AI/ML in Media and Entertainment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global AI and ML in Media and Entertainment Market is projected to expand significantly, rising from USD 24.19 Billion in 2025 to USD 108.61 Billion by 2031, reflecting a CAGR of 28.44%. This market encompasses sophisticated computational systems engineered to automate content creation, refine distribution processes, and provide personalized viewing experiences via predictive analytics. Growth is chiefly driven by the surging demand for customized content suggestions and the imperative to enhance operational efficiency amid escalating production expenses. Additionally, the adoption of generative AI is fast-tracking creative tasks like visual effects and scriptwriting, allowing media entities to optimize supply chains and achieve substantial resource savings.

However, the industry encounters a major obstacle concerning the dependability and precision of automated outputs, which poses a threat to editorial standards and brand standing. The occurrence of algorithm-induced inaccuracies or hallucinations is a distinct worry for broadcasters and publishers who demand exactness. For instance, a 2025 study by the European Broadcasting Union found that 45% of AI-generated responses in news applications contained at least one major error. This reliability gap necessitates rigorous human supervision, consequently delaying the widespread deployment of autonomous systems and hindering broader market growth.

Market Drivers

The swift integration of generative AI into creative content production is transforming the media supply chain by automating intricate processes such as scriptwriting, visual effects, and localization. This technological evolution enables studios to shorten production cycles and optimize resource allocation, transitioning from experimental phases to comprehensive implementation. According to Google Cloud's September 2025 report, 'ROI of Gen AI in Media and Entertainment,' 72% of media executives report that their companies are already achieving compounding returns from these initiatives. As these tools advance, they allow creators to generate high-quality assets at significantly lower costs, meeting the industry's demand for scalable content creation while alleviating financial strains.

Concurrently, the refinement of targeted advertising through predictive audience analytics is fueling major revenue growth by enabling platforms to offer highly personalized viewer experiences. Advertisers are increasingly using machine learning to parse extensive user behavior data, ensuring commercial content reaches specific demographics with great accuracy. This efficiency is highlighted by financial results; the Interactive Advertising Bureau's 'Internet Advertising Revenue Report' from April 2025 noted that digital ad revenue reached a record $258.6 billion in 2024, driven largely by AI-powered personalization and measurement. This ability to monetize is vital as consumption patterns shift; the Reuters Institute's 'Digital News Report' from June 2025 reveals that 15% of consumers under 25 now rely on AI assistants as their main news source, underscoring the need for adaptive strategies.

Market Challenges

The Global AI and ML in Media and Entertainment Market encounters a substantial hurdle regarding the dependability and factual correctness of automated content creation. Media entities rely heavily on sustaining brand credibility and public confidence, making the dissemination of algorithmically generated errors or hallucinations a significant risk. Since current generative models can produce misleading or incorrect narratives, organizations must implement rigorous human oversight layers. This necessity for manual verification undermines the expected efficiency improvements and cost savings, effectively stalling the incorporation of these technologies into essential production workflows.

As a result, the risk of reputational harm curbs the enthusiasm of broadcasters and publishers to utilize autonomous systems for public-facing uses. This reluctance is bolstered by audience skepticism concerning the authenticity of machine-generated media. According to the Reuters Institute for the Study of Journalism, in 2024, 52% of U.S. respondents expressed discomfort with news primarily produced by AI, citing concerns over accuracy and misinformation. This lack of consumer trust prevents the market from expanding into high-value automated content distribution, restricting AI application to lower-risk administrative tasks.

Market Trends

The rise of adaptive non-player character (NPC) intelligence in video game development marks a significant transition from static scripts to dynamic, reactive entities that enhance player immersion. Developers are increasingly applying machine learning to populate virtual worlds with NPCs that possess autonomous decision-making capabilities and realistic social interactions, creating more organic and unpredictable environments without the need for exhaustive manual coding. This trend is gaining momentum as studios aim to boost replayability and engagement; according to Unity's 'Unity Gaming Report 2024' released in March 2024, 64% of developers using AI for world-building now employ these tools specifically to create and populate NPCs.

At the same time, the deployment of AI-driven automated sports highlight generation is transforming how broadcasters capture and distribute live content to mobile-first audiences. By utilizing computer vision algorithms that instantly recognize key moments like goals, baskets, or crowd reactions, rights holders can automatically edit and format clips for immediate social media sharing, drastically cutting the delay inherent in traditional editing. This innovation meets the demand for rapid, short-form content on platforms such as TikTok and Instagram; WSC Sports reported in December 2024 that the production of AI-generated vertical video highlights increased by 81% year-over-year, driven by the growing appetite for mobile-optimized viewing.

Key Players Profiled in the AI and ML in Media and Entertainment Market

• IBM Corporation
• Microsoft Corporation
• Google LLC
• Amazon Web Services, Inc.
• NVIDIA Corporation
• Adobe Inc.
• Synthesia Ltd.
• Veritone, Inc.
• Sony Corporation
• Oracle Corporation

Report Scope

In this report, the Global AI and ML in Media and Entertainment Market has been segmented into the following categories:

AI and ML in Media and Entertainment Market, by Solutions:

• Hardware
• Services

AI and ML in Media and Entertainment Market, by Application:

• Gaming
• Fake Story Detection
• Plagiarism Detection Personalization
• Production Planning & Management
• Sales & Marketing
• Talent Identification
• Content Capture
• Others

AI and ML in Media and Entertainment Market, by End User:

• Film and Television
• Music
• Sports
• Media Agencies
• Others

AI and ML in Media and Entertainment Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global AI and ML in Media and Entertainment Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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