Glance at the Artificial Intelligence and Machine Learning Market
Artificial Intelligence (AI) and Machine Learning (ML) are no longer just buzzwords but critical drivers of innovation and market expansion across various industries. As businesses increasingly harness the potential of AI and ML to develop new products and services, accelerated adoption of AI and ML technology is fueling significant economic growth. Recent market research by Statista projects the AI market to reach US$184bn in 2024, with a robust annual growth rate (CAGR) of 28.46% leading to a market volume of US$826.7bn by 2030. Similarly, the ML market is expected to grow to US$79.29bn in 2024 and soar to US$503.4bn by 2030, with a CAGR of 36.08%. These statistics underscore the pivotal role of AI and ML in advancing not only technology but society at large.
This robust growth underscores the strategic importance placed on AI, not just as a technological advantage but as a fundamental pillar for future business models and economic success. As companies continue to prioritize AI integration, the latest AI and ML trends are expected to exhibit formidable growth, innovation, and increased productivity in the years ahead.
- Multimodal AI - Multimodal AI integrates multiple forms of data such as text, images, and sound to enhance the decision-making capabilities of AI systems. This trend highlights a shift towards creating more human-like AI that can understand and interact with the world in a more holistic manner. Industries from healthcare to customer service are poised to benefit from these advancements.
- Agentic AI - 2024 is set to welcome AI agents that act independently rather than merely responding to instructions. This proactive form of AI can automate complex tasks such as environmental monitoring and financial management, offering both efficiency and precision without constant human oversight.
- Open Source AI - The democratization of AI through open source projects is reducing barriers to entry and fostering innovation across the tech landscape. Open-source AI platforms enable collective problem-solving that is both cost-effective and expansive in scope, contributing to a more inclusive AI development environment.
- Retrieval-Augmented Generation - To combat the issue of AI "hallucinations," retrieval-augmented generation (RAG) combines generative models with external data sources to improve response accuracy. This trend is crucial for applications where reliability is paramount, such as in legal and medical diagnostics.
- Customized Enterprise Generative AI Models - Businesses are increasingly favoring bespoke AI solutions tailored to their specific operational needs over generic models. This approach not only enhances performance but also addresses unique challenges that off-the-shelf models may not effectively resolve.
- Shadow AI - The rise of Shadow AI, where AI tools are used without explicit organizational approval, highlights the need for robust governance frameworks to manage AI use responsibly while fostering innovation.
M&A Trends within AI & ML space in 2024
Leading providers in the Microsoft Dynamics market are focusing on enhancing the customer experience and catering to the diverse needs of end-users by creating customized solutions.
Despite economic uncertainties, the AI sector is experiencing a "new gold rush" in M&A activity. Companies are targeting AI-driven acquisitions to capitalize on innovative technologies and talented teams. The Artificial Intelligence (AI) market is surging in both the United States and Europe, signaling a significant shift towards the adoption of advanced technology in mainstream business operations. In Europe, the market is expected to achieve a remarkable size of US$46.67bn by 2024, with an anticipated compound annual growth rate (CAGR) of 28.44%, which could elevate the market volume to US$209.50bn by 2030, as reported by Statista. These figures point to a vibrant, rapidly expanding European AI sector.
Comparatively, the United States is projected to lead with the largest market size of US$21.14bn as early as 2024. The growth trajectory suggests an explosive increase of at least 120% year-over-year, a testament to the aggressive expansion and integration of AI in various industries. Trends for 2024 suggest a move towards smaller, strategic deals that offer unique value and fit well within broader corporate strategies. Additionally, joint ventures and minority investments are becoming more popular as firms seek to mitigate risks associated with high capital costs and regulatory complexities.
Notable Acquisitions in AI and ML sector
The Artificial Intelligence (AI) and Machine Learning (ML) sectors have seen a flurry of strategic acquisitions as companies across the globe strive to harness these technologies to drive innovation and maintain competitive edges. Here we explore a few impactful acquisitions from around the world that highlight the dynamic movements within the AI and ML landscapes, showcasing how these strategic decisions are set to reshape industries in Asia Pacific, Europe, and the United States. These notable transactions not only reflect the growing importance of AI and ML in transforming various industries but also signify a larger trend towards the consolidation of expertise and resources in the tech sector.
Amplify Health, a pan-Asia joint venture between AIA Group Limited and Discovery Group Limited, has acquired AiDA Technologies, a leading provider of enterprise artificial intelligence (AI) solutions in Asia Pacific. This partnership is believed to enable both organizations to build greater expertise, financial resources, and broader distribution networks, thereby amplifying their impact and driving technological advancements across the region. This strategic partnership not only strengthens Amplify Health's technological foundation but also ensures that AiDA's innovations reach a wider audience, ultimately fostering a healthier Asia Pacific.
Bain & Company, a global management consulting giant, significantly enhanced its capabilities in artificial intelligence and machine learning with the acquisition of PiperLab, a Madrid-based data science firm. By integrating PiperLab’s expertise and workforce into its Advanced Analytics practice, Bain is expected to not only expand its analytical prowess but also strengthen its ability to deliver comprehensive, cutting-edge AI solutions to clients worldwide. This acquisition empowers Bain to address complex challenges at the intersection of business and technology more effectively, reinforcing its position as a leader in Europe in the consulting industry and bolstering its service offerings in the burgeoning field of generative AI.
Accenture, through its acquisition of Redkite, an emerging force in the data consultancy arena based in London, is poised to bolster its ability to drive transformation through AI-enabled solutions. This acquisition underscores Accenture's commitment to fostering a robust data foundation essential for clients to scale AI applications effectively. It will not only accelerate clients' journeys toward comprehensive AI adoption by addressing data readiness challenges but will also create expansive opportunities for both teams to innovate and navigate the forthcoming technology revolution with adept agility. The combined expertise of Accenture and Redkite is set to empower clients to pivot from AI experimentation to full-fledged, value-driven AI implementation, paving the way for a new chapter in business transformation.
Onix, a distinguished Google Cloud partner, acquired Datametica, a leader in data migration, modernization, and BI/analytics, recognized for its innovative, IP-powered consulting services. This strategic acquisition merges Onix's comprehensive expertise in cloud migration, application modernization, and various Google Cloud services with Datametica's specialized capabilities in data warehousing and analytical workloads for Google Cloud. The acquisition will lead in enhancing generative AI-driven business outcomes through a consolidated and curated data approach. The partnership aims to create a formidable force in the tech industry, promising to accelerate customer value in data and AI transformations. With a combined global footprint in the United States, Canada, UK, Singapore, and India, and a pool of over 1,000 experts in data engineering and machine learning, the new entity is set to offer expansive market coverage and deliver tailored solutions to over 1,800 customers across diverse industries. This union not only fortifies Onix's service offerings but also significantly broadens Datametica's reach, together driving forward their shared vision of enabling enterprise customers to leverage cloud, data, and AI for holistic business transformation.
Mastek, a prominent player in digital engineering and cloud transformation, has acquired BizAnalytica, a leading data cloud and modernization solutions provider based in Boston, USA. This strategic move is set to enhance Mastek’s capabilities in Data Services and Generative AI and extend its access to a skilled pool of data architects and scientists. BizAnalytica’s collaboration with top cloud platforms like Snowflake, Databricks, and AWS underscores their industry standing and expertise. This acquisition aligns with Mastek’s mission to simplify the cloud transformation journey for clients by integrating BizAnalytica’s robust data and modernization capabilities. It positions Mastek to expand its influence in existing markets like healthcare and retail and explore new verticals such as Asset & Wealth Management. The consolidation is poised to deliver enhanced value to clients and drive Mastek’s growth in the competitive digital landscape, affirming its commitment to leading innovation in cloud data and AI-driven transformations.
Future Outlook
The AI and ML sectors are not only thriving but are also fundamentally altering how businesses operate and compete on a global scale. Investment in AI and ML technologies is proving to be a prudent strategy for those looking to stay ahead in a rapidly evolving marketplace. As we look towards 2024, the integration of AI in business strategies coupled with mindful regulation and ethical considerations will likely lead to sustained growth and innovation in various industries. For investors, the dynamic landscape of AI and ML offers exciting opportunities for growth, making it an essential component of future-forward investment portfolios.
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