Artificial Intelligence - NAFTA

The Artificial Intelligence market in NAFTA is experiencing substantial growth, driven by factors such as increasing adoption of digital technologies and the convenience offered by online services. This growth is further propelled by advancements in AI Robotics, Autonomous & Sensor Technology, Computer Vision, Machine Learning, Natural Language Processing, and Generative AI. However, challenges such as data privacy concerns and lack of skilled professionals may impact the market's growth rate in the coming years.

Customer preferences: The rise of artificial intelligence has led to a growing demand for personalized and efficient solutions in various industries. Consumers are now prioritizing AI-powered products and services that cater to their specific needs and preferences, such as virtual assistants, chatbots, and personalized recommendations. This trend is driven by the desire for improved efficiency, convenience, and customization in daily tasks and decision-making processes. Additionally, the increasing adoption of AI in healthcare and education is also fueled by the need for better access to quality and timely services, especially in remote or underserved areas.

Trends in the market: In the context of NAFTA, the Artificial Intelligence market is experiencing a surge in demand for AI-powered solutions across industries. In the United States, there is a growing trend of using AI for predictive analytics and automation in manufacturing and logistics. In Mexico, there is a rise in AI adoption in the financial sector, with banks using chatbots for customer service. In Canada, AI is being utilized in healthcare for medical imaging and diagnosis. These trends are expected to continue, with the potential to revolutionize business operations and improve efficiency for stakeholders in all three countries.

Local special circumstances: In Mexico, the Artificial Intelligence market is experiencing significant growth due to the country's strong government support for technological advancements and innovation. This has led to a rise in the adoption of AI-based solutions across various industries, such as healthcare, finance, and manufacturing. Additionally, Mexico's close proximity to the US has made it a popular destination for outsourcing AI development services, attracting foreign investments and boosting the market. However, the country's limited internet connectivity and digital literacy levels pose challenges for the widespread adoption of AI technologies, creating a unique market dynamic.

Underlying macroeconomic factors: The expansion of the Artificial Intelligence Market is greatly affected by macroeconomic factors such as advancements in technology, government policies, and investment in infrastructure. Countries with supportive regulatory frameworks and significant investments in AI are experiencing a faster growth rate compared to regions with regulatory barriers and limited funding for AI. Furthermore, the increasing adoption of AI in various industries, coupled with the rising demand for automation and efficiency, is propelling the market forward. However, economic downturns and trade disputes, such as those seen in NAFTA, can hinder market growth by creating uncertainty and affecting consumer spending.

Data coverage: The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the funding values from different industries for the market.

Modeling approach / Market size:Market sizes are determined through a top-down approach with a bottom-up validation, building on a specific rationale for each market. As a basis for evaluating markets, we use annual financial reports, funding data, and third-party data. In addition, we use relevant key market indicators and data from country-specific associations such as GDP, number of internet users, number of secure internet servers, and internet penetration. This data helps us estimate the market size for each country individually.

Forecasts:In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the S-curve function and exponential trend smoothing are well suited to forecast digital products and services due to the non-linear growth of technology adoption. The main drivers are the level of digitalization, the number of secure internet servers, and the revenue of the Public Cloud market.

Additional Notes: The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russian-Ukraine war are considered at a country-specific level. The market is updated twice a year. In some cases, the market is updated on an ad-hoc basis (e.g., when new, relevant data has been released or significant changes within the market have an impact on the projected development). Data from the Statista Consumer Insights Global survey is weighted for representativeness.