Outlook:
COVID Impact:
Regional Insights:
Palantir Rankings & Reports:
Outlook:
The global artificial intelligence (AI) software market size was evaluated at USD 138.4 billion in 2022 and is predicted to hit around USD 1,094.52 billion by 2032, growing at a CAGR of 22.97% during the forecast period from 2023 to 2032.
Artificial intelligence, with its supercomputer vision, has changed the landscape for many industries across the globe. Artificial intelligence software is capable of learning, reasoning, perception, problem-solving, and many other intelligent behaviors. This artificial intelligence software learns various data and works accordingly. Artificial intelligence software has features of a virtual assistant, machine learning, voice recognition, and speech recognition.
Artificial intelligence software is a perfect combination of mathematical functions and complex algorithms. Artificial intelligence software is used in cars, smartphones, social media feeds, banking, video games, and many other applications of our day-to-day lives. Artificial intelligence software provides machines with advanced capabilities to find perfect solutions.
Considering the advancement in technology all over the globe, many businesses in multiple sectors have adopted artificial intelligence software to enhance their performance and to get better insights into the business. Due to the rising demand for artificial intelligence software, the AI software market is likely to grow in the forecast period of 2022-2030.
Artificial intelligence software is integrated into various sectors such as banking, IT & telecommunication, automotive, healthcare, and many others. With its capacity to detect threats, artificial intelligence software is primarily used in banking, retail, and IT & telecommunication sectors to protect against cyber threats to consumers. During the Covid-19 pandemic, industries such as retail, manufacturing, and transportation investments in the artificial intelligence software market. Artificial intelligence solutions such as Qualcomm, AWS Chatbots, Open AI Codex, and Azure AI have gained demand in the market from corporate companies to improve business operations.
Artificial intelligence software is one of the most efficient ways to reduce human efforts consumption; thus, it is integrated into most fields, from healthcare to defense. Along with this, many prominent companies are launching new artificial intelligence software to sustain themselves in the artificial intelligence software market. For instance, Amazon announced in November 2022 the launch of a new artificial intelligence tool, ‘Create with Alexa,’ to generate stories for kids. This new artificial intelligence software generates reports with images, music, and animation.
The artificial intelligence software market is widespread and carries multiple drivers. The unfolding market for 4IR technologies, such as the Internet of Things, robotics, or quantum computing, will fuel the artificial intelligence software market. Multiple enterprises are investing in artificial intelligence software to plan and implement business strategies and for better customer support. Rapidly increasing adoption of artificial intelligence software is seen as a major driver for the market. During the Covid-19 pandemic, the healthcare sector adopted artificial intelligence technology for better management.
Along with these drivers, the artificial intelligence software market carries several restraints. However, artificial intelligence technology is being admired globally, and the limited skill set for implementing proper artificial intelligence software is seen as a major restraint for the artificial intelligence software market.
Palantir Healthcare:
Palantir healthcare business achieved 267% growth between 2020 and the first half of 2022 as explained on the August 2022 earnings call.
Palantir Foundry has powered crucial operations and infrastructure in the public and commercial sectors’ responses to the COVID-19 outbreak during the past two years. Involvement in addressing one of the biggest public health issues of our time has required Palantir to become the most complete health tech firm you’ve never heard of, from simplifying PPE supply chains to monitoring COVID-19 Genetic Mutations.
That means healthcare accounted for 37% of commercial revenue in H1 2022! The segment generated $153 million in revenue throughout the first half of 2022, a growth of 267%.
This reinforces the notion that during times of chaos and disruption, innovation thrives. And for the healthcare sector, this area has experienced mass levels of chaos, therefore meaning that healthcare must adapt rapidly via the introduction of innovative technologies.
COVID Impact:
The Covid-19 pandemic affected almost every industry across the globe. The complete lockdown due to the rapidly spreading virus forced companies to shut down. However, the Covid-19 pandemic has shown positive impacts on the artificial intelligence software market. The Covid-19 pandemic period gave a boon to the work-from-home culture. During this period, many companies adopted artificial intelligence (AI) software for the complete automation of work.
Companies are likely to invest in artificial intelligence software even after the Covid-19 pandemic owing to the rising importance of artificial intelligence software for better revenue generation and enhanced customer interactions.
Regional Insights:
By region, the artificial intelligence software market is segmented into North America, Europe, Asia Pacific, Latin America, Middle East & Africa. Geographically, North America holds the largest revenue share of more than 43% in 2022 due to rising investments. The North American region’s manufacturing, retail, and healthcare industries have shown significant growth in the artificial intelligence software market during the post-Covid-19 pandemic.
Importantly to understand, Palantir is solely starting to ramp up within Canada, after crystallisation of the strategy within the US. As can be seen in the US, specifically the commercial, there is non linear, exponential growth clear for Palantir. Excitingly, COO Sankar noted that Palantir were to crystallise their strategy in the US, and later expand this strategy into Europe, and around the world.
It can be seen that Palantir is starting this expansion more aggressively elsewhere around the world.
The US is often the leading indicator for future success globally. This is in consideration of the unique culture and collective belief in which is deeply engrained within the subconscious mind of citizens.
Looking throughout history, the US – thanks to the agility and emphasis on innovation – has proven to be a place in which mass innovation occurs firstly.
This is reinforced within this report on Palantir.
Palantir Rankings & Reports:
Foresters Report:
Palantir was among the select companies that Forrester invited to participate in “The Forrester Wave™: AI/ML Platforms, Q3 2022” report. Palantir was cited as a Leader in this research. Palantir’s Foundry operating system received the highest possible scores in the product vision, performance, market approach, and applications criteria.
As stated in the report, “Palantir Technologies forges a resilient platform for complex, critical AI use cases…. Reference customers appreciate the breadth of capabilities within the platform, particularly for the security and governance of ML which is critical in many environments. Palantir is a solid choice for companies who have heavy data requirements and want to mix classical ML techniques with deep learning ML techniques to build complex AI solutions.”
“Palantir was built to solve the world’s most difficult problems with truly best-in-class, cutting-edge technology. We believe being named a Leader in this Forrester Wave evaluation validates our investments over the years in artificial intelligence and machine learning and underscores the added value we can deliver to customers,” said Palantir COO Shyam Sankar.
“We’ve had the privilege of working in the most demanding operational contexts with our customers, deploying software that connects the power of AI/ML with frontline operations,” said Akshay Krishnaswamy, Palantir’s Chief Architect. “We will continue to strengthen our products to meet rapidly expanding needs – whether centralized, federated, or at the edge – across key industries.”
ICD Report:
Palantir Technologies Inc. (NYSE: PLTR, “Palantir”), a leading builder of operating systems for the modern enterprise, today announced it was ranked the No. 1 Artificial Intelligence (AI) software platform both in 2021 market share and revenue, according to the IDC, Worldwide Artificial Intelligence Platforms Software Market Shares, 2021: AI is Being Used in More Unique Ways Than Ever report.
According to IDC, the market for AI platforms software grew 36.8% in 2021, equating to a $14.2 billion industry. A clear indicator of how embedded and pervasive AI has become across all business applications. The report also found that early adopters report 35% improvement in innovation and 33% improvement in sustainability by investing in AI over the past three years.
The increasingly broad adoption of Palantir’s Foundry and Gotham offerings across some the world’s most important organizations has been driven by the willingness of institutions to innovate and adapt with AI enabling platforms. “In a time where AI is having a profound impact across various industries, the software providers that can continually innovate and drive success for their clients are more important than ever. Palantir has demonstrated its clear leadership in AI on a global scale from both a market share and revenue perspective and are on a trajectory to continue to do so,” said Ritu Jyoti, IDC’s Group VP, AI and Automation. “We predict that the growth of the AI sector is nowhere near slowing down and we’re excited to see how Palantir continues to separate itself from the competition by solving the toughest business challenges out there with their platforms.”
“The most significant arms race of our time is to construct the next generation of artificial intelligence. While most companies are content with addressing the idiosyncratic needs and inefficiencies of select customers in a subset of industries, the market we seek to address is essentially unlimited,” said Alex Karp, Palantir’s CEO & Co-Founder. “The development of our software is not intended to merely magnify in a linear and direct fashion the output of human labor. Instead, our software aspires to augment the productive power of the human mind.”
