets.

This technology is further utilised to map the unusual behaviour of people in video surveillance and create an alert for the security personnel and guards in that area to prevent any potential incident. Furthermore, it can be used to offer post suggestions on social media platforms, depending upon the user behaviour.

The deployment of AI in the media and entertainment sector is growing, aided by the increasing demand for personalised recommendations

As per the North America artificial intelligence market analysis, the media and entertainment sector accounts for a major market share as filmmakers and scriptwriters are relying on AI to generate valuable insights from box office hits and audience choices for their next scripts. Streaming platforms such as Amazon Prime, Hulu, and Netflix, among others, use AI algorithms to study user behaviour and offer them personalised recommendations.

Moreover, the healthcare sector is also anticipated to gain robust growth in the coming years, due to the growing usage of AI-based robots in surgery assistance. Meanwhile, in the retail sector, artificial intelligence is used to reduce shrinkage, optimise business processes, and forecast, inform, and process data to support retailers make data-driven business decisions.

Competitive Landscape

Some of the leading North America artificial intelligence market players analysed in the market study are

Other key players included in the North America artificial intelligence market are Microsoft Corp., Amazon Web Services, Inc., Cisco Systems, Inc., Alphabet Inc., Intel Corporation, International Business Machines Corporation., Oracle Corp., SAP SE, Meta Platforms Inc., Hewlett Packard Enterprise Development LP, and SAS Institute Inc., among others.

North America Artificial Intelligence Market Analysis by Country

The United States of America accounts for a significant portion of the North America artificial intelligence market share as it is home to leading companies such as Apple, Microsoft, Google, and Intel. Extensive venture capital fundings and private investments in AI startups in the country also supports the market expansion. In addition to this, the US is a leading developer of computer chips and traditional semiconductors that play an integral role in AI systems.

Governments in the country are also introducing various initiatives to expand and improve AI talent. For instance, in May 2023, the US National Science Foundation collaborated with educational institutions, federal agencies, and stakeholders to invest USD 140 million for the establishment of seven National Artificial Intelligence Research Institutes to diversify the AI workforce in the country.

Meanwhile, Canada houses a vibrant artificial intelligence (AI) ecosystem encompassing generative AI vendors, venture capital firms, AI enterprises and start-ups, and research labs. Increasing research and development (R&D) activities aimed at advancing AI, deep AI talent pool, and rising number of AI patents in the country are positively influencing the overall North America artificial intelligence market.

Key Highlights of the Report