AI in Social Media Market Size

AI in Social Media Market Analysis

The AI in Social Media Market size is estimated at USD 2.10 billion in 2024, and is expected to reach USD 7.25 billion by 2029, growing at a CAGR of 28.04% during the forecast period (2024-2029).

Social media has become one of the primary sources of customer intelligence data. With the growth in social media users, the demand for AI solutions to understand customer preferences is projected to increase over the forecast period.

• Integration of artificial intelligence technology with social media for effective advertising and to gain a competitive edge is driving the market. Investing a lot in banking assistants, many institutions now use chatbots with AI interfaces to talk to their clients in the BFSI sector.
• E-commerce companies are leveraging AI technology for personalized product recommendations on social media users' profiles. For example, Amazon's AI-driven product recommendations are built into every step of the buying process.
• Moreover, the increased use of AI tools is projected to boost demand for AI in social media. For instance, in January 2022, Cadbury launched an initiative to allow small business owners to make free advertisements using an AI tool that uses a celebrity's face and voice.
• By gathering data from social media platforms, AI was able to predict the spread of COVID-19 infections, create early warning systems, and provide useful information about sensitive locations as well as predict illness and mortality.

However, AI is a complex technology, and firms need a workforce with specific skill sets to manage, create, and integrate AI systems. For instance, employees working with AI systems should be familiar with technologies such as machine learning and deep learning, cognitive computing, and image recognition. The limited number of AI technology experts is expected to hamper market growth.