The AI industry has seen extraordinary growth globally, and its impact is significantly felt in the UK as well. In the past three years, the industry’s value has soared to $240 billion, more than doubling in size. This expansion is mirrored across various sectors including healthcare, retail, manufacturing, stock trading, and social media in the UK, with AI solutions being increasingly employed for enhanced efficiency, decision-making, and to maintain a competitive edge. The sustained investment in AI technologies and startups, both in the UK and worldwide, indicates a strong and continuing interest in the sector.
Looking ahead, the AI market is projected to grow at a compound annual growth rate (CAGR) of 17% over the next four years, with predictions placing its value at over $500 billion by 2027. Notably, generative AI is expected to make up a quarter of this total market value by 2027, highlighting its growing significance.
The rise of large language models and generative AI has been particularly notable. Once a distant concept, these technologies are now at the forefront of the AI market’s potential. According to PwC’s 2023 Global Artificial Intelligence Study, AI could contribute a monumental $15.7 trillion to the global economy by 2030, a prospect that holds significant implications for the UK economy. The market’s key segments, machine learning and natural language processing (NLP), are expected to be major contributors to this growth.
Statista reports an 80% year-over-year growth in the global AI industry, reaching a value of $241 billion in 2023. This trend is expected to continue, with the market projected to more than double to $511.3 billion by 2027. Machine learning, the largest segment of the AI market, is anticipated to grow by 122% during this period, reaching a value of $355 billion. Generative AI, a subset of machine learning, is poised to account for one-quarter of the market value by 2027. The NLP segment is also expected to see substantial growth, projected to increase by 94% to a value of $45.7 billion.