Tuesday, July 15, 2025

Global AI Software Market to Reach $126bn Value by 2025

Global AI Software Market to Grow Five Times and Reach $126bn Value by 2025 

1 in 5 workers in a non-routine job will depend on Artificial Intelligence (AI) for at least part of their role, according to forecasts. Many firms across a variety of industries are forced to adopt AI to boost growth as a result of the growing volume and complexity of business data. 

This trend is set to continue over the coming years, with global artificial intelligence software market value jumping from $22.6bn in 2020 to a remarkable $126bn by 2025, according to data gathered by Learn Bonds. 

AI to Become Mainstream Technology 

Artificial intelligence has already begun to transfigure and revolutionize industries across the world, helping businesses to improve their efficiency, quality, and speed. AI helps streamline business operations, decision making, and help predict trends by using automation, deep learning, as well as natural language processing.

Over the years, many of the biggest names in the tech industry have heavily invested in AI acquisitions and AI-related research and development. Companies such as IBM, Microsoft, Google, and Samsung have each submitted thousands of AI patent applications, while AI-related start-ups are rake in billions of dollars in investment each year. 

In 2018, Tradica Artificial Intelligence Market Forecast revealed the value of global artificial intelligence software industry hit $10.1bn. Over the past two years, the market value doubled to $22.6bn. Additionally, in the next few years, there is an expected remarkable growth of the entire AI software industry, with market value lifting more than fivefold by 2025. 

Looked at by region, North America is the leading AI software industry in the world, with giants like Microsoft, IBM, Google leading the market. The North American market is expected to top $9.8bn this year and continue growing to be worth over $51.5bn value in the next 5 years. 

The Asia-Pacific region ranked as the second-largest AI software industry globally, valued at $6.3bn. By 2025, this figure is forecast to grow five times to $32.9bn. The European market, the third largest globally, is expected to jump from $5bn in 2020 to be worth $26.5bn in 2025. 

Digital Workers and Hybrid Workforce 

Software robots and AI automation have already gained a massive role in manufacturing, retail, banking, and insurance. They also play a huge role in investing and lending platforms, where sophisticated computer algorithms make decisions in minutes instead of days. 

The so-called digital workers are already transforming traditional workspaces, performing business tasks like a human worker, only much faster and without mistakes. 

Nearly 75% of those asked said that up to 50% of their current workforce would be significantly impacted by the adoption of intelligent automation technologies, according to KMPG 2019 global survey. 

Although many people consider automation and AI as traditional job killers, the coming years are expected to witness a growing integration between human and digital workers, creating a new hybrid workforce. By taking over routine tasks, digital workers will leave more time for people to manage complex jobs. This new hybrid workforce is expected to reduce costs, improve efficiency, and create better products and services for customers. 

 

For more Technology and Innovation news follow The European Magazine. 

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