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29 Shocking AI Revenue Statistics [2020 Edition]

The thought of artificial intelligence taking over the world once invoked a sense of fear, as any fan of 1970s dystopian films will tell you. 

Now, though, a sense of excitement accompanies it. 

But just what does the future of artificial intelligence look like? What is the AI market size? What percentage of USA GDP is spent on AI? What do AI revenue statistics say about the current state of the industry and the projected AI revenue growth rate

You’ve got the questions, we’ve got the answers. 

Let’s dive right in.

Fascinating AI Revenue Facts and Stats (Editor’s Choice)

  • AI is set to replace 16% of the US workforce by 2030. 
  • The global AI software market size is expected to reach $126 billion by 2025.
  • The AI market size has grown by 154% in the past 12 months.
  • Demand for AI talent has more than doubled in the past 24 months.
  • The AI adoption rate of organizations has increased by 270%. 
  • The forecast indicates an AI growth rate of 55.6%.
  • One-sixth of 1% of US GDP will be spent on AI. 
  • The top 3 countries spending the most on AI technology are China, the US, and the UK.

AI Market Size Statistics

By now we all know that AI is a thing. But just how big of a thing is it? We’ll let these stats do the talking. 

1. AI retail market size expected to grow by 35.4% 

(P&S Intelligence)

In 2018, the AI retail market size was valued at a cool $720 million and is set to see further growth of 35.4% in the next four years. 

What makes the AI retail market size so large? 

Investments in machine learning, natural language processing, and analytics take up a large chunk of the AI market. 

2. 97% of smartphone owners use AI-powered voice assistants. 

(Creative Strategies)

To put the focus on the consumer for a second, AI statistics show that nearly all smartphone owners use voice assistants powered by AI. Interestingly enough, fewer Android users have tried voice assistants than iPhone users, with 4% of users never using OK Google. In contrast, only 2% of iPhone users haven’t tried Siri. 

3. 75 countries now use AI for surveillance purposes. 

(Forbes)

Additionally, global artificial intelligence statistics show that 64 countries are using facial recognition systems, 56 countries are using smart city platforms, and 52 countries use smart policing. 

4. The AI world market size has grown by 154% since 2018. 

(Statista)

In the space of 12 months, the AI world market size has grown by a staggering 154%. The AI adoption rate amongst big companies such as Microsoft, Nvidia, Amazon.com, Intel, Google, and IBM is a huge contributing factor in this. 

5. Global AI software market size expected to reach $126 billion in the next five years   

(Tractica)

The market is absolutely enormous, and it’s only going to go from strength to strength over the next five years. 

But what do the AI revenue statistics of 2020 look like? 

6. AI revenue 2020 is set to surpass the $22 billion mark. 

(Statista)

AI revenue statistics for 2018 show a revenue of $9.51 billion, while 2019 data that is yet to be confirmed shows $14.69 billion. So, it’s safe to say that AI revenue 2020 will be around the $22.59 billion mark.

Global AI Spendings

AI is generating a lot of revenue and shows no sign of letting up in the foreseeable future. 

The only questions we need to ask is: 

Who is doing the spending and how much are they spending? 

The answer to these questions can be found in the AI spending statistics we’ve outlined below.  

7. The fastest AI spendings growth will be seen in the media industry.

(ADT Mag)

Just because the media industry isn’t spending the most on AI, it sure is spending the fastest. Companies in the media industry are forecast to see amazing growth of 33.7%. The second fastest spenders on AI are federal and central governments, which lost the title of fastest spenders by a mere 0.1%.  

8. Artificial intelligence spending will more than double by the end of the year.

(IDC)

Artificial intelligence spendings trends suggest that by the time 2020 is up, AI spendings will grow by more than two and a half times from the 2019 figure. Those are definitely not rookie numbers.     

9. One-sixth of 1% of US GDP will be spent on AI. 

(The White House)

Every taxpayer wants to know where their money is going. So, what percentage of USA GDP is spent on AI. While one-sixth of 1% doesn’t sound like a lot, it amounts to approximately $973 million. 

But it’s not just America that is spending all this money on AI… 

10. In 2017, China spent $12 billion on AI systems. 

(Deloitte)

Wondering what AI investment by country looks like? The top 3 countries spending the most on AI technology are China, the US, and the UK. It’s estimated that in 2017 alone, China spent $12 billion on AI systems. 

11. The retail and banking industries are both set to invest more than $5 billion in AI.  

(IDC)

The top 5 industries that are spending the most on AI are the retail and banking industries as well as the healthcare, professional services, and manufacturing industries. The retail and banking industries are both set to invest upwards of $5 billion next year.

AI Market Trends

AI is here to stay if the above AI spending statistics are anything to go by. There’s no denying that 2019 was a great year for artificial intelligence and AI trends made their way into our everyday lives.  

12. The funding of AI startups has more than quadrupled in three years.  

(Statista)

When you perform an AI market growth analysis, the results speak for themselves. From 2015 to 2018, the funding of AI startups has more than quadrupled, with 2018 ending with $18.8 billion awarded to AI startup companies.  

13. The artificial intelligence market forecast suggests a growth rate of 55.6%.

(AlliedMarketResearch)

The worldwide artificial intelligence market forecast indicates an AI growth rate of 55.6%, making it one of the fast-growing technologies in the last few years.  

14. Facial recognition AI is to boost overall AI growth rate by more than 20% in 2020 alone. 

(Global News Wire)

Facial recognition is one of the biggest AI trends to have been adopted by mainstream technology users. In terms of revenue, facial recognition is forecast to increase the annual AI growth rate by more than one-fifth in 2020.   

15. AI job listings in the UK have increased by 485% since 2014. 

(MMC Ventures)

AI job listings in the UK have mushroomed. The unprecedented AI growth rate means that more organizations are looking for AI talent. The technology and financial services sectors gobble up 60% of all AI talent. In fact, the demand has doubled in the past 24 months. 

And who says AI doesn’t create jobs? More on that after this next AI market growth statistic!  

16. AI adoption rate has increased by 270%.

(Gartner)

Just four short years ago, only 10% of organizations were using AI or considering implementing it. Fast forward to 2019, and 37% of organizations are using AI. This 270% increase in the AI adoption rate is expected to grow even more in the next 12 months.  

And as a result of the AI adoption rate, American employees fear for their jobs.

In fact: 

17. 72% of American adults are concerned that AI will make their jobs obsolete.

(Statista

Nearly three-quarters of American adults are worried about the AI replacing jobs statistics they read about. Not to add fuel to the fire, but their cause for worry is warranted, as reports predict that the US workforce will be reduced by 16% by the time 2030 rolls around.

AI and the Workspace

All this talk of AI revenue statistics and AI spending statistics is all fine and dandy, but just WHY are so many companies invested in AI? What do these companies think AI can do for them? 

Let’s find out. 

18. 75% of businesses believe AI will allow them to move into new ventures. 

(Forbes)

Studies reveal that businesses are keener than ever to expand their business into new ventures. Three-quarters of businesses believe AI will help them achieve this goal. And by this point, we have to agree with them.   

19. Using AI technology reduces call time by up to 70%. 

(Harvard Business Review)

In the business world, time spent on a call is time spent away from making sales. With AI usage reducing call time massively, it’s no wonder why businesses, both big and small, are attracted to what AI has to offer. 

20. 79% of executives feel that AI will make work easier and more efficient… 

(EIU

Many businesses want to invest in AI, and nearly 80% of executives state that their biggest reason is streamlining the workflow.     

21. ….And 54% of executives have proven this to be the case. 

(PWC

Preliminary findings state that over half of business executives believe that AI has already has increased productivity levels within their operations.  

22. Labor productivity can increase by up to 40% with AI’s help.  

(Accenture)

Data indicates that AI technology, when properly implemented, can boost labor productivity significantly. When percentages like that are involved, it’s no wonder AI spending statistics continue to rise. 

23. 64% of B2B marketers consider AI a vital component in their marketing strategies.

(Everstring)

AI has its place in marketing and B2B marketers are well are of this. In fact, nearly two-thirds of B2B marketers feel AI is an incredibly important part of their marketing strategy. 

What’s more:

30.5% of B2B marketers use the technology to identify market opportunities, 25.5% use it to identify customer prospects based on ICP, and 14.4% use it to project future revenue performance. 

AI and the Consumer

Before we wrap this AI statistics article up, let’s bring it back to where it is most important – to the consumer. 

24. 73% of all global consumers are open to the usage of AI by businesses. 

(Pega)

Don’t think that consumers aren’t ready to jump aboard the AI train because they certainly are. Provided that the technology makes their lives easier, a large majority of all consumers are open to the usage of AI by businesses. 

25. 27% of all global consumers feel that AI will provide better customer service than humans can.

(Pega)

When more than one-quarter of all global consumers feel that AI will provide better customer service than humans can, people need to realize that something is not quite right. Businesses should take note and act accordingly.

26. 63% of consumers prefer messaging with chatbots to direct communication with a brand, according to the artificial intelligence market forecast.

(Mindshare)

Close to two-thirds of consumers prefer communicating with brands via chatbots as opposed to direct lines of communication. Give the people what they want.  

27. 33% of consumers use AI technology every day. 

(Statista)

One-third of consumers can think of at least one example of AI technology they use in their lives every day. In the world of business buying, this percentage is significantly higher – 60%.   

It’s not all good news though: 

28. 18% of consumers are scared of AI. 

(PRNewsWire)

While 59% of consumers feel that AI is mainly good with a few unignorable risks attached to it, 18% of people are straight-up afraid of it. An almost equal 15% of consumers feel AI is all good, while the remaining 8% of people are undecided. 

29. 33% of consumers feel that AI will never nail the human aspect. 

(CIO Summit)

When asked to detail their fears about AI, the results were mixed. 24% of people are terrified of robots rising and turning humans into slaves, 10% are worried they’ll find AI to be better company than their friends and family, while 5% are scared of robots uncovering their deepest secrets. Finally, 28% of people can’t articulate what they’re scared of – just that they are. 

Final Thoughts on the AI Market Size

It’s a well known fact that AI is changing the way the world as we know it works. But that might not be a bad thing. 

These AI revenue statistics show just how seriously companies are taking AI and how you better make way for it in your life.  Because it isn’t going anywhere anytime soon, whether you like it or not. 

Do the AI statistics we’ve shared with you today make you feel excited or apprehensive? Let us know down below. 

Sources:

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