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AI software market set to reach new heights next year

A profile of a human brain against a digital background.
(Image credit: Pixabay)

The world looks set to spend more on artificial intelligence-powered software in 2022, propelling the entire AI industry to new heights, new Gartner figures have claimed, although this success will depend on the AI maturity of organizations involved.

The analysts firm estimates total AI software revenue for 2022 could reach $62.5 billion, rising by more than a fifth (21.3%) compared to this year. Enterprises will most likely spend the majority of this money on knowledge management, virtual assistants, autonomous vehicles, digital workplaces and crowdsourced data.

Still, the demand for AI technologies and, consequently, market growth, is directly linked to the maturity levels of firms engaged in AI. As things stand right now, almost half (48%) of CIOs have already deployed, or are planning to deploy, AI and machine learning technologies, in the next 12 months. As promising as that sounds, challenges lie ahead. 

AI bringing business value

Many firms experiment with AI, but when it comes to making it part of standard operations - things get tricky. They get reluctant to embrace the tech, don’t trust it, and find it difficult to justify business value. Gartner doesn’t think most firms will reach the “stabilization stage” before 2025. 

“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. 

“Successful AI business outcomes will depend on the careful selection of use cases,” he added. “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.”

The AI software market comprises of applications with artificial intelligence, such as computer vision tools, chatbots, or various data analytics tools. AI is expected to eliminate numerous repetitive tasks from people’s daily routines, freeing up precious time for higher-value work.