Global Artificial Intelligence (AI) in Social Media Market - 2023-2030

Overview:

Global Artificial Intelligence (AI) in Social Media Market reached US$ 1.1 billion in 2022 and is expected to reach US$ 11.8 billion by 2030, growing with a CAGR of 28.4% during the forecast period 2023-2030.

Social media platforms generate large amounts of data daily in each and every second which is in the form of text, images and videos. AI can process and analyze data at every scale which provides valuable insights for users and businesses. AI also analyzes customers' behavior through their personal search content and then provides recommendations and advertisements that enhance user engagement and satisfaction.

For instance, on 6 March 2023, Snapchat introduced a new feature called "My AI," which is a chatbot powered by OpenAI's ChatGPT. My AI allows Snapchat users to engage with the chatbot and join other social networking platforms like Meta, Spotify and YouTube in integrating artificial intelligence to enhance user engagement. Snapchat+ offers first access to My AI along with other features for a monthly fee of $3.99, making it a more cost-effective option than the standalone ChatGPT Pro subscription.

Asia-Pacific is among the growing regions in the global artificial intelligence (AI) in social media market covering more than 1/3rd of the market and region has a massive and diverse population, with a significant portion actively using social media platforms and this vast user base generates a wealth of data that can be leveraged by AI systems for various applications and are experiencing rapid internet penetration, particularly in rural areas, this expanded connectivity provides more opportunities for individuals to access and engage with social media, creating a larger data pool.

Dynamics:

Government Initiatives Boost the Market

Advancement in AI technologies that includes natural language processing, computer vision and machine learning in which the government explores innovative ways to leverage AI in social media for different purposes. The government increasingly recognizes the importance of engaging with youths and citizens on social media platforms, in which AI-powered chatbots are also there to handle public queries.

For instance, on 30 May 2023, Odisha's Chief Minister launched the 'Odisha for Artificial Intelligence' and 'Artificial Intelligence for Youth' initiatives and these initiatives aim to promote AI education and awareness among the youth in the state. The State Government has partnered with international technology company Intel for this initiative. The 'Odisha for AI' initiative includes a free 4-hour course on AI offered by Intel on its app and website, this initiative is expected to put Odisha at the forefront of AI education and adoption among Indian states.

Rising Number of Social Media Users

People around the globe have easier access to social media platforms because of the development in the technologies and easily accessible to the internet and enhanced connectivity infrastructure. As more users have an opportunity that get involved in social networks there is a rise in internet usage. The increased use of smartphones has made social media widely accessible on portable devices. Users can easily download social networking programs and these factors boost the market.

For instance, in June 2023, According to smart insights, around 60% of the population uses social media and the average user daily usage is 2 hours and 24 minutes. Facebook is a nearly regular resource that doubles the amount of news from women to men and is aged mainly between 18 and 29. In January 2023, According to Facebook, it had 2.93 billion monthly users which increased up to 39 Million. Around 5.3 Billion users use at least one meta app.

Collaboration Between Companies Boosts the Market

Collaboration allows businesses to combine their knowledge and expertise in social media and AI which results in the creation of more sophisticated and original solutions. Access to new resources, like as data, expertise and technology, may be made possible through collaboration. Such resources are often essential to the success of AI projects. Synergies that result in more robust and all-encompassing AI solutions can be created by combining the strengths and talents of various companies.

For instance, on 29 September 2022, Amazon Web Services and SK Telecom collaborated for developing a new set of computer vision services aimed at making it easier and more cost-effective for customers to build, use and scale computer vision applications. The collaboration will combine SK Telecom's artificial intelligence models, trained on over 10 years of anonymized video data, with AWS's edge services, IoT, database and storage capabilities to provide organizations with a secure and flexible framework for building custom computer vision applications that can process and analyze data at the edge, in the cloud or on-premises.

Biased Recommendations and Spreading Misinformation

AI algorithms can inherit biases present in training data, leading to biased recommendations and content moderation decisions and this can perpetuate social inequalities and discrimination. AI systems often require access to user data, raising concerns about data privacy and security. Users may worry about their personal information being used for profiling or targeting. AI-driven recommendation algorithms can create echo chambers by showing users content similar to what they already believe, limiting exposure to diverse perspectives.

AI can be used unethically for spreading misinformation, deepfakes and manipulation, raising ethical dilemmas. Building and training AI models for large social media platforms can be computationally intensive and expensive. The inner workings of AI algorithms are often proprietary, making it challenging for users to understand how content is filtered and recommended. Overreliance on AI for customer support and interactions can lead to user alienation, as some users prefer human interaction.

Segment Analysis:

The global artificial intelligence (AI) in social media market is segmented based on technology, component, enterprise size, application, end-user and region.

Growth in Social Media Solutions Boosts the Market

The huge volume of data generated on social media platforms is enormous. AI can process and analyze this data at a scale and speed that would be impossible for humans, extracting valuable insights and trends. Users expect personalized content and recommendations. AI algorithms can analyze user behavior and preferences to provide personalized content, advertisements and recommendations, leading to higher user engagement.

For instance, on 18 September 2023, Lumina Datamatics introduced its Artificial Intelligence (AI) Services for Publishers, aiming to provide various benefits to publishersLumina Datamatics' AI algorithms can automatically interpret, summarize, categorize and enrich content, making it more user-friendly and discoverable and this can significantly improve the overall user experience on publishing platforms. For educational publishers, AI can enhance the quality of assessment development. Automated processes can help create more robust and accurate assessment materials.

Geographical Penetration:

Growing Concern for Data Privacy and Security Boosts the Market

North America is dominating the global artificial intelligence (AI) in social media market and the region has also seen a growing concern for data privacy and security, leading to the development of AI systems that can detect and mitigate threats, such as identifying fake accounts and preventing cyberbullying. Advertisers are increasingly using AI to optimize their social media ad campaigns. AI-driven algorithms can target the right audience, optimize ad spending and measure campaign performance more effectively.

For instance, on 4 September 2023, X, the social media platform formerly known as Twitter, updated its privacy policy to state that it may use user posts to train its AI models. However, the company has clarified that private data, such as text in direct messages, will not be used for this purpose. The change in policy aligns with owner Elon Musk's plans to use Twitter data to support researchers and engineers at his startup, xAI, in developing new products.

Competitive Landscape

The major global players in the market include: Adobe Systems Incorporated, Baidu, Inc., Salesforce,Inc., Snapchat Inc., Google Inc., International Business Machines Corp., Hootsuite Media, Inc., Meta Platforms, Inc., Twitter, Inc. and Vidora Inc.

COVID-19 Impact Analysis

During lockdowns and social distancing measures, people turned to social media for connection, information and entertainment and this surge in user activity provided more data for AI algorithms to analyze and learn from. physical stores restricted, e-commerce and online shopping witnessed significant growth. AI-driven recommendation engines on social media platforms played a crucial role in suggesting products to users, contributing to the growth of online retail.

Businesses and individuals increasingly rely on social media platforms for remote work, collaboration and communication. AI-powered chatbots and virtual assistants became essential tools for handling inquiries and tasks. The pandemic led to a rise in misinformation and harmful content related to COVID-19. Social media companies had to enhance their content moderation efforts, prompting investments in AI systems to identify and remove such content.

Advertisers adapted their strategies to the changing landscape. AI-powered ad targeting became more critical as consumer behavior shifted and AI helped optimize ad spend. AI chatbots and tools were used to provide health information, symptom checking and updates related to the pandemic. Social media platforms have become a source of both reliable and unreliable health information. AI was used to analyze social media conversations and sentiments related to the pandemic and this data helped businesses and health organizations understand public perceptions and concerns.

AI Impact

In order to provide social media users with individualized content recommendations, AI algorithms analyze user behavior and preferences. This improves user engagement and keeps users on the platform longer. To keep social media platforms secure and enjoyable, hazardous or improper information, such as racist remarks or destructive images, is identified and removed using AI-powered content moderation techniques.

AI chatbots and virtual assistance provide real-time customer support to users on social media platforms and answer common queries and provides valuable information. As AI algorithm analyses user data easily and categorizes images and videos more effectively which benefits by reaching more relevant audiences and increasing social media revenue. AI also provides social media managers with insights and analytics about user behavior.

For instance, on 12 May 2023, Goldman Sachs spun out its first startup, called Louisa, from its internal incubator. Louisa is a networking platform for employees and it was previously funded and owned by Goldman Sachs. However, it recently became an independent company and its founder, is now working to expand its client base beyond Goldman Sachs, where it has been used for the past two and a half years.

Russia- Ukraine War Impact

The conflict has created geopolitical instability in the region, potentially affecting the operations of tech companies and startups in Ukraine and neighboring countries and this instability could disrupt AI development and research efforts. In times of conflict, there is a risk of a "brain drain" as talented AI researchers and professionals may seek opportunities abroad, impacting the local AI ecosystem which could slow down innovation and growth.

The war has disrupted global supply chains, including those related to AI hardware production. Shortages or delays in critical components can affect the development and deployment of AI systems. The conflict has generated a surge in information warfare and disinformation campaigns on social media. AI tools for detecting and combating misinformation have become more critical, leading to potential growth in this area.

By Technology

• Machine Learning and Deep Learning
• Natural Language Processing
• Computer Vision
• Others

By Component

• Solutions
• Services

By Enterprise Size

• Small and Medium-Sized Enterprise
• Large Enterprises

By Application

• Sales and Marketing
• Customer Experience Management
• Predictive Risk Assessment
• Others

By End-User

• Retail and Ecommerce
• Banking, Financial Services and Insurance
• Media and Advertising
• Education
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In January 2023, Microsoft announced a multiyear, multibillion-dollar investment in OpenAI to accelerate AI breakthroughs and ensure the benefits of AI are broadly shared and this marks the third phase of their partnership, with previous investments made in 2019 and 2021 and this collaboration builds on Microsoft's commitment to AI and supercomputing technology, with a focus on responsible AI development and safety.
• In July 2023, KPMG and Microsoft are expanding their global partnership to transform professional services in critical areas, including workforce modernization and the use of AI solutions and this collaboration involves KPMG's multibillion-dollar commitment to Microsoft's cloud and AI services over the next five years, potentially unlocking over $12 billion in growth opportunities for KPMG.
• In August 2023, Tech Mahindra has partnered with Google to launch the Generative AI-Powered Email AmplifAIer as part of Tech Mahindra's TechM amplifAI0 suite of AI offerings and this solution aims to improve customer service in contact centers by using Generative AI to manage email communication more effectively and this collaboration between Tech Mahindra and Google is expected to enhance customer experience and agent efficiency in contact centers.

Why Purchase the Report?

• To visualize the global artificial intelligence (AI) in social media market segmentation based on technology, component, enterprise size, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of artificial intelligence (AI) in social media market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global artificial intelligence (AI) in social media market report would provide approximately 77 tables, 78 figures and 198 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies