Observed Signal · Mar 1, 2023 · Market Forecast · Source: Trending Topics · Impact: 2/5 · Sentiment: Neutral
AI Industry Predicted to Reach $90 Billion by 2025
UBS Global Wealth Management forecast that the artificial intelligence market, covering hardware and services, would grow from $36 billion in 2020 to $90 billion by 2025, with annual growth of around 20%. The forecast builds on the rapid adoption of ChatGPT, which reached 100 million users in two months, and on rising enterprise and government interest in chatbots and generative AI. UBS believes the early success of chatbots could attract technology talent and drive faster adoption, potentially reopening venture capital and private equity investment after a subdued period. The report also notes that tech trends often follow hype cycles, citing Gartner's view that generative AI may need two to five years to reach a plateau. For comparison, the article notes that search engine advertising was worth about $260 billion worldwide in 2022, projected to reach $435 billion by 2027.
AI market size forecast is relevant to AI adoption across industries, including adtech and martech, but lacks a specific product launch, regulation, or company milestone.
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Key Takeaways & Evidence Grounding
- UBS Global Wealth Management forecast the AI market to reach $90 billion by 2025, up from $36 billion in 2020.
- IDC and Bloomberg calculated the 2020 AI market size at $36 billion.
- ChatGPT reached 100 million users within two months, faster than Instagram or TikTok.
- UBS expects AI growth to be driven by technology talent attraction and faster enterprise and government adoption.
- Gartner expects generative AI to need two to five years to reach a plateau.
Connected Companies & Entities
5 Entities mapped“The market for artificial intelligence will grow from $36 billion in 2020, as calculated by IDC and Bloomberg....”
“The market for artificial intelligence will grow from $36 billion in 2020, as calculated by IDC and Bloomberg....”
“Hardly any IT company today can afford not to work in some way either with open AI tools or on their own AI solutions – see Meta and Snapcha...”
“According to market researcher Gartner, it will take between two to five years for generative AI to reach a plateau....”
“The new figure of $90 billion comes from UBS Global Wealth Management....”
Ontology Mapping & Concepts
Related Market Signals & Shifts
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