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Artificial Intelligence Procurement Market Size
The data in ELINT Market Research’s Artificial Intelligence Procurement Market Research Report forecasted a promising future for the global artificial intelligence market. Recent artificial intelligence procurement market research analysis indicates a bright future for the sector, particularly in artificial intelligence software. By 2022–2023, it is anticipated that the global market for AI software will be valued at more than $63.4 billion. Rising investments and a growing need for contemporary AI technologies drive this expansion. Artificial Intelligence (AI) is becoming more popular globally, especially in industrialized nations where companies can use it to maximize output while reducing resource use.
The latest industry analysis of the artificial intelligence procurement market research report covers several dynamic elements influencing its trajectory. Future growth is well-positioned thanks to the abundance of training datasets, advances in machine learning methods, and the broad use of AI applications in healthcare, banking, manufacturing, and retail sectors. Additionally, there’s a noticeable focus on using AI-driven automation solutions to streamline processes and save expenses to propel industry advancement. Businesses, investors, and stakeholders are drawn to the attractive prospects in the global AI industry, which indicates that the industry will continue to grow and innovate.
Market Definition
Artificial intelligence is the broader aspect of modern technology that contributes easy and quick access to the natural processes of human intelligence following technological advancement. Such processes can permit human intervention in self-correction and learning on top of reasoning. The issue of artificial intelligence is based on trying to develop systems supporting specific scales of autonomy ranging from tasks that depend solely on human intelligence at whatever level, simple or complex.
Artificial Intelligence Procurement Market Drivers
- Automation Demand: The heightened demand for automation puts an ever-greater premium on streamlining processes to achieve efficiency while reducing operational costs.
- Rising Investments: Most people have seen increased spending and investment from the public and businesses to stimulate innovation within the AI industry.
Artificial Intelligence Procurement Market Challenges
- Data Security and Privacy: Data underlay the base from which the AI systems come. They face a few complex challenges concerning data security and privacy, and there is even ethical use of data.
- Regulatory Barriers: The highly dynamic nature of regulatory frameworks at all points and compliance requirements indeed make it hard to integrate AI technologies with legal and ethical standards within which it should work.
Artificial Intelligence Procurement Market Opportunities
- Autonomous Vehicles: AI-enabled high-level autonomous vehicles will create an exclamation point in the record books of transportation networks in that the percentage of mobility will be on the top, and accident rates will plummet.
- Smart Manufacturing: Leveraging artificial intelligence capability in quality control, predictive maintenance, communication, and supply chain optimization.
Artificial Intelligence Procurement Market Segmentation
- Technology: The research report segments the market based on technology—Natural Language Processing (NLP), Machine Learning, Computer Vision, Robotics, and Expert Systems.
- Application: In this market, the application is or has been segmented into Healthcare, Finance, Retail, Automotive, Manufacturing, Agriculture, Gaming, and Cybersecurity.
- Deployment: As per deployment, the research report segments the market into On-Premises and Cloud-based.
- End-User: According to the end-user, the research report classifies the market into Enterprises, Small and Medium-sized Enterprises (SMEs), Government and Defense, Healthcare Providers, and Education.
Regional Outlook of the Artificial Intelligence Procurement Market
The global landscape paints a rather vibrant trajectory in the artificial intelligence procurement market driven by ever-engaging market sizes across the regions. The United States has a firm grip on capitalizing on significant investments in AI and inventive advancements. Europe has a valuable industry of $161.8 billion but is expanding quickly despite still pulling back North America. This year alone, the market is on course to reach $14.6 billion, with the added value attributed to government initiatives for elevating tech literacy levels in the Asia-Pacific (APAC) region. It, when taken in conjunction with all of these figures, reflects the building of international recognition for the potential of AI to change many industries.
Despite such geographic variations, the artificial intelligence procurement market continues on a high track, showing no sign of slowing down. A high-tech, sophisticated ecosystem in North America has placed the region as the leading region in AI globally, supported by top big technology, an intense start-up scene, and underlying laws. Europe represents the core of the global scene for Artificial Intelligence investments and initiatives to nurture AI innovation. Above all, the emergence of artificial intelligence has led to the restructuring of the manufacturing sector and the health sector transformation in the Asia-Pacific region, having watched the digitalization penetration and growth in the region at a very rapid pace, also paralleling the expansion of their economies. ELINT uses modern procurement intelligence tools to provide the most authentic procurement market intelligence.
Cost Component in the Artificial Intelligence Procurement Market
Businesses that want to use artificial intelligence (AI) must know the associated costs. Developing software, developing hardware and infrastructure, acquiring talent, gathering and preparing data, and providing ongoing maintenance and support are the main financial factors in the AI market. The costs associated with continuing maintenance and support include updating and supporting AI systems and debugging them. Talent acquisition costs mainly focus on hiring skilled professionals, such as AI engineers, data scientists, and domain experts, to plan and manage AI projects.
Pricing Outlook in the Artificial Intelligence Procurement Market
The competitive landscape, regulatory environment, technological advancements, and demand dynamics influence the price forecast for the artificial intelligence procurement market. With AI used in more and more industries, the market is witnessing a trend toward value-based pricing models, where the cost is determined by the perceived value provided to consumers. Subscription-based pricing models are increasingly prevalent, providing consumers with fixed costs and flexibility.
Contract Period in the Artificial Intelligence Procurement Market
Contract lengths in the artificial intelligence procurement market typically vary based on the nature of the AI solution and the interests of the parties involved. Short-term contracts, ranging from a few months to a few years, are standard for pilot programs or projects with well-defined goals. Because these contracts are flexible, businesses can assess the efficacy of AI technologies before committing to long-term partnerships. However, lengthy contracts spanning several years may be preferred for significant AI deployments requiring a large investment in infrastructure, training, and integration.
Engagement Strategies in the Artificial Intelligence Procurement Market
Companies operating in the industry must switch engagement strategies to land on their most productive processes to gain higher returns on their overall investments. They can access expertise, maximum resources, and critical knowledge by collaborating with leading technology providers and AI vendors. In addition, it is also crucial to communicate regularly with stakeholders to resolve their queries and promote more transparency.
Pricing Models in the Artificial Intelligence Procurement Market
Businesses can choose to work on their sustainable pricing method from the array of strategies prevalent in the industry. One standard method is pay-per-use or consumption-based pricing, where one is charged based on how much or how often they use AI. Regarding a subscription model, it offers the prepaid mode and the structure of fixed-cost payouts. In hybrid models, users can select a combination of more than one pricing template. It makes it interchangeable and refers to recognizing different usage patterns and value propositions.
Negotiation Factors in the Artificial Intelligence Procurement Market
Some essential standard points for such negotiation include price, conditions of payment, level of support services in an agreement, intellectual property rights, ownership, security, and means of exiting, the primary standard determinants of such negotiations. In any attempt to acquire AI technologies, the corporation is further encouraged to negotiate in the best way terms and conditions, which will not only further simplify the risks but also maximize value and expense. A well-documented and definite service level agreement (SLA) with parameters and expected performance ranges, such as guarantees of uptime and penalties if the AI service does not meet those conditions.
Leading Players in the Artificial Intelligence Procurement Market
Significant names in the artificial intelligence procurement market include Microsoft, IBM, Google, Wipro, Infosys, and so on, facilitating the progress and globalization of AI technology to a larger scale. ELINT follows multi-level artificial intelligence market research, that is, business strategies of the prominent industry leaders and competitive initiatives to access deep detail.
