Composite AI Market Size, Share, and Industry Analysis, By Component (Software, Hardware, and Services), By Technique (Data Processing, Pattern Recognition, Machine Learning, and Natural Language Processing), By Application (Product Design and Development, Customer Service, Fraud Detection and Risk Management, and Supply Chain Management), By End-Users (BFSI, Healthcare, Retail, Manufacturing, Transportation and Logistics, and Others (Education)), and Regional Forecast, 2024-2032

Composite AI is a combination of applications or fusions of various artificial intelligence techniques that enhance the effectiveness of teaching and increase the level of knowledge representation. It broadens the abstraction mechanisms of AI and provides a platform for addressing a wider range of business problems more efficiently.

The demand for composite AI solutions, which offer more enhanced AI capabilities compared to single AI technique solutions, is driven by the high adoption of data. The growing volume and complexity of data make it difficult to extract and analyze meaningful information in traditional methods. Combining different artificial intelligence techniques, such as natural language processing, machine learning, and computer vision, makes composite AI capable of efficiently dealing with a large set of data. Moreover, the growth of this market is expected to be driven by the increasing intricacy of AI applications for better performance. The market growth could be hindered by concerns about data privacy and security. According to industry experts, insufficient management of identities, access, and privileges by 2023 is responsible for 75% of security failures.

During the peak of COVID-19, the adoption of composite AI received a positive response. During the rapid spread of COVID-19 around the world, the volume of data produced from different sources increased. Several AI applications, that allow employees to perform their tasks efficiently, are central to working from home. To enhance decision-making capabilities and accuracy, the demand for composite AI components is increasing. In the COVID-19 pandemic crisis, the composite environment played an important role in accelerating the market growth.

Key Insights:

The report covers the following key insights:

• Micro Macro Economic Indicators

• Drivers, Restraints, Trends, and Opportunities        

• Business Strategies Adopted by Key Players

Segmentation:

Analysis by End-User:

Based on end-user, the market is segmented into BFSI, healthcare, retail, manufacturing, transportation and logistics, and others. In 2023, the BFSI segment reported the largest market share. The BFSI sector is full of data, with the amount of data continuously increasing. It is hard to analyze and extract information from the data due to its complexity and fragmentation. In the BFSI industry, composite AI can help to make sense of these data and derive valuable insight. Data fraud costs businesses billions of dollars each year and is a major problem for the BFSI sector.

By detecting patterns and anomalies in data, composite AI is being used to detect fraud more effectively. Banking and financial institutions are increasingly required to provide customers with personalized experiences. By understanding customer needs and preferences and adapting products and services, composite technology has personalized customer experiences.

Regional Analysis:

The composite AI market is divided into five regions: North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America dominated the market in 2023. The adoption of artificial intelligence in various sectors is actively promoted by governments in North America, recognizing its potential for transformation. Initiatives include funding research and development, providing tax incentives for the adoption of artificial intelligence, and establishing AI centers of excellence. North America, with world-class universities, research institutions, and firms working together for the advancement of this area, brags about a robust R&D ecosystem for composite AI. For instance,

• In November 2023, the U.S. Department of Commerce's National Institute of Standards and Technology called for contribution in a new association for developing innovative methods to evaluate AI systems and improve the reliability of rapidly growing technologies.

Distribution of the Composite AI Market, By Region

• North America – 35%


• South America – 8%


• Europe – 25%


• Middle East & Africa – 12%


• Asia Pacific – 20%

Key Players:

The report provides the profiles of key players such as Google LLC, NVIDIA Corporation, DataRobot, Inc., SAS Institute, SAP SE, Microsoft Corporation, Amazon Web Services, Inc., IBM Corporation, BlackSwan Technologies, Oracle Corporation, Pegasystems Inc., and Salesforce, Inc.

Key Industry Developments:

In June 2023, at the Snowflake Summit 2023, RelationalAI, an AI coprocessor for language models and cloud platforms, announced its preview availability. The relational AIs relational knowledge graph system enables the data cloud to offer integrated support for graph analytics, argumentation, optimization, and other multiverse AI applications to improve customer decision-making.

In February 2023, Amazon Web Services (AWS) and Hugging Face collaborated to make AI more cost-efficient and accessible. AWS and Hugging Face are working together to make it easier for developers to collaborate on generative AI projects in creating tools and resources that make it easy for developers to share code, composite data, and models.