PUBLISHER: The Business Research Company | PRODUCT CODE: 1888140
PUBLISHER: The Business Research Company | PRODUCT CODE: 1888140
Cognitive system and artificial intelligence (AI) systems refer to technologies that enable machines to simulate human intelligence, including learning, reasoning, and problem-solving. They analyze large volumes of data, recognize patterns, and continuously improve performance through experience to make intelligent decisions or recommendations. These systems are widely used to enhance automation, improve decision-making, and drive innovation across industries such as healthcare, finance, and manufacturing.
The key components of cognitive systems and artificial intelligence (AI) systems include hardware, software, services, and others. Hardware refers to the physical components of a computing system that support the execution of software and AI applications. They use various technology types, including machine learning, natural language processing, context-aware computing, computer vision, and others. Different deployment models include cloud-based, on-premise, hybrid, and others. These systems are applied for robotic process automation, predictive maintenance, fraud detection, customer experience management, and others by several end-user industries, including healthcare, retail, banking, financial services, and insurance (BFSI), information technology (IT) and telecom, automotive, and others.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The rapid escalation of U.S. tariffs and the resulting trade tensions in spring 2025 are significantly impacting the information technology sector, particularly in hardware manufacturing, data infrastructure, and software deployment. Higher duties on imported semiconductors, circuit boards, and networking equipment have raised production and operational costs for tech firms, cloud service providers, and data centers. Companies relying on globally sourced components for laptops, servers, and consumer electronics are facing longer lead times and increased pricing pressures. In parallel, tariffs on specialized software tools and retaliatory measures from key international markets have disrupted global IT supply chains and reduced overseas demand for U.S.-developed technologies. To navigate these challenges, the sector is accelerating investments in domestic chip fabrication, diversifying supplier bases, and adopting AI-driven automation to enhance operational resilience and cost efficiency.
The cognitive system and artificial intelligence (AI) systems market research report is one of a series of new reports from The Business Research Company that provides cognitive system and artificial intelligence (AI) systems market statistics, including cognitive system and artificial intelligence (AI) systems industry global market size, regional shares, competitors with a cognitive system and artificial intelligence (AI) systems market share, detailed cognitive system and artificial intelligence (AI) systems market segments, market trends and opportunities, and any further data you may need to thrive in the cognitive system and artificial intelligence (AI) systems industry. This cognitive system and artificial intelligence (AI) systems market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The cognitive system and artificial intelligence (AI) systems market size has grown exponentially in recent years. It will grow from $99.96 billion in 2024 to $148.38 billion in 2025 at a compound annual growth rate (CAGR) of 48.4%. The growth in the historic period can be attributed to increasing demand for data-driven decision-making, rising adoption of digital transformation initiatives, growing use of automation in business processes, surge in demand for predictive insights across industries, expansion of customer engagement optimization efforts, and increasing focus on improving operational efficiency.
The cognitive system and artificial intelligence (AI) systems market size is expected to see exponential growth in the next few years. It will grow to $716.75 billion in 2029 at a compound annual growth rate (CAGR) of 48.3%. The growth in the forecast period can be attributed to growing emphasis on ethical and transparent AI governance, rising investment in workforce skill development for AI integration, increasing demand for personalized and context-aware customer experiences, expansion of public sector initiatives supporting AI adoption, surge in demand for AI-driven sustainability solutions, and increasing reliance on cognitive tools for strategic business planning. Key trends in the forecast period include technological advancements in natural language understanding, advancements in emotion recognition and affective computing, innovations in self-learning and adaptive AI systems, developments in cognitive cloud infrastructure integration, research and development in hybrid human-AI collaboration models, and innovations in multimodal AI systems combining speech, vision, and text.
The growing adoption of cloud-based platforms is expected to drive the growth of the cognitive system and artificial intelligence (AI) systems market going forward. Cloud-based platforms refer to online infrastructures and services that deliver computing resources, storage, and applications over the internet instead of on local servers or devices. Their adoption is increasing due to scalability, enabling flexible resource management and cost efficiency. Demand for cloud computing supports cognitive and AI systems by providing scalable computing power and storage, allowing these systems to handle large data volumes and complex computations efficiently through remote resources. For instance, in January 2025, according to AAG IT, a UK-based IT services company, an estimated 63% of small and medium-sized business (SMB) workloads and 62% of SMB data were expected to be hosted in public clouds by 2023, up from 57% of workloads and 56% of data in 2022. Therefore, the growing adoption of cloud-based platforms is fueling the growth of the cognitive system and artificial intelligence (AI) systems market.
Key companies operating in the cognitive system and artificial intelligence (AI) systems market are focusing on incorporating large language models (LLMs) to enhance enterprise automation, decision-making, and contextual understanding. Large language models (LLMs) are advanced deep learning algorithms trained on extensive text datasets that enable machines to understand, generate, and reason with human language, supporting capabilities such as contextual comprehension, autonomous reasoning, and multi-turn dialogue execution. For instance, in November 2024, Sema4.ai, a US-based enterprise AI solutions provider, launched its AI Agent Platform, a large language model-powered system designed to help organizations build, manage, and scale autonomous AI agents across complex workflows. The platform features multi-agent collaboration, integration with enterprise-approved LLMs such as OpenAI, Microsoft Azure, and Amazon Bedrock, and governance tools that ensure secure and compliant AI deployment. AI Agent Platform enhances operational efficiency, intelligent workflow automation, and contextual reasoning in enterprise environments.
In August 2024, SoundHound AI Inc., a US-based provider of voice artificial intelligence (AI) solutions, acquired Amelia for $80 million. Following the acquisition, SoundHound AI gains access to Amelia's advanced conversational AI technology, enterprise customer base, and digital workforce automation expertise, thereby expanding its cognitive and conversational AI capabilities while enhancing operational scale, global enterprise reach, and service portfolio. Amelia LLC is a US-based provider of cognitive and AI systems.
Major players in the cognitive system and artificial intelligence (ai) systems market are Amazon.com Inc., Google LLC, Microsoft Corporation, Huawei Technologies Co. Ltd., Tencent Holdings Limited, International Business Machines Corporation (IBM), Intel Corporation, Oracle Corporation, Qualcomm Technologies Inc., SAP SE, Salesforce Inc., NVIDIA Corporation, Wipro Limited, SAS Institute Inc., iFlyTek Co. Ltd., Palantir Technologies Inc., C3.ai Inc., SambaNova Systems Inc., Yseop SAS, and Brainasoft Pvt. Ltd.
North America was the largest region in the cognitive system and artificial intelligence (AI) systems market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in cognitive system and artificial intelligence (AI) systems report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
The countries covered in the cognitive system and artificial intelligence (AI) systems market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The cognitive system and artificial intelligence (AI) systems market consists of revenues earned by entities by providing services such as data management services, deployment services, customization services, testing and validation services, cloud integration services, and security and compliance services. The market value includes the value of related goods sold by the service provider or included within the service offering. The cognitive system and artificial intelligence (AI) systems market also includes sales of AI inference appliances, AI accelerator chips, edge AI devices, and AI model serving appliances. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
Cognitive System And Artificial Intelligence (AI) Systems Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on cognitive system and artificial intelligence (ai) systems market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for cognitive system and artificial intelligence (ai) systems ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward, including technological disruption, regulatory shifts, and changing consumer preferences? The cognitive system and artificial intelligence (ai) systems market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.