Global Artificial Intelligence in social media market to reach $5.6 billion by 2028, report
The Artificial Intelligence (AI) in Social Media market is gearing up for a remarkable surge, with estimations indicating a substantial escalation from $1.64 billion in 2023 to an impressive $5.66 billion by 2028. This growth trajectory translates into a striking Compound Annual Growth Rate (CAGR) of 28.04% over the forecast period (2023-2028). This is according to a report by Research and Markets.
Social media has morphed into a goldmine of customer intelligence data, catalyzing the demand for AI solutions capable of extracting valuable insights from this vast repository. The burgeoning population of social media users is fueling the need for advanced AI tools to unravel intricate customer preferences, thereby catalyzing market expansion.
Effective Advertising through AI Integration: The convergence of artificial intelligence with social media platforms is redefining advertising paradigms and propelling market growth. The Banking, Financial Services, and Insurance (BFSI) sector is witnessing substantial investments in AI-driven chatbots and assistants, enhancing customer engagement and experience.
E-Commerce Revolution: E-commerce entities are leveraging AI's prowess to curate personalized product recommendations for users, enriching their social media interactions. Industry giants like Amazon are spearheading this trend by incorporating AI-powered product recommendations throughout the buying journey.
AI's Response to the Pandemic: AI's transformative potential in addressing global challenges is underscored by its role in predicting the spread of COVID-19 infections. By harnessing data from social media platforms, AI has enabled early warning systems, pinpointed sensitive locations, and even forecasted illness and mortality rates.
The retail sector is poised for a revolutionary overhaul, driven by the burgeoning utilization of social media for online shopping and other e-commerce activities. AI-driven social media strategies empower retailers to forecast market trends, optimize promotional campaigns, and elevate customer interactions. Collaborative ventures between tech behemoths like Google and fashion giants such as H&M Group and ASOS epitomize this transformative trend.
North America stands as a trailblazer in AI adoption, bolstered by substantial governmental investments and corporate initiatives. Dynamic partnerships between tech pioneers and startups, like Google's strategic collaboration with Cohere Inc., are invigorating the region's AI ecosystem. The region's top-ranking position in the government's AI readiness index reflects its unwavering commitment to embracing AI advancements.
The AI in Social Media domain is a battlefield of intense competition, with industry titans including Microsoft Corporation, Google LLC, and Amazon Web Services leading the charge. Innovation takes center stage as these market leaders engineer strategic alliances, amplify product portfolios, and drive growth through mergers. Recent partnerships, such as Google Cloud's synergy with Snap Inc., underscore the relentless pursuit of superior customer experiences and tailored solutions.
