In today's digital era, social media has emerged as a leading source of valuable customer intelligence data, enabling businesses to better understand their consumer base. With an increasing number of social media users demanding sophisticated AI solutions for enhanced user experience, the market for AI in Social Media is projected to experience significant growth.
Deploying AI in social media opens numerous possibilities for diverse sectors, from enabling targeted advertising to transforming the consumer experience. Key sectors such as Banking, Financial Services and Insurance (BFSI), and retail are leveraging AI-infused chatbots and personalized product recommendations to offer superior client interaction, leading to deeper customer connections. Companies like Amazon are using AI-driven solutions to streamline the buying process.
Investing in the wealth of intelligence that social media data provides can unlock significant market opportunities, offering competitive advantage in today's fast-paced digital age. However, with the complexity of AI technology, there is an ongoing need for expertise in managing, creating, and integrating AI systems, posing potential challenges to market growth.
Social media has become one of the primary sources of customer intelligence data. With the growth in social media users, the demand for AI solutions to understand customer preferences is projected to increase over the forecast period.
- Integration of artificial intelligence technology with social media for effective advertising and to gain a competitive edge is driving the market. Investing a lot in banking assistants, many institutions now use chatbots with AI interfaces to talk to their clients in the BFSI sector.
- E-commerce companies are leveraging AI technology for personalized product recommendations on social media users' profiles. For example, Amazon's AI-driven product recommendations are built into every step of the buying process.
- Moreover, the increased use of AI tools is projected to boost demand for AI in social media. For instance, in January 2022, Cadbury launched an initiative to allow small business owners to make free advertisements using an AI tool that uses a celebrity's face and voice.
- By gathering data from social media platforms, AI was able to predict the spread of COVID-19 infections, create early warning systems, and provide useful information about sensitive locations as well as predict illness and mortality.
AI in Social Media Market Trends
Retail Industry to Witness a Significant Growth
- The growing social media usage for online shopping and other e-commerce activities is expected to propel the retail segment's growth. Social media platforms are becoming increasingly popular as retail businesses use them to strengthen customer relationships. AI in social media helps retail brands predict marketing trends, make their promotions more effective, rank higher than their competitors, and get other benefits.
- AI makes it possible for the retail industry to offer personalized product suggestions, in-store experiences that are based on data, and image recognition searches through social media posts to find hidden patterns.
- Retailers like Target, Walmart, and others need to use AI to boost sales and customer loyalty because they depend on consumers spending more and face tough competition from e-commerce platforms.
- In July 2022, Google partnered with the H&M Group, a multinational fashion retailer. The firms plan to design and create a corporate data backbone through this partnership, including a core data platform, cutting-edge ML and AI capabilities, and data products.
- Moreover, in March 2022, Microsoft collaborated with ASOS, a British fashion retailer. The firms agreed to collaborate on a new project to accelerate Microsoft's strategic growth ambitions. Furthermore, this collaboration is expected to enable businesses to fulfill the growing demand for improved product availability and seamless and personalized digital experiences.
North America is Expected to Hold Significant Market Share
- In the last few years, the area has been getting better because more money has been put into it to improve AI technology solutions.
- In April 2022, government activities and investments assist market growth. For instance, the Government of Canada declared that it would invest in enterprises and innovative technology. The Federal Economic Development Agency for Southern Ontario, FedDev Ontario, has announced a USD 5.7 million investment in the artificial intelligence (AI) business Canvass Analytics Inc. (Canvass AI).
- The growing investment in AI by various companies is expected to drive AI in the social media market in the region. For instance, in October 2022, Google, a subsidiary of Alphabet Inc., will be in talks to invest around USD 200 million in the Canadian start-up Cohere Inc. The startup in artificial intelligence made a long-term deal with Google to provide processing power for training its software models.
- Social media platforms are one of the first choices for marketing products and services. As a result, end users, such as BFSI, e-commerce, retail, and others, are shifting toward artificial intelligence to bolster their performance on social media channels.
AI in Social Media Industry OverviewThe competitive rivalry in market is highly competitive with the dominance of players like Microsoft Corporation, Google LLC, and Amazon Web Services, among others. The market appears to be fragmented. Due to the growing use of AI in social media, significant players are implementing strategies such as partnerships, product innovation, mergers, and acquisitions.
In October 2022, Google Cloud announced a partnership with Snap Inc. (Snap), in which the firm will use Google's data, AI/ML, and analytics technologies to enable Snapchat's development. After working together for more than ten years, Snap will use Google Cloud more to improve the customer experience and offer more customized solutions.
August 2022 - Veritone, Inc., the provider of aiWARE, a hyper-extensive corporate artificial intelligence (AI) platform, announced an expansion of its collaboration with Amazon Web Services (AWS) to better serve its Media & Entertainment (M&E) customers. Veritone joined the AWS for Media & Entertainment program last year, which assisted rights holders, content creators, distributors, and producers in quickly identifying industry-specific AWS capabilities and accelerating transformation across five key industry innovation hubs. By continuing to support the AWS for Media & Entertainment program, Veritone shows that it is still committed to making it easier for IP owners of all sizes to create, distribute, and eventually make money from their content.
July 2022 - Meta, Facebook's parent company, will unveil Sphere, a new AI-powered tool. The tool helps to address and detect misinformation, also known as "fake news," on the internet. Meta claims to be the first [AI] system capable of scanning many citations at once to determine whether they genuinely support the relevant assertions.
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
Table of Contents
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Threat of New Entrants
4.2.2 Bargaining Power of Buyers/Consumers
4.2.3 Bargaining Power of Suppliers
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assesment of Impact of COVID-19 on the market
4.4 Technology Roadmap
4.5 Introduction to Market Drivers and Restraints
4.6 Market Drivers
4.6.1 Integration of Artificial Intelligence Technology with Social Media for Effective Advertising
4.6.2 Increase in User Engagement on Social Media by Using Smartphones
4.6.3 Rise in Use of AI in Understanding Market Trends and Gaining Competitive Edge
4.7 Market Restraints
4.7.1 Limited Number of Artificial Intelligence Technology Experts
4.7.2 Low Adoption of AI in Developing Economies
4.8 Market Opportunities
5.1.1 Machine Learning and Deep Learning
5.1.2 Natural Language Processing (NLP)
5.2.1 Customer Experience Management
5.2.2 Sales and Marketing
5.2.3 Image Recognition
5.2.4 Predictive Risk Assessment
5.2.5 Other Applications
5.3.1 Managed Service
5.3.2 Professional Service
5.4 Organization Size
5.4.1 Small and Medium Enterprises
5.4.2 Large Enterprises
5.5 End-User Industry
5.5.3 Banking, Financial Services and Insurance (BFSI)
5.5.4 Media and Advertising
5.5.6 Other End-user Industries
5.6.1 North America
220.127.116.11 Rest of Europe
18.104.22.168 South Korea
22.214.171.124 Rest of Asia-Pacific
5.6.4 Latin America
5.6.5 Middle East and Africa
6.1.1 Google LLC
6.1.2 Microsoft Corporation
6.1.4 Amazon Web Services, Inc
6.1.5 IBM Corporation
6.1.6 Adobe Systems Incorporated
6.1.7 Salesforce.com Inc.
6.1.8 Baidu Inc.
6.1.9 Snap Inc.
6.1.10 Clarabridge Inc.
6.1.11 HootSuite Media Inc.
6.1.12 Meltwater News US Inc.
6.1.13 Crimson Hexagon Inc.
6.1.14 Sprout Social Inc.
A selection of companies mentioned in this report includes:
- Google LLC
- Microsoft Corporation
- Amazon Web Services, Inc
- IBM Corporation
- Adobe Systems Incorporated
- Salesforce.com Inc.
- Baidu Inc.
- Snap Inc.
- Clarabridge Inc.
- HootSuite Media Inc.
- Meltwater News US Inc.
- Crimson Hexagon Inc.
- Sprout Social Inc.