Artificial Intelligence Market Report 2025: Key Data & Innovations

The 2025 Artificial Intelligence Market Report examines the sector’s current landscape. Besides, the global AI market is expected to expand from USD 757.58 billion in 2025 to USD 3.68 trillion by 2034, growing at a compound annual rate of 19.2%.

The AI report analyzes growth patterns, employment trends, patent activity, innovation hubs, and investment flows. It also identifies key regions, major investors, and emerging startups shaping AI development.

These insights allow market leaders and innovation managers to make informed decisions and adapt to shifting market demands.

Executive Summary: Artificial Intelligence Market Report 2025

• Industry Growth Overview: Our platform data shows that the AI market expanded by 13.11% last year, with over 171 000 companies and 46 200 startups driving global innovation. Also, Markets and Markets projects the AI market is to grow from USD 371.71 billion in 2025 to USD 2407.02 billion by 2032, with a compound annual growth rate (CAGR) of 30.6%.
• Manpower & Employment Growth: AI companies employ more than 11.6 million people worldwide. The market added 1.2 million jobs in the past year, which reflects steady demand for talent.
• Patents & Grants: AI innovators filed over 839 000 patents from 168 000 applicants and secured more than 31 600 grants.
• Global Footprint: Leading country hubs include the US, India, the UK, Germany, and Canada. Major city hubs are London, New York City, San Francisco, Bangalore, and Singapore.
• Investment Landscape: Over 142 000 funding rounds have closed within the sector. The participation came from 72 300 investors. Besides, the average funding round is valued at USD 27.2 million.
• Top Investors: Tencent, SoftBank, and Goldman Sachs rank among the leading AI investors. They have committed more than USD 54 billion collectively.
• Startup Ecosystem: Five notable startups shaping AI innovation include AiShelter (AI liability insurance), SIHA Artificial Intelligence (precision AI medical diagnostics), SportBoost AI (athletes’ performance management), Meu Novo Vendedor (generative AI for sales), and AILA (personalized education).

Methodology: How We Created This Artificial Intelligence Market Report

This AI report is based on proprietary data from our AI-powered StartUs Insights Discovery Platform, which tracks 7 million global companies, 20K+ technologies and trends, as well as 150M patents, news articles, and market reports. This data includes detailed firmographic insights into approximately 7 million startups, scaleups, and tech companies. Leveraging this exhaustive database, we provide actionable insights for startup scouting, trend discovery, and technology landscaping.

For this report, we focused on the evolution of artificial intelligence over the past 5 years, utilizing our platform’s trend intelligence feature. Key data points analyzed include:

• Total Companies working in the sector
• News Coverage and Annual Growth
• Market Maturity and Patents
• Global Search Volume & Growth
• Funding Activity and Top Countries
• Subtrends within artificial intelligence

Our data is refreshed regularly, enabling trend comparisons for deeper insights into their relative impact and importance.

Additionally, we reviewed trusted external resources to supplement our findings with broader market data and predictions, ensuring a reliable and comprehensive overview of the artificial intelligence market.

What Data is Used to Create This Artificial Intelligence Outlook?

Based on data provided by the StartUs Insights Discovery Platform, we observe that the artificial intelligence market stands out in the following categories relative to the 20K+ technologies and trends we track.

These categories provide a comprehensive overview of the market’s key metrics and inform the future direction of the market.

• News Coverage & Publications: The market saw over 142 000 news articles and publications last year. It reflects continued media and academic interest.
• Funding Rounds: Our database tracks more than 142 000 funding rounds. There is active investor participation and capital flow into AI ventures worldwide.
• Manpower: AI companies employ 11.6 million workers globally. They added 1.2 million new jobs in the past year, which indicates workforce expansion.
• Patents: The market maintains steady innovation and intellectual property development across various domains, with over 839 000 patents filed.
• Grants: The market secured 31 600 grants. This shows ongoing government and institutional support for research, product development, and commercialization.
• Yearly Global Search Growth: A 27.61% increase in global search interest in AI demonstrates growing public awareness and demand for AI solutions.

Explore the Data-driven Artificial Intelligence Market Report for 2025

Did you know Netflix’s AI personalization strategy saves USD 1 billion annually by improving customer retention?

Markets and Markets projects the AI market to grow from USD 371.71 billion in 2025 to USD 2407.02 billion by 2032, with a compound annual growth rate (CAGR) of 30.6%.

Credit: Markets and Markets Research

The heatmap illustrates the market’s global footprint, which expanded by 13.11% last year and now includes over 171 000 companies.

More than 46 200 startups drive innovation. They secured over 839 000 patents and 31 600 grants that strengthen intellectual property development across key segments.

AI companies employ 11.6 million people worldwide, with 1.2 million new jobs added last year. This demonstrates sustained demand for talent and organizational growth.

The top country hubs include the US, India, UK, Germany, and Canada. Key city hubs are London, New York, San Francisco, Bangalore, and Singapore.

A Snapshot of the Global Artificial Intelligence Market

The AI market continues to expand, recording a 13.11% annual increase. It is supported by over 46 200 startups across various applications and markets.

Of these, 15 390 are early-stage startups, which reflects ongoing market entry. Meanwhile, 4904 mergers and acquisitions signal active consolidation.

Patent filings exceeded 839 000 and it was submitted by more than 168 000 applicants. It shows the widespread innovation across the sector.

China leads in AI patents with 324 000 filings, followed by the USA with 257 000, reinforcing their dominance in AI research and development.

Further, the yearly patent growth stands at 16.21%. It highlights an accelerating pace of technological advancement and a strengthening innovation pipeline.

Besides, USA patent applications related to generative AI increased by 56% in the last year. It reached 51 487, while granted patents rose by 32%.

Google now leads in both generative and agentic AI patents, surpassing IBM in several categories.

Credit: Axios

Explore the Funding Landscape of the Artificial Intelligence Market

The AI market maintains steady investor interest. There have been over 142 000 funding rounds completed and 72 300 investors supporting ventures worldwide.

Each funding round averages USD 27.2 million, which shows consistent capital flow across different company stages and technology areas.

So far, 37 293 companies have secured investments. It highlights the broad funding distribution and a competitive startup ecosystem.

Who is Investing in the Artificial Intelligence Market?

The top investors in artificial intelligence have committed more than USD 54 billion, which demonstrates financial and strategic support for the market.

• Tencent invested USD 7.7 billion across 109 companies, including a USD 300+ million financing round for Moonshot. It is a Chinese generative AI startup valued at USD 3.3 billion.
• SoftBank backed 112 companies with USD 7.4 billion. Its investments include a USD 125 million funding round for Tines Security Services, a cybersecurity automation startup valued at USD 1.13 billion.
• Goldman Sachs funded 97 companies with USD 5.6 billion and led a USD 55 million Series C round for Navina, a leader in AI-powered clinical intelligence.
• General Atlantic deployed USD 5.5 billion across 33 companies. It led a USD 500 million Series E round for Insider, an AI-native customer engagement platform.
• Andreessen Horowitz invested USD 5.5 billion in 198 AI companies. This includes a USD 625 million funding round for Cursor, an AI-powered developer tool valued at USD 9.6 billion.
• Sequoia Capital committed USD 5.4 billion to 303 companies.
• Tiger Global funded 151 companies with USD 5.4 billion.
• Google invested USD 5.1 billion in 104 companies, including a partnership with Anthropic, where it contributed more than USD 1 billion in 2025, expanding previous investments of USD 2 billion.
• Insight Partners allocated USD 5 billion across 156 companies.
• Nvidia backed 87 companies with USD 4.7 billion. It holds over 24 million shares of CoreWeave, valued at USD 896 million, representing 78% of Nvidia’s total equity holdings.

Top Artificial Intelligence Innovations & Trends

Discover the emerging trends in the artificial intelligence market along with their firmographic details:

• Agentic AI is shaping digital assistants, task automation, and adaptive decision-making tools across industries. It has over 8900 companies developing autonomous, goal-oriented systems. These firms employ 295 500 professionals and added 55 800 new jobs last year. The trend continues to expand with an annual growth rate of 49.55%.
• Responsible AI includes organizations increasingly focusing on transparency, fairness, and accountability in AI systems. A total of 1280+ companies operate in the responsible AI segment, supporting 93 800 employees. The sector added 15 400 jobs in the past year. The growth is driven by demand for ethical AI governance, bias detection, and compliance solutions. Annual growth stands at 57.35%, which reflects regulatory shifts and efforts to build trustworthy AI models.
• Multimodal AI is expanding the fastest, growing at an annual rate of 60.72%. A total of 460+ companies specialize in systems that integrate text, image, video, and audio inputs. These firms employ 16 300 professionals and added 6900 new jobs last year. Multimodal AI is advancing content generation, human-computer interaction, and contextual understanding across media, healthcare, and retail.

5 Top Examples from 46 220+ Innovative Artificial Intelligence Startups

The five innovative startups showcased below are picked based on data including the trend they operate within and their relevance, founding year, funding status, and more. Book a demo to find promising startups, emerging trends, or industry data specific to your company’s needs and objectives.

AiShelter advances AI Liability Insurance

US-based startup AiShelter creates Cogman, an AI risk management platform that monitors and secures systems throughout their lifecycle.

The platform connects to AI deployment environments via secure SSO authentication and audits code, APIs, data pipelines, and cloud functions for risk indicators. It tracks real-time metrics such as bias, model hallucination, adversarial attacks, and compliance gaps using automated scoring and lifecycle tracing.

Cogman includes black-box auditing, penetration testing, and dark web threat detection to assess vulnerabilities and protect proprietary models and datasets. Its conversational risk assessment tool, Cogman Chat, provides compliance guidance and security profiling tailored to specific AI deployments.

The startup’s platform supports documentation for regulatory compliance with global standards, including the EU AI Act, NIST AI RMF, and ISO 42001. AiShelter enables developers, insurers, and enterprises to detect threats early, enforce governance, and underwrite AI liability with real-time insights.

SIHA Artificial Intelligence enables Precision AI Medical Diagnostics

Kenyan startup SIHA Artificial Intelligence develops a mobile diagnostic application that detects diseases using deep learning and computer vision.

The startup’s platform analyzes microscopy and pathology images directly on smartphones to deliver accurate results in seconds without external processing. It enhances laboratory technologists’ efficiency and functions well in low-resource settings through real-time, on-device analysis.

SIHA Artificial Intelligence integrates advanced algorithms to maintain diagnostic precision and achieve accuracy. Its scalable design supports deployment across multiple devices and locations, which makes it accessible in underserved regions.

SportBoost AI supports Athletes’ Performance Management

Canadian startup SportBoost AI develops mobile applications that use AI to measure, track, and analyze athletic performance with minimal hardware.

It offers products such as JumpBoost and ServeBoost. They rely on smartphone cameras and sensors to assess jump height, velocity, joint angles, and serve speed without WiFi or external devices.

JumpBoost records vertical jumps, provides instant performance metrics, and manages athlete-specific data within a secure environment. ServeBoost integrates with radar tools to capture volleyball serve speeds, which allows teams to store, filter, and analyze gameplay data through a mobile app and web dashboard.

Additionally, the platform offers athlete and team management tools, customizable data handling, and export-ready analytics for coaches and scouts. SportBoost AI supports data-driven training and decision-making in both competitive and recreational sports.

Meu Novo Vendedor provides Generative AI Sales & Business Development

Brazilian startup Meu Novo Vendedori creates a generative AI platform that qualifies marketing leads into sales leads using consultative digital sales representatives.

The startup’s platform integrates with CRM tools and messaging platforms like WhatsApp to engage prospects within five minutes of lead capture to gather insights on budget, needs, and timeline. It runs continuously throughout the week and adjusts daily through machine learning to enhance conversion rates.

It supports white-label customization, secure data encryption, and full control over brand communications, including voice messaging and document sharing. The platform optimizes lead engagement and lowers labor costs, scales outreach, and maintains a high-conversion sales function.

AILA offers Personalized Education

Saudi Arabian startup AILA builds an AI-powered educational platform that delivers personalized learning through integrated tools for classroom management, test preparation, and Quranic studies.

Its solution, AILA Schools, features a smart learning system (SLS) that breaks curricula into daily lessons, tracks student progress in real time, and supports data-driven decision-making with AI-generated dashboards.

AILA Tests provides individualized study plans, mock exams, and post-assessment analytics to allow students, job seekers, and professionals to prepare for academic and certification exams.

Additionally, AILA Mushaf uses AI to assist Quran memorization with real-time recitation feedback, multilingual content support, and personalized practice plans.

Gain Comprehensive Insights into Artificial Intelligence Trends, Startups, and Technologies

The artificial intelligence market will expand in 2025 as innovation, investment, and workforce growth drive advancements across sectors. AI-driven robotics, generative AI, and edge AI will transform automation, content creation, and real-time processing. As adoption increases, organizations must prioritize scalability, ethics, and interdisciplinary collaboration to remain competitive.

Get in touch to explore 46 220+ artificial intelligence startups and scaleups, as well as all market trends impacting 171 000+ companies.