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Artificial Intelligence (AI) in Social Media Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

  • ID: 4622629
  • Report
  • January 2021
  • Region: Global
  • 120 Pages
  • Mordor Intelligence


  • Amazon Web Services, Inc
  • Clarabridge Inc.
  • Facebook, Inc.
  • HootSuite Media Inc.
  • Meltwater News US Inc.
  • Salesforce.com Inc.
The AI Market in Social Media valued at USD 815.33 million in 2020 and is expected to reach USD 3,714.89 million by 2026, recording a CAGR of 28.77%, during the forecast period of 2021-2026. 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 are driving the market.
  • Many institutions have adopted AI interfaced-chatbots for their client interactions with BFSI sector investing significantly in banking assistants. For instance, HDFC Bank transforming itself through technology introduced EVA (Electronic Virtual Assistant) Chatbot in 2018.
  • E-commerce companies are leveraging AI technology for personalized product recommendations on social media users’ profiles. For instance, Amazon’s product recommendations powered by AI are integrated into every aspect of the purchasing process.

Key Market Trends

Retail Industry to Witness a Significant Growth

The expectations for assistive experiences will continue to boost application of AI in social media for retailers. Both the technologies are rapidly taking over the world of marketing, by replacing most of the traditional methods of advertising, such as TV, pamphlets, and newspaper ads.
  • AI is enabling the retail industry to provide personalized product recommendations, data-driven in-store experiences and image recognition search through consumer’s social posts uncovering hidden patterns in the massive datasets.
  • According to a recent study by IBM Corporation, 91% of retail executives familiar with Artificial Intelligence believe that it will play a disruptive role in their organization.
  • For retailers like Target, Walmart, and others, which depend on increased consumer expenditure and strong competition from e-commerce platforms, AI adoption for boosting sales and loyalty is crucial.

Asia Pacific to Expect Highest Growth Rate

There has been on an upswing in the region, over the past few years, owing to the increased adoption of artificial intelligence, by both public and private sectors.
  • Significant investments are made by tech giants into AI technology in China promising growth potential. In 2018, Microsoft Research Asia and Amazon Web Services both announced new labs in Shanghai.
  • In July 2017, China’s State Council issued the New Generation Artificial Intelligence Development Plan (AIDP) which forms the core of China’s AI strategy.
  • 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, etc., are shifting toward artificial intelligence, to bolster their performance on social media channels.
  • The Asia-Pacific populace continues to use social media with approximately 1.997 billion active social media users in 2019 signaling a positive sign for marketers who are adopting AI, to promote their brands and products.

Competitive Landscape

The competitive rivalry in the market is high with the dominance of players like Microsoft Corporation, Google LLC and Amazon Web Services among others. The organizations are exploring new areas of AI applications testing the capabilities of machine learning and deep learning.
  • IBM Corporation is set to combine capabilities with Apple Inc. in machine learning, AI and cloud to bring to market two new offerings, IBM Watson Services for Core ML and the IBM Cloud Developer Console for Apple.
  • In 2018, Clarabridge was named a Leader and a Strong Performer in the recent AI-Based Text Analytics Wave and AI-Fueled Speech Analytics New Wave2 respectively.
  • Adobe's acquisition of Uru, an AI startup that embeds ads in videos in 2018 and acquiring Sayspring, a platform that lets users design, build, and prototype voice apps like Alexa skills or Google Assistant actions.

Reasons to Purchase this report:
  • The market estimate (ME) sheet in Excel format
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  • Amazon Web Services, Inc
  • Clarabridge Inc.
  • Facebook, Inc.
  • HootSuite Media Inc.
  • Meltwater News US Inc.
  • Salesforce.com Inc.

4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Force 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 Technology Roadmap
4.4 Introduction to Market Drivers and Restraints
4.5 Market Drivers
4.5.1 Integration of Artificial Intelligence Technology with Social Media for Effective Advertising
4.5.2 Increase in User Engagement on Social Media by Using Smartphones
4.5.3 Rise in Use of AI in Understanding Market Trends and Gaining Competitive Edge
4.6 Market Restraints
4.6.1 Limited Number of Artificial Intelligence Technology Experts
4.6.2 Low Adoption of AI in Developing Economies
4.7 Market Opportunities
5.1 Technology
5.1.1 Machine Learning and Deep Learning
5.1.2 Natural Language Processing (NLP)
5.2 Application
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 Service
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
5.5.1 Retail
5.5.2 E-commerce
5.5.3 Banking, Financial Services and Insurance (BFSI)
5.5.4 Media and Advertising
5.5.5 Education
5.5.6 Other End-user Industries
5.6 Geography
5.6.1 North America US Canada
5.6.2 Europe UK Germany France Spain Rest of Europe
5.6.3 Asia Pacific China Japan India South Korea Rest of Asia-Pacific
5.6.4 Latin America
5.6.5 Middle East and Africa
6.1 Company Profiles
6.1.1 Google LLC
6.1.2 Microsoft Corporation
6.1.3 Facebook, Inc.
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
  • Facebook, Inc.
  • 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.