Artificial Intelligence (AI) in Government Market - Forecasts from 2024 to 2029

AI in the government market is estimated to grow at a CAGR of 28.22% during the projected period, accounting for a total market size of US$64.077 billion by 2029, up from US$18.487 billion in 2024.

Governments worldwide are becoming increasingly interested in artificial intelligence (AI) technologies. They are investing heavily in AI, dedicating budget and time to piloting various AI applications and discussing with experts in this field its future technology innovations. These innovations can be utilized to change how work is performed, from law enforcement to running transportation projects. Air Force Central in the United States is increasing its use of AI technology, leading to a significant trend in AI equipment usage across governments due to the massive accumulation of data. This cuts down on the cost of storing and processing all this data.

The increasing use of cloud computing solutions also drives AI in the government market's growth because cloud computing combines data, cognitive services, and edge computing, enabling rapid response time by deputies. As machine learning continues to enhance the technological aspects of various applications, it will increasingly fund deep research into AI. Various global governments are collaborating with industry players and academic institutions in myriad AI projects for the public, such as managing traffic and digitizing past government paperwork. This will generate positive market growth of AI in government during the forecast period.

Moreover, chatbots are the most popular form of AI in the government. They used to provide very targeted applications that could answer basic procedural questions early on in the process. However, the absolute value increased as they became more productive, as they could converse and answer questions while giving feedback for better customer service. As citizens are already using AI for a digital assistant/bot or any other intelligent service in the commercial market, governments are implementing AI in their services since citizens will more readily accept these technologies.

AI IN GOVERNMENT MARKET DRIVERS:

• Growing adoption of AI for efficiency and improved decision-making in public services is expected to increase the global market for AI in governments.

The government sector is increasingly embracing AI technology in its services since it assists in cost-cutting and boosts efficiency. AI effectively automates tasks, simplifies processes, and optimizes workflows, reducing costs and helping to effectively utilize resources for the progress of public services. AI can deliver data insights, enabling advanced data analysis to predict future trends and capture security risks early, leading to advanced decision-making. For instance, a Microsoft data report of June 2024 estimates that utilizing the GenAI tool could save the UK public sector £17bn by 2035, yet even just a five-year delay in adoption would lead to a loss in its economy of up to £150bn.

In addition, AI is capable of assisting governments in conducting data-driven analysis to aid evidence-based policymaking, avoiding assumptions with evidence, and using proper forecasts provided by AI. As governments seek to scale up public service performance, the need for AI technologies has been recognized as significant, consequently contributing to the exponential growth of the AI market worldwide.

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Report Coverage:

• Historical data & forecasts from 2022 to 2029
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

Market Segmentation:

AI in the Government Market is segmented and analyzed as below:

By Offering

• Hardware
• Software
• Services

By Technology

• Machine Learning
• Deep Learning
• Machine Vision
• Natural Language Processing

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• United Kingdom
• Spain
• Italy
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• South Korea
• India
• Indonesia
• Thailand
• Others