Artificial intelligence (AI) toolkit market is anticipated to grow at a significant CAGR of 16.9% during the forecast period (2024-2031). The market growth is attributed to the growing adoption of technological advancement in artificial intelligence (AI) toolkits such as natural language processing, machine learning, computer vision, and robotic process automation to improve the optimization process globally driving the growth of the market. AI toolkitapplications are increasingly common in a wide variety of industries, including healthcare, finance, retail, and manufacturing.According to the Artificial Intelligence Index Report 2022, in 2021, global private investment in AI totaled around $93.5 billion, which is more than double the total private investment in 2020. The greatest adoption was in product and/or service development for high tech/telecommunications (45.0%), followed by service operations for financial services (40.0%), service operations for high techtelecommunications (34.0%), and risk function for financial services (32.0%).

Market Dynamics

Increasing expansion of AI through AutoML (Automated Machine Learning) tools

The growingexpansion of AI through AutoML (Automated Machine Learning) toolsautomates the tasks of applying machine learning to real-world problems. It significantly reduces or even eliminates the need for skilled data scientists to build and tune machine-learning models.The entire machine learning process, which often entails difficult phases of model selection, composition, and parameter tweaking, is made simpler with AutoML. These steps are much easier to handle through automation, allowing for effective and ideal model creation even in the absence of a thorough comprehension of the underlying methods.By enabling greater accessibility and user-friendliness, AutoML platforms democratize machine learning.

Natural Language Processing (NLP) Advancements

AI toolkits with NLP capabilities enable the development of these chatbots, improving customer service. Retail and eCommerce companies use AI toolkits for fraud detection and prevention. Machine learning models can analyze transaction data to identify suspicious activities and protect against fraudulent transactions.AI in eCommerce has opened up new possibilities that allow businesses to gain insights, optimize operations, offer exceptional and personalized experiences, and drive growth. AI-powered chatbots and virtual assistants use Natural Language Processing to understand human input and respond in a human-like manner.Unlike human beings, they can offer 24/7 support, significantly increasing response times and improving customer satisfaction.

Market Segmentation

Our in-depth analysis of the global artificial intelligence (AI) toolkit market includes the following segments bytechnology,offering, and industry vertical.

• Based ontechnology, the market is sub-segmented into natural language processing, machine learning, computer vision, and robotic process automation.

• Based on the offering, the market is sub-segmented into software, hardware, and services.

• Based on industry vertical,the market is sub-segmented into BFSI, retail &e-commerce, healthcare & life sciences, manufacturing, IT &telecom, energy & utilities, government &defense, automotive, transportation, & logistics, media & entertainment, and others (education, travel & hospitality, construction & real estate, and agriculture).

Machine Learningis Projected to Emerge as the Largest Segment

Based on thetechnology,the global artificial intelligence (AI) toolkit market is sub-segmented into natural language processing, machine learning, computer vision, and robotic process automation.Among thesemachine learning,the sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includesthe development of machine learning platforms, including reinforcement machine learning algorithms, supervised machine learning algorithms, unsupervised machine learning algorithms, and others.  For instance, in May 2021, Google Cloud introduced Vertex AI, a managed machine learning (ML) platform that allows companies to accelerate the deployment and maintenance of artificial intelligence (AI) models. Vertex AI requires nearly 80.0% fewer lines of code to train a model versus competitive platforms1, enabling data scientists and ML engineers across all levels of expertise.

Software Sub-segment to Hold a Considerable Market Share

Based onoffering,the global artificial intelligence (AI) toolkitmarket is sub-segmented intosoftware, hardware, and services.Among these, the softwaresub-segment is expected to holdaconsiderable share of the market.The segmental growth is attributed to the increasing software solutions that provide cost-efficiency by offering subscription-based models and reducing hardware, software licenses, and enterprise connections.For instance, in April 2022,Digital.ai introduced the AI-powered DevSecOps software Platform. The new release dubbed Ascension empowers both private and public sector organizations to unify, secure, and generate predictive insights across the software lifecycle, increasing business value with integrated software delivery, and driving down technical debt through enterprise connections.

Regional Outlook

The globalartificial intelligence (AI) toolkit market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia-Pacific), and the Rest of the World (the Middle East & Africa, and Latin America). 

Increasing Adoption of Artificial Intelligence (AI) Toolkitin Asia-Pacific

• In emerging like China and India, the use of Artificial Intelligence (AI) Toolkit is rapidly growing. The industry's demand for artificial intelligence is growing as a result.

• According to the Ministry of Foreign Affairs, the People's Republic of China, in November 2023, the AI industry is developing rapidly and has become a new engine for the country’s economic growth. In 2022, the number of AI companies in China exceeded 4,300. The value of the industry was higher than 500.0 billion yuan ($69.7 billion).

Global AI Adoption By Organizations, 2020-21 by Region (%)

Source:Artificial Intelligence Index Report, 2022

Global Artificial Intelligence (AI) Toolkit Market Growth by Region 2024-2031

North America Holds Major Market Share

Among all the regions, North America holds a significant share owing to numerous prominent companies and artificial intelligence (AI) toolkit providersin the region. The growth is mainly attributed to the growing numbers of AI startups with increasing adoption of AI technologies in large industries and IT infrastructure, government regulations regarding data security, and cloud application and security information services contribute the regional growth. According to the U.S. Census Bureau, in November 2023, Businesses in the information sector reported greater levels of AI use than the national averageof 13.8% of businesses indicated that they were currently using the technology.Only 3.8% of businesses reported using AI to produce goods and services, according to the most recent Business Trends and Outlook Survey (BTOS). Additionally, increasing government investment in research and development of AI in the region. For instance, in May 2023, The U.S. National Science Foundation, in collaboration with other federal agencies, higher education institutions, and other stakeholders, today announced a $140.0 million investment to establish seven new National Artificial Intelligence Research Institutes. The announcement is part of a broader effort across the federal government to advance a cohesive approach to AI-related opportunities and risks.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global artificial intelligence (AI) toolkitmarket include Amazon Web Services, Inc., Google LLC, IBM Corp., Microsoft Corp., and NVIDIACorp., among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in February 2024, Wipro and IBM Corp. expanded partnership to offer new AI Services and support to clients. The Wipro enterprise AI-ready platform leverages the IBM Watsonx AI and data platform, including watsonx.ai, and watsonx. data, and watsonx. governance and AI assistants, to deliver to clients an interoperable service that helps accelerate AI adoption.

Recent Development

• In January 2024, the European Commission launched an AI innovation package to support artificial intelligence startups and SMEs. The Commission through Horizon Europe and the Digital Europe programme dedicated to generative AI. This package generates an additional overall public and private investment of around €4.0 billion ($4.3 billion) until 2027.

• In July 2023, NEC Corp. developed generative artificial intelligence (AI) that is customizable for each customer to create new value for companies in response to business changes caused by new technologies. The new "NEC Generative AI Service" provideslicenses for proprietary large language models (LLM), dedicated hardware, software, consulting services, and more.

• In May 2022, SK Telecom launched an AI service named ‘A. (A dot)’ as an open beta version for Android on One Store and Google Play. ‘A’ embodies SKT’s vision of an AI Service Company that realizes greater value and convenience in customers’ daily lives through warm, human-centred technologies and services.

The Report Covers

• Market value data analysis of 2023 and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global artificial intelligence (AI) toolkit market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.