Market Overview
The human-centered AI market size has been growing rapidly in recent years as companies increasingly look to develop AI systems that are transparent, fair, and aligned with human values. This market is expected to reach $50.39 billion by 2032, driven by rising investments from both tech giants and startups. Human-centered AI refers to artificial intelligence designed to augment human intelligence rather than replace it. The goal is to develop AI that enhances people’s capabilities and skills while allowing humans to remain in control. Key focus areas for human-centered AI include explainable AI, trustworthy AI, and AI for social good.
As consumers and regulators grow more concerned about issues like privacy, transparency, and bias in AI, demand for human-centered solutions is skyrocketing. Both B2B and B2C applications focused on areas like personalized recommendations, intelligent virtual assistants, and predictive analytics incorporate human-centered design principles.
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Key Companies
IBM, Microsoft, Google, Apple, Salesforce, SAP, SAS, Automation Anywhere, IPsoft, and Anthropic are some of the major companies driving human-centered AI innovation. Smaller startups playing an important role include Latitude AI, Fiddler Labs, People.ai, and H2O.ai.
Across both larger enterprises and startups, most human-centered AI efforts focus on use cases spanning intelligent agents, computer vision, natural language processing, predictive maintenance, customer support, marketing personalization, and autonomous vehicles. Developing trust and emotional connections between humans and machines is a common theme across these use cases.
Market Segmentation The human-centered AI market can be segmented by components, organization size, applications, industry verticals, and regions.
By Components:
- Solutions
- Services
By Organization Size:
- Large Enterprises
- SMEs
By Applications:
- Personal Assistants
- Customer Support
- Marketing Automation
- Analytics and Insights
- Autonomous Vehicles
By Industry Verticals:
- IT and Telecom
- Retail and eCommerce
- Manufacturing
- Healthcare
- BFSI
- Government
- Other Verticals
By Regions:
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- Latin America
Top Impacting Factors Key factors fueling growth in the human-centered AI market include:
- Rising investments in ethical AI development initiatives by governments, research institutions, and leading companies to address risks like bias and lack of transparency
- Growing stringency around AI regulations and compliance, especially in Europe, focused on trust, explainability, fairness, and human oversight
- Increasing consumer distrust towards pure black-box AI prompting demand for transparent AI solutions
- Shortening AI development cycles allowing quicker integration of human-centered design principles
- Advances in machine learning, neural networks, NLP, and computer vision leading to a surge in real-world AI use cases.
Regional Insights
North America accounted for the largest market share in 2022, driven by robust investments in human-centered AI research by the U.S. and Canadian governments alongside enterprise spending by major cloud providers and end-user companies concentrated in the region.
Asia Pacific is anticipated to register the fastest growth over 2022-2025 fueled by rising adoption of AI solutions across China, ANZ, Japan, and Southeast Asia. Multiple initiatives by governments in the region to become global AI hubs will further Asia Pacific’s position.
Europe will see above-average industry growth supported by strong policy commitments around ethical AI by the EU and individual European nations. The Europe market will also be defined by greater-than-average regulation.
Industry Latest News
Recent notable developments in the human-centered AI space include:
- Tech giant IBM acquiring AI Explainability startup Blueteam AI to strengthen capabilities around trustworthy and fair AI
- Apple announcing certification offerings to train corporate developers on key pillars like accountability and transparency in AI system design
- Startup Anthropic being backed by a $700M investment to build AI assistant Claude focused completely on safety and alignment with human preferences
- The White House Office of Science and Technology Policy releasing an extensive Blueprint for an AI Bill of Rights to set new standards around protecting civil liberties in AI system design
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