The global artificial intelligence (AI) in data analytics market is predicted to exceed US$310 billion by 2034, expanding at a CAGR of 29.10 percent from 2025 to 2034. That’s according to findings from Precedence Research.
The growth of the market is primarily driven by the increasing volume of data generated across various sectors through business operations and digital interactions, creating a rising demand for AI-powered data analytics solutions.
North America held the largest market share of 41 percent in 2024, while Asia Pacific (APAC) is expected to witness the fastest growth during the period of 2025 – 2034, Precedence Research stated.
A major opportunity in the AI in data analytics market lies in enabling individuals without technical backgrounds to harness the power of AI. However, a persistent drawback is the reliance on poor-quality or incomplete datasets that can lead to biased or ethically questionable AI outputs, especially when robust data governance is lacking.
What is AI in data analytics?
AI in the data analytics market refers to the integration of advanced technologies such as machine learning, natural language processing, and predictive analytics with conventional data analysis techniques. This combination significantly improves the efficiency of processing vast amounts of data and uncovering valuable insights, empowering organizations to make data-driven decisions and automate key business processes.
AI-driven analytics are increasingly being adopted across key sectors including healthcare, defense, retail, and manufacturing.
AI in data analytics market faces a critical inflection point
The AI in data analytics market stands at a critical inflection point, poised for unprecedented expansion driven by the convergence of advanced machine learning architectures, exponential data proliferation, and transformative digitalization initiatives across industries, according to Precedence Research.
“The evolving landscape underscores a paradigm shift from traditional descriptive analytics towards predictive and prescriptive modalities, enabling enterprises to derive actionable intelligence at unprecedented velocity and granularity.”
Key growth drivers stem from the democratization of AI capabilities particularly through generative AI and low-code/no-code platforms, which reduce barriers for non-technical users and expand the market’s reach. This trend creates significant opportunities to integrate AI-powered decision intelligence across organizational workflows, fostering faster innovation cycles and greater operational efficiency.
“Notwithstanding challenges related to data quality, ethical AI governance, and integration complexities, the market's trajectory is unequivocally positive,” Precedence Research added. The persistent infusion of venture capital and strategic M&A activity underscores robust investor confidence.
“Ultimately, the AI in data analytics market represents a compelling frontier where technological innovation intersects with strategic business imperatives, promising significant value creation for stakeholders who adeptly navigate its complexities.”