The market for Artificial Intelligence (AI) spans a wide range of applications, including speech recognition, image analysis, and autonomous systems. Driven by technological innovation and increasing investments, the industry is experiencing dynamic growth.
Market Size & Investment Landscape
Market Size
The AI market includes software, hardware, and services that enable companies to develop and successfully implement advanced AI solutions. The global market for Artificial Intelligence is currently valued at around 244 billion US dollars and, according to renowned market research firms, is expected to grow to over 1 trillion US dollars by 2031. The United Nations (UN) even forecasts an increase to 4.8 trillion US dollars by 2033 – a 25-fold growth within a decade (since 2023).
Investment Landscape
Investments in the growth of young companies, particularly through venture capital (VC), are especially relevant for future developments, as they bring innovative approaches and AI products and services to the market. The USA leads the global ranking in AI private investments in 2024, with approximately 109.08 billion US dollars (rank 1), far ahead of China with around 9.29 billion US dollars (rank 2) and Germany with about 1.97 billion US dollars (rank 7).
Innovation Ecosystem Silicon Valley
With the Silicon Valley innovation ecosystem right at our doorstep, we monitor technological developments in real time and connect German companies with leading AI startups, research institutions, and tech corporations. In 2024, startups from Silicon Valley raised around 57% of all venture capital invested nationwide in the USA, rapidly accelerating progress in the AI market.
Why AI is now relevant for SMEs
Our AI expert group supports medium-sized companies and startups in strategically and responsibly leveraging the potential of Artificial Intelligence. Our focus is on the practical application of AI in business, ranging from generative AI to support innovation processes, marketing activities, or predictive maintenance, to smart customer service and production automation.
- Studies show that companies using AI strategically can increase their productivity by up to 20% – through automation, process optimization, and data-driven innovation.
- According to Bitkom, 90% of German companies consider Artificial Intelligence to be decisive for competitiveness.
- At the same time, 64% see themselves as laggards in AI adoption, and only 17% are already using AI productively.
- 61% plan to use AI in their internal business operations.
- 34% are already using AI for products or services or plan to do so in the near future.
While the USA and China are global leaders in AI investment and development, it is crucial for German companies to take action now to secure their long-term competitiveness.
