Austin, Texas, USA, January 23, 2025
Futurum Launches Two Major Reports on AI, a Market Forecast and a Survey of Key Decision-Makers
More than half of organizations expect AI to drive major business transformation by 2027-2029 as the market is projected to reach $440B, according to a new Futurum Research report.
The global AI software and tools market reached $127.1 billion in 2024 (see Figure 1) and is projected to grow at 28.2% CAGR to $439.9 billion by 2029, according to a comprehensive new research from The Futurum Group. Meanwhile, Futurum’s 2H 2024 AI Software & Tools Decision Maker Survey reveals 56% of organizations expect AI to fundamentally transform their industries within 5 years, driven by increasing enterprise-wide adoption of AI capabilities.
Figure 1: AI Software/Tools Market (2023–2029; in USD Million)

Nick Patience, VP & AI Practice Lead at Futurum, said, “Organizations are rapidly progressing in their AI maturity, with a third already optimizing their AI implementations and another 23% achieving standardization. This signals a significant shift from experimentation to strategic enterprise-wide deployment.”
The research reveals several key developments shaping the AI software landscape:
- More than half (56%) of organizations expect Generative AI to cause either ‘fundamental industry disruption and business model transformation’ or ‘widespread operational and functional transformation’ to their industry.
- 78% of organizations plan to evaluate new AI vendors in 2025.
- Customer service (69%) and content generation (65%) are identified as leading use cases for Generative AI.
- North America maintains the largest share at $69.0B, while APAC shows highest growth potential at 29.4% CAGR.
Major providers such as AWS (68%), Microsoft (63%), and Google (57%) lead in cloud-based AI tools, while Accenture (52%) dominates implementation services. Technical expertise (52%) and data privacy controls (51%) top organizations’ vendor selection criteria.
“The findings underscore a clear trend toward enterprise-wide AI adoption,” noted Patience. “While organizations still face challenges around data privacy and talent gaps, the focus on operational efficiency and enhanced customer experience is driving sustained investment in AI capabilities.”
The survey reveals a maturity split we’re seeing in organizational approaches to AI. While 61% of organizations currently rely on outsourcing AI solutions, there’s a clear correlation between company size and implementation strategy. Larger enterprises with over 10,000 employees are increasingly building in-house capabilities, while smaller companies prefer SaaS and embedded AI solutions. This bifurcation in approach suggests a more diverse and specialized AI vendor ecosystem in 2025, with providers needing to offer both comprehensive enterprise platforms and focused, industry-specific applications.
Read more in the reports “2H 2024 AI Software & Tools Market Sizing & Five-Year Forecast” and “2H 2024 AI Software & Tools Decision Maker Survey Report” now available on the Futurum Intelligence Platform.
About Futurum Intelligence for Market Leaders
Futurum Intelligence’s Artificial Intelligence IQ service provides actionable insight from analysts, reports, and interactive visualization datasets, helping leaders drive their organizations through transformation and business growth. Subscribers can log in at https://app.futurumgroup.com/. Additional information for non-subscribers can be found here: Artificial Intelligence Software and Tools.
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Other insights from The Futurum Group:
Futurum Research 2025 Key Issues & Predictions
Do AI Foundation Model Specialists Have a Long-Term Future?
Author Information
Nick is VP and Practice Lead for AI at The Futurum Group. Nick is a thought leader on the development, deployment and adoption of AI - an area he has been researching for 25 years. Prior to Futurum, Nick was a Managing Analyst with S&P Global Market Intelligence, with responsibility for 451 Research’s coverage of Data, AI, Analytics, Information Security and Risk. Nick became part of S&P Global through its 2019 acquisition of 451 Research, a pioneering analyst firm Nick co-founded in 1999. He is a sought-after speaker and advisor, known for his expertise in the drivers of AI adoption, industry use cases, and the infrastructure behind its development and deployment. Nick also spent three years as a product marketing lead at Recommind (now part of OpenText), a machine learning-driven eDiscovery software company. Nick is based in London.