Market Size of AI in Social Media Industry
![Artificial Intelligence in Social Media Market Summary](https://s3.mordorintelligence.com/ai-market-in-social-media/1673962533030_ai-market-in-social-media_Market_Summary.webp)
Study Period | 2019 - 2029 |
Market Size (2024) | USD 2.10 Billion |
Market Size (2029) | USD 7.25 Billion |
CAGR (2024 - 2029) | 28.04 % |
Fastest Growing Market | Asia-Pacific |
Largest Market | North America |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
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.
AI in Social Media Industry Segmentation
AI in social media aims to boost creation of content and audience interaction by utilizing this technology. It is used to automate the creation of postings, the analysis of user data, and the provision of recommendations and suggestions to users. The Artificial Intelligence (AI) in the Social Media Market is segmented By Technology (Machine Learning and Deep Learning, NLP), Application (Sales and Marketing, Customer Experience Management, Image Recognition, Predictive Risk Assessment), Service (Managed Service, Professional Service), Organization Size (Small and Medium Enterprise, Large Enterprise) End User (Retail, E-commerce, Banking, Financial Services and Insurance (BFSI), Media and Advertising, Education, Other End-user Industries) and Geography (North America, Europe, Asia Pacific, Latin America, and Middle East and Africa).
The market sizes and forecasts are provided regarding value (USD million) for all the above segments.
Technology | |
Machine Learning and Deep Learning | |
Natural Language Processing (NLP) |
Application | |
Customer Experience Management | |
Sales and Marketing | |
Image Recognition | |
Predictive Risk Assessment | |
Other Applications |
Service | |
Managed Service | |
Professional Service |
Organization Size | |
Small and Medium Enterprises | |
Large Enterprises |
End-User Industry | |
Retail | |
E-commerce | |
Banking, Financial Services and Insurance (BFSI) | |
Media and Advertising | |
Education | |
Other End-user Industries |
Geography | |||||||
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Latin America | |||||||
Middle East and Africa |
AI in Social Media Market Size Summary
The AI in Social Media market is experiencing significant growth, driven primarily by the integration of artificial intelligence technology for effective advertising and competitive edge. This growth is fueled by an increase in social media users and the demand for AI solutions to understand customer preferences. The market is also seeing substantial investments in AI interfaces, with many institutions using AI-powered chatbots to communicate with their clients, particularly in the BFSI sector. E-commerce companies are leveraging AI technology for personalized product recommendations on social media users' profiles. However, the complexity of AI technology and the need for a skilled workforce to manage and integrate AI systems may hamper market growth. In terms of industry trends, the retail industry is expected to witness significant growth due to the increasing use of social media for online shopping and other e-commerce activities. AI in social media is helping retail brands predict marketing trends, make their promotions more effective, and gain a competitive edge. North America is expected to hold a significant market share due to increasing investments in AI technology solutions. The competitive rivalry in the market is highly competitive, with major players like Microsoft Corporation, Google LLC, and Amazon Web Services dominating. These companies are implementing strategies such as partnerships, product innovation, mergers, and acquisitions to maintain their market position.
Explore MoreAI in Social Media Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Overview
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1.2 Industry Attractiveness - Porter's Five Forces Analysis
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1.2.1 Threat of New Entrants
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1.2.2 Bargaining Power of Buyers/Consumers
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1.2.3 Bargaining Power of Suppliers
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1.2.4 Threat of Substitute Products
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1.2.5 Intensity of Competitive Rivalry
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1.3 Assesment of Impact of COVID-19 on the market
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1.4 Technology Roadmap
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1.5 Introduction to Market Drivers and Restraints
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1.6 Market Drivers
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1.6.1 Integration of Artificial Intelligence Technology with Social Media for Effective Advertising
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1.6.2 Increase in User Engagement on Social Media by Using Smartphones
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1.6.3 Rise in Use of AI in Understanding Market Trends and Gaining Competitive Edge
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1.7 Market Restraints
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1.7.1 Limited Number of Artificial Intelligence Technology Experts
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1.7.2 Low Adoption of AI in Developing Economies
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1.8 Market Opportunities
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2. MARKET SEGMENTATION
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2.1 Technology
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2.1.1 Machine Learning and Deep Learning
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2.1.2 Natural Language Processing (NLP)
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2.2 Application
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2.2.1 Customer Experience Management
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2.2.2 Sales and Marketing
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2.2.3 Image Recognition
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2.2.4 Predictive Risk Assessment
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2.2.5 Other Applications
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2.3 Service
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2.3.1 Managed Service
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2.3.2 Professional Service
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2.4 Organization Size
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2.4.1 Small and Medium Enterprises
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2.4.2 Large Enterprises
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2.5 End-User Industry
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2.5.1 Retail
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2.5.2 E-commerce
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2.5.3 Banking, Financial Services and Insurance (BFSI)
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2.5.4 Media and Advertising
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2.5.5 Education
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2.5.6 Other End-user Industries
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2.6 Geography
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2.6.1 North America
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2.6.1.1 US
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2.6.1.2 Canada
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2.6.2 Europe
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2.6.2.1 UK
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2.6.2.2 Germany
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2.6.2.3 France
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2.6.2.4 Spain
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2.6.2.5 Rest of Europe
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2.6.3 Asia-Pacific
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2.6.3.1 China
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2.6.3.2 Japan
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2.6.3.3 India
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2.6.3.4 South Korea
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2.6.3.5 Rest of Asia-Pacific
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2.6.4 Latin America
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2.6.5 Middle East and Africa
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AI in Social Media Market Size FAQs
How big is the AI in Social Media Market?
The AI in Social Media Market size is expected to reach USD 2.10 billion in 2024 and grow at a CAGR of 28.04% to reach USD 7.25 billion by 2029.
What is the current AI in Social Media Market size?
In 2024, the AI in Social Media Market size is expected to reach USD 2.10 billion.