AI adoption statistics by industries and countries: 2024 snapshot
Table of contents
We interact with artificial intelligence (AI) on a daily basis, from using navigation apps to voice typing and employing facial recognition for unlocking smartphones and enhancing security systems across airports, hotels, and banking. As interest — particularly in generative AI — skyrockets, businesses are leveraging AI to revolutionize customer service, provide employees with advanced tools, and increase productivity.
So far, it works well. But where is this rapidly evolving enthusiasm taking us tomorrow, next year, and in the decades to come? The answer is unfolding in AI adoption statistics in real time.
AI adoption in business: statistics
Over 80% of businesses have embraced AI to some extent, viewing it as a core technology within their organizations.
Additionally, 35% of these companies are utilizing AI across multiple departments. With 80% of executives convinced that automation can be applied to any business decision, these numbers will only climb higher.
So, the message is loud and clear: Don’t let your organization fall behind in harnessing AI’s transformative power.
AI adoption in business: statistics
Alongside the surge in AI adoption, financial commitment to AI has also amplified. In 2018, only 40% of organizations actively using AI devoted over 5% of their digital budgets to it, but in 2023, that number jumped to 52%.
The need to lower costs and automate crucial business processes are leading forces behind AI adoption in most global markets.
What are the top ten factors driving AI adoption?
Advancements in AI that make it more accessible
Advancements in AI that make it more accessible
Need to reduce costs and automate key processes
Need to reduce costs and automate key processes
Increasing amount of AI embedded into standard
off-the-shelf business applications
Increasing amount of AI embedded into standard
off-the-shelf business applications
Competitive pressure
Competitive pressure
Demands due to the COVID-19 pandemic
Demands due to the COVID-19 pandemic
Pressure from consumers
Pressure from consumers
Directives from leadership
Directives from leadership
Company culture
Company culture
Labor or skills shortages
Labor or skills shortages
Enviromental pressures
Enviromental pressures
IBM Global AI Adoption Index
The rewards of AI
From improving operational efficiency and streamlining productivity to developing new products and expanding their market presence, companies with a high level of AI maturity tend to get 3X higher ROI than those just testing the AI waters.
According to 92.1% of companies in 2023, investing in data and AI yields significant benefits, marking a sharp increase from the 70.3% who reported measurable outcomes from such investments in 2020. This also represents a substantial jump from 2017, when only 48.4% of companies reported tangible results from their data and AI initiatives.
Of the firms content with AI, 42% reported cost reduction across different business functions.
of firms saw gains from AI use.
of firms saw gains from AI use.
of firms benefited from AI use.
of firms benefited from AI use.
AI adoption challenges
While most acknowledge AI's potential, 76% of business leaders find implementing the technology in their organizations challenging. Key factors facilitating AI adoption include a well-defined strategy and KPIs, expertise in data, and dependable multi-disciplinary teams.
Barriers to AI adoption include defining an AI operational model, poor data quality (a concern for 56% of companies), and insufficient employee buy-in.
of leaders struggle to implement AI
of AI pilot projects reach production
of companies face regulatory hurdles
of businesses lack a strategy
of firms mention questionable data quality as a major challenge
of organizations face budget constraints
AI investment surge is real
poured into AI by businesses in 2023
of organizations plan to boost their AI investment in 2024
of CFOs are projecting higher AI budgets in 2024
of the total budget is dedicated to AI by AI-mature firms
Everything you need to know about generative AI (genAI) adoption
80% of decision-makers have already experimented with genAI. The generative AI adoption curve demonstrates that genAI is dominating AI discussions. Nearly 80% of respondents have already experimented with this advanced technology, and over 20% incorporate it regularly into their work.
While genAI is popular across multiple industries, it particularly shines in technology, underscoring the sector's drive for innovation.
The corporate world is also catching up, with one-third of respondents stating that their companies now depend on genAI for particular tasks. Driven by the possibilities of this advanced technology, 40% of these users are contemplating increasing their AI investments.
Reported exposure to generative AI tools, % of respondents
Advanced industries
Business, legal, and professional services
Consumer goods/retail
Energy and materials
Financial services
Healthcare, pharma, and medical products
Technology, media, and telecom
Among all business functions, marketing ranks highest in genAI adoption
With swift adoption across all business functions, approximately 75% of the anticipated genAI value is concentrated in three key areas: marketing and sales, R&D, and customer operations.
Share of respondents with regular genAI use within their organizational roles
Adoption rates: businesses vs. consumers
A recent study revealed that a large number of individuals feel either comfortable or neutral about using generative AI in marketing (65%) and customer service (56%). This acceptance indicates that businesses are likely to increase their investments in these technologies, seeing them as prime opportunities for application.
Another AI adoption survey involving 1,400 executives underscores a clear movement towards AI integration, with about half (45%) indicating that their firms are either in the testing phase or actively implementing generative AI. An additional 10% have fully incorporated AI technologies into their operations.
The push for AI initiatives often comes from senior leadership; for example, 72% of US CEOs regard generative AI as a crucial investment area, even amid economic uncertainties.
Business execs observe a 15.2% revenue boost due to genAI application. Plus:
revenue increase
better worker productivity thanks to ChatGPT
boost in productivity
developer productivity improvement thanks to coding assistants
Conversational AI adoption
AI-powered solutions are on top of their game when it comes to improving the entire function of customer operations, including customer experience and agent productivity.
growth expected in the conversational AI market by 2027
of companies on the market are already using conversational AI
of people use chatbots to resolve a problem or get detailed answers
of consumers engaged with a chatbot report having a positive experience
of firms report sales improvement with chatbot use
of consumers are open to purchasing via chatbots
of businesses report that chatbot yields substantial ROI on minimal investment
customer service hours saved annually by chatbots
CEOs report conversational AI boosts business-customer interactions and employee support by 40% and 37%, respectively.
Here are some additional figures that highlight the significance and effects of conversational AI in enhancing operational efficiencies and customer engagement:
of executives believe AI enables humans to concentrate on meaningful work.
drop in response times has been achieved with conversational AI in customer service.
of customer interactions are predicted to be handled without a human by 2025.
of brands plan to deploy conversational AI to improve customer service within three years.
Enterprise AI adoption keeps pace with the general business trend
Larger enterprises are 2X more likely to implement AI compared to smaller firms.
Organizations recognize that AI and data are key drivers for enterprise reinvention, with about 50-60% of companies now leveraging AI to transform operations, from enhancing forecasting accuracy to optimizing logistics and providing next-product-to-buy recommendations.
of strategists report that AI adoption in the enterprise will be critical to their success in 2024
of enterprises accelerated their AI rollout or investments in 2023
of AI-driven enterprises benefit from automated IT and business processes
of enterprises have actively integrated artificial intelligence into their operations
Big tech players are heavily investing in AI
Tech giants are pouring cash into AI at a breakneck pace, with investors and analysts increasingly believing the AI boom is sustainable. Around $30 billion was invested in generative AI companies last year.
$10B Microsoft -> Open AI
OpenAI, with Microsoft making a "multiyear, multibillion-dollar investment" rumored to be around $10 billion. This investment highlighted Microsoft's strong commitment to advancing AI technologies and their applications.
$6B Amazon + Google -> Anthropic
Anthropic garnered significant attention with two major investments: a commitment from Amazon of up to $4 billion, marking it as one of the standout AI investments of the year, and a subsequent investment from Google valued at up to $2 billion.
$1.3B Microsoft + NVIDIA -> Inflection AI
Inflection AI received a substantial investment of $1.3 billion in a funding round led by Microsoft, Reid Hoffman, Bill Gates, Eric Schmidt, and Nvidia.
$1.1B Eldridge + 3L Capital -> Metropolis
Metropolis, a company utilizing computer vision and AI in its parking solutions, raised $1.1 billion in debt and equity, showcasing the diverse applications of AI beyond traditional sectors and its potential to innovate in urban infrastructure and logistics.
AI CRM adoption
Integrating AI technology into customer relationship management (CRM) systems propels businesses forward by streamlining personalized customer interactions, discovering new growth paths, and expanding market reach.
No wonder generative AI in the CRM market is projected to experience a meteoric rise from $19 million in 2022 to $119.9 million by 2032, growing at a 20.8% CAGR.
AI CRM market valuation
AI CRM market valuation
AI CRM market to reach
AI CRM market to reach
For 51% of sales leaders, AI has already become a pivotal element in their CRM strategies.
reduction in customer churn is achieved through AI-driven predictive analytics in CRM
of enterprises will be utilizing AI-based CRMs by 2024
gain anticipated for the US CRM sector with AI adoption in the coming years
boost in business revenue due to AI-powered CRM adoption (2023)
Adoption of AI for cybersecurity
Although AI shows no signs of replacing security professionals, it can serve as their perfect copilot. Expected to grow from approximately $24 billion in 2023 to around $134 billion by 2030, the AI cybersecurity market ushers in a new era of data protection, advanced threat detection, and seamless user access control.
With 69% of enterprises considering AI crucial for cybersecurity due to the surging threats that exceed what human analysts can manage, AI's role as a vital tool in bolstering cybersecurity efforts is more evident than ever.
2024 AI adoption rate by industry
AI has become increasingly important in service operations, strategic planning, and corporate finance, with almost all industries stating about 20% utilization in these areas. The sectors seeing the most benefit are telecom, risk management, and retail service operations, where AI optimization rates stand at 38% and 31%, respectively.
Conversely, the integration of AI in the manufacturing and marketing sectors has been limited due to their reliance on unique human expertise that is not easily replaceable by AI solutions. However, the rise of generative AI — with its endless content generation capabilities — has flipped the script, leading to the increasing adoption of AI in marketing and sales.
Human resources
Manufacturing
Marketing & sales
Risk
Service operations
Strategy & corporate finance
All industries
Human resources
11%
Manufacturing
8%
Marketing & sales
5%
Risk
19%
Service operations
19%
Strategy & corporate finance
21%
Business, legal, and professional services
Human resources
11%
Manufacturing
10%
Marketing & sales
9%
Risk
16%
Service operations
20%
Strategy & corporate finance
19%
Consumer goods/retail
Human resources
14%
Manufacturing
4%
Marketing & sales
3%
Risk
15%
Service operations
31%
Strategy & corporate finance
29%
Financial services
Human resources
1%
Manufacturing
8%
Marketing & sales
7%
Risk
17%
Service operations
24%
Strategy & corporate finance
23%
Healthcare/pharma
Human resources
15%
Manufacturing
7%
Marketing & sales
2%
Risk
22%
Service operations
12%
Strategy & corporate finance
8%
High tech/telecom
Human resources
6%
Manufacturing
6%
Marketing & sales
4%
Risk
38%
Service operations
21%
Strategy & corporate finance
25%
AI adoption rate by industry: an in-depth analysis
Healthcare
Insurance
Human resources
Financial services
Manufacturing
Marketing
Real estate
The rapid AI adoption in healthcare, with its projected near-universal use for early diagnosis and remote patient monitoring, signifies a groundbreaking advancement in improving patient outcomes. This shift reflects a growing trust in AI’s potential to revolutionize the healthcare environment.
of healthcare organizations worldwide started AI models adoption in 2021
global AI healthcare market was worth in 2023
of the market in 2023 was dominated by the robot-assisted surgery segment based on application
of hospitals will use AI technology for early diagnosis and remote monitoring by 2025
of insurers in the UK and the US have implemented generative AI technologies
global AI in insurance market value in 2023
of insurers are embracing AI as a strategic priority in 2024
of insurers are exploring the potential of generative AI in 2024
of HRs say using AI for HR-related activities is a priority in 2024
of HRs are using AI to review or screen applicant resumes
of HR professionals plan to adopt AI in 2024-2025
of business leaders plan to enhance their HR with AI within the next 5 years
of financials are either assessing AI or have already adopted it in 2024
of finance leaders reported their organizations were deploying AI in some manner in 2023
of companies make use of AI adoption in financial services for fraud detection and anti-money laundering
of total AI investments in 2021 were made by banking and securities
of companies believe machine learning adoption in manufacturing will be crucial for growth and innovation
was the valuation of the AI in manufacturing market in 2023
global AI in marketing market size in 2023
global market revenue forecast for AI in marketing in 2028
of marketers use AI for data analysis
of B2B marketers in the US use chatbots to generate leads
of marketers worldwide integrate some form of AI into online marketing
of marketers in 35 countries use AI to automate customer interactions
of America's leading real estate brokerages are already using AI
AI in real estate market size as of 2023
of real estate agents use AI daily to craft property descriptions
of real estate brokerage executives worry about the lack of sufficient AI regulations
AI adoption by country: leaders and laggards
The pace of artificial intelligence implementation varies significantly across regions, with AI adoption rate by country directly linked to local regulatory requirements. AI adoption in India and China is leading the way, with around 60% of IT professionals indicating their companies are actively incorporating AI.
This adoption rate stands out when compared to countries like South Korea (22%), Australia (24%), the United States (25%), and the United Kingdom (26%).
AI adoption rates around the world
Australia
Canada
China
France
Germany
India
Italy
Latin America
Singapore
South Korea
Spain
United Arab Emirates
United Kingdom
United States
Global
AI adoption rates in the United States in 2024
In the United States, the highest adoption rates of AI implementation are seen in large organizations. More than half of the companies with over 5,000 employees leverage AI capabilities, which rises to over 60% for firms with 10,000+ employees.
Yet, there's a mixed landscape when examining AI adoption across different sectors. Manufacturing, information services, and healthcare companies report an AI adoption rate of about 12%. Conversely, the construction and retail sectors are at the lower end — with only 4% of companies in these areas taking advantage of AI technology.
AI use intensity and testing rates by sector, %
Agriculture, mining, and utilities
Construction
Manufacturing
Wholesale trade
Retail trade
Transportation and warehousing
Information
Finance, insurance, and real estate
Professional services
Management and administrative
Education
Healthcare
Other
Future trends in AI adoption: What’s in the cards?
As artificial intelligence progresses, its sway across industries is getting bigger. Here, we explore the emerging trends poised to define the landscape of AI deployment in 2024 and beyond.
Generative AI in entertainment
In the entertainment industry, generative AI is revolutionizing content creation, with pioneers like Runway that rival the quality of the best animation studios. Plus, giants like Disney and Paramount are exploring their capabilities to enhance production efficiency from lip-syncing to special effects, which marks a significant shift toward more technologically integrated content creation processes.
Deepfake proliferation and regulation
The rapid progress in generative models is driving the proliferation of deepfakes, sparking concerns about misinformation and content authenticity. This growing issue may lead to particular legislative measures within the European Union, potentially posing challenges for major tech companies. As for the United States, significant regulatory changes are not anticipated in the near term, especially during an election year.
Custom generative AI models
Bespoke AI models are gaining traction, as they are tailored to meet the unique demands of industries like healthcare, finance, and legal. This shift is driven by the need to navigate specialized terminology and practices, moving away from applying generic models. Concerns over privacy, security, and regulatory compliance also push for developing industry-specific AI models.
Multitasking robots
The enthusiasm for generative AI has sparked a keen interest in the development of general-purpose multitasking robots. Transitioning from specialized to jack-of-all-trades models, adaptable to a wide range of tasks with minimal retraining, signifies a new era of robotics where flexibility and adaptability are paramount.
GPU shortages
The relentless demand for AI digital adoption has led to a worldwide shortage of GPU processors essential for powering AI operations. The challenge now lies in increasing the production of these crucial components and searching for energy-efficient alternatives to support ongoing digital transformations.
Need for AI talent
The pressing need for talent well-versed in AI engineering, data analysis, and machine learning operations (MLOps) is ballooning daily as businesses continue embracing artificial intelligence. This trend emphasizes the critical need for educational and training programs that bridge the gap between academic theory and practical, real-world AI applications.
Shadow AI
The widespread availability of AI tools has led to the rise of shadow AI, where AI applications are used within organizations without formal oversight. This trend stresses the importance of robust governance and management strategies to address security, data privacy, and compliance risks.
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Sources: IBM, Stanford, McKinsey, Gartner, Deloitte, Security Magazine, EY, MIT