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Artificial Intelligence In Small & Medium Business Market - Forecast(2024 - 2030)
Artificial Intelligence In Small & Medium Business Market Overview
The Artificial Intelligence In Small & Medium Business Market size is estimated to reach $90.68 Billion by 2027, growing at a CAGR of 22.10% during the forecast period 2022-2027 majorly due to the rising adoption of cloud computing technologies in small and medium enterprises sector coupled with the deployment of Internet of Things (IoT) driven solution across the industry. Artificial intelligence plays a vital role in offering supreme customer relationship management solution, primarily in the BFSI sector which tend to propel the growth of Artificial Intelligence in the Small & Medium Business Market industry. For instance, as stated by Personetics, a leading global provider of data-driven personalization and customer engagement solutions for the Financial Services industry that 67% of small businesses want their bank to offer online cashflow management, data analysis, forecasting and budgeting tools to help businesses control their finances and simplify money management. This increasing demand of solutions tends to bring significant growth in the Artificial Intelligence In Small & Medium Business Market share during the forecast period. Moreover, the transformation of the education sector with the deployment of facial recognition technology to increase student engagement and interest increase security use is analyzed to drive Artificial Intelligence in the Small & Medium Business Market in coming years.
Artificial Intelligence In Small & Medium Business Market Report Coverage
The “Artificial
Intelligence In Small & Medium Business Market Report– Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the
Artificial Intelligence In Small & Medium Business Market.
Key Takeaways
- Rising adoption of cloud-based services by small and medium enterprises (SMEs) is analyzed to drive Artificial Intelligence in the Small & Medium Business Market during the forecast period 2022-2027.
- Based on technology, the machine learning segment dominated the global Artificial Intelligence in the Small & Medium Business Market in 2021 owing to the extensive advantages it offers to the end-users which include improved efficiency, catch manufacturing defects, predicting machine failures, reducing unplanned downtime and increasing productivity.
- Artificial Intelligence in the Small & Medium Business Market in the BFSI sector is expected to grow at the highest rate during the forecast period 2022-2027, owing to the increasing adoption of AI to leverage data from multiple sources to make faster as well as accurate decisions and provide individualized frictionless customer experiences in banking.
- Asia-Pacific region is analysed to grow at the highest rate in the Artificial Intelligence In Small & Medium Business Market across the globe during the forecast period 2022-2027, owing to the increasing penetration of AI solutions across various SMEs coupled with rising government investments to boost the small and medium business organizations in this region.
Artificial Intelligence In Small &
Medium Business Mrket Segment Analysis - by Technology
Artificial Intelligence in the Small & Medium
Business Market with Machine Learning technology held the largest share of 43.11%
in 2021 and is analyzed to witness significant growth during the forecast
period 2022-2027. Machine learning helps small and medium enterprises to
improve efficiency, catch manufacturing defects, predict machine failures,
reduce unplanned downtime and increase productivity. Rapid enhancement of
machine learning and artificial intelligence produces the technology more applicable
and accessible to small and medium-scaled businesses. According to the report given by Forbes, AI
and ML systems are being employed by enterprises to provide intelligence to
their security systems. This can help Small & Medium Business in preventing
cyberattacks and respond to suspicious behaviour, which can further aid
cybersecurity teams to be more proactive in preventing threats and responding
to active attacks in real-time. For instance, in 2020, the Indian government in
a major initiative onboarded the latest IT tools of Artificial Intelligence (AI)
and Machine Learning for providing assistance and solutions to Small &
Medium businesses. This multi-modal system has a portal at the virtual level and
technology-equipped physical control rooms at around 69 locations of the
country which tend to contribute significantly to the growth of machine
learning technology in the Artificial Intelligence In Small & Medium
Business Market during the forecast period.
Artificial Intelligence In Small &
Medium Business Market Segment Analysis - by End-user Industry
Artificial Intelligence in the Small & Medium
Business Market in Banking, Financial Services and Insurance (BFSI) sector is analyzed
to grow at the fastest rate with a CAGR of 25.12% between 2022 and 2027. The
growth of artificial intelligence in BFSI industry is majorly driven by the
increasing implementation of innovative design-centric and data-driven products
and services that can transform the small & medium business customer
experience. Artificial Intelligence spurs the digital experience and
utilisation of data that will transform SME banking services. According to
World Bank, small & medium businesses contribute to around 90% of businesses
and more than 50% of employment worldwide. To ensure stability and protection
of SMBs against exploitation, there is a growing demand to smoothen the credit
process which leads to the emergence of fintech. It has emerged as the
game-changers in the country's micro-credit scenario. This fintech is powered by
emerging technologies such as AI, ML and Big Data and is bringing about a
transitional shift in micro-lending for small & medium enterprises which is
analyzed to contribute significantly to the growth of Artificial Intelligence in the Small & Medium Business Market in the BFSI industry during the forecast period.
Artificial Intelligence In Small &
Medium Business Market Segment Analysis - by Geography
Artificial Intelligence In Small & Medium Business Market in Asia Pacific region is analysed to grow at the fastest rate, with a CAGR of 26.34% during the forecast period 2022-2027, majorly driven by the growing governmental programs for the implementation of AI in small and medium enterprises in this region. For instance, in March 2020, the Ministry of Industry and Information Technology (MIIT) in China issued a special action plan for the digital empowerment of SMBs. The Fudan-Ping, a Research Institute for Macroeconomy report confirms the necessity of this action plan and recommends that governments at all levels increase their support to large technology companies that are developing standardized digital services which meet the needs of SMEs and provide tax cuts and financing facilities for SMEs' digital transformation projects. Moreover, increasing government investments in the deployment of various AI technologies in this region tend to contribute significantly to the growth of Artificial Intelligence in the Small & Medium Business Market in Asia-Pacific region during the forecast period.
Artificial Intelligence In Small & Medium Business Market Drivers
The rising adoption of cloud-based services by small and medium
enterprises (SMEs) is analyzed to drive Artificial intelligence in the Small &
Medium Business market:
The rise in the
adoption of cloud-based solutions is a key factor driving the growth of Artificial
Intelligence in the Small & Medium Business Market. This cloud-based solution will help in lowering the adoption costs, facilitates co-creation and
innovation thereby driving AI-powered transformation in Small & Medium
Business. Moreover, the use of AI in the cloud helps in the better synthesis of constantly evolving data systems for
identifying helpful information. Then, this information can be implemented for
practical business use cases. Recently, SMEs have shown a great interest in
including cloud computing in their overall Information technology (IT)
strategies. A recent report by The Science and Information (SAI) on the
adoption rate of cloud service by SMEs informed that, 70% of SMEs have formerly
bought at least two cloud services and 40% have bought six or more cloud
services. At the same time, Dell reports that companies that invest in cloud-based
solutions have witnessed 53% faster revenue growth than their competitors which
tend to promote the growth of Artificial Intelligence in the Small & Medium
Business Market during the forecast period.
Usage of Artificial Intelligence In Small & Medium
Businesses to effectively delegate routine tasks is expected
to drive the Market:
In the past few
years, artificial intelligence (AI) has not only moved to the top of the agenda
for large businesses, but also for small and medium enterprises across the
globe. AI is expected to benefit SMEs, including fighting Covid-19, enabling
resilience and improving green, sustainable growth. AI in Small and Medium
businesses is dominated by various industries such as e-commerce, healthcare
and Insurance. Using AI-powered chatbots, many small and medium businesses with
fewer human resources can offer world-class customer service and support to
their existing and new users and delight them at every point of interaction. In
addition, the AI can also perform some mundane tasks like scheduling business
meetings and many more. For instance, according to the report given by American
Express on 2021, more than 40% of customers demand quicker customer support and Artificial Intelligence can be that tool that can enable small businesses
to fulfill this demand. These advantages offered by AI in SMBs tend to contribute
significantly in its market growth during the forecast period.
Artificial Intelligence In Small & Medium Business Market Challenge
Increasing cyber threats and privacy concerns tend to hamper the growth of Artificial Intelligence in the Small & Medium Business Market:
With the growing
adoption of the digital technologies, the risks of cyberattacks and data breaches
have increased significantly. These cyberattacks may cause huge financial losses
to organizations and consumers. Therefore, tackling this data privacy
and cyberattack issue is a major threat to the global artificial intelligence
market. Small & Medium businesses have become one of the biggest targets
for cyber-attacks in the past few years. As a result of inadequate security and
a lack of awareness and training for staff, they have become easy prey.
According to The Identity Theft Center, data breaches have increased by 38%
since 2021, costing $4.24 million and forcing 78% of companies to re-evaluate
their cybersecurity practices. In the last four years, the financial impact of
cybercrimes has increased heavily and the time it takes to resolve cyberattacks
has doubled. The increase in data from various sources is cumbersome for
several IT teams. The inefficiency of managing exabytes and petabytes of data
has increased the chances of security breaches and data losses. These factors
tend to be a major factor restraining the growth of Artificial Intelligence In
Small & Medium Business Market across the globe.
Artificial Intelligence In Small & Medium Business Market Industry Outlook
Product launches, acquisitions and R&D activities are key strategies adopted by players in the Artificial Intelligence In Small & Medium Business Market Report. The top 10 companies in the Artificial Intelligence In Small & Medium Business Market are:
- Amazon
- IBM Corporation
- Microsoft Corporation
- Google LLC
- NVIDIA Corporation
- SAP SE
- Oracle Corporation
- Hewlett Packard Enterprises Development LP
- SAS Institute Inc.
- Salesforce Inc.
Recent Developments
- In April 2022, Amazon Web Services, Inc.
(AWS), an Amazon.com, Inc. company announced that the company invested
more than $30 million to early-stage start-ups, known as new AWS Impact
Accelerator, led by Black, Latino, LGBTQIA+ and women founders. As per
the investment plan, every qualifying start-up receives up to $225,000
from AWS Impact Accelerator for accelerating their technological
endeavors, including optimizing cloud infrastructure.
- In April 2022, Amazon Web Services, Inc.
(AWS), an Amazon.com, Inc. company signed a collaboration agreement with
Boeing to offer support to Boeing in terms of extending the aerospace's
existing cloud operations. The collaboration also streamlines Boeing’s
approach to cloud computing with the help of AWS. In addition, AWS power the
new and existing Boeing digital applications to denote valuable insights
for driving more efficient operations, product innovation and enhanced
customer support.
- In November 2021, IBM Corporation signed the
partnership agreement with NeuReality, a semiconductor company for the next
generation of AI-Centric computing system. The business partnership was
developed to design AI Interface Platform, resulting in providing
software integration support as well as the system-level validation in
terms of the NR1 service platform availability.
Relevant Report Titles:
Report Code: ITR 29964
Report Code: ITR 61775
Report Code: ITR 0100
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