Global AI in Knowledge Management Market Size, Share, Statistics Analysis Report By Component (Solution, Services), By Deployment Mode (Cloud-Based, On-Premise), By Organization Size (Small and Medium-Sized Enterprises, Large Enterprises), By Industry Vertical (IT and Telecommunications, BFSI, Healthcare, Manufacturing, Retail, Government and Public Sector, Other Industry Verticals), Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global AI in Knowledge Management Market size is expected to be worth around USD 62.4 Billion By 2033, from USD 6.7 Billion in 2023, growing at a CAGR of 25% during the forecast period from 2024 to 2033. In 2023, North America captured over 37.4% of the AI in Knowledge Management market, generating USD 2.5 billion in revenues, thus holding a dominant market position.

Artificial Intelligence (AI) in knowledge management refers to the integration of AI technologies with the processes of managing, sharing, and utilizing organizational knowledge. The adoption of AI has transformed knowledge management by automating data processing, enhancing information retrieval, and facilitating the organization of vast data sets.

The market for AI in knowledge management is rapidly expanding as organizations recognize the importance of efficiently managing large volumes of data and converting them into actionable insights. Companies are leveraging AI-driven tools to enhance their knowledge management systems, facilitating improved collaboration, innovation, and competitiveness.

The major driving factors for AI in knowledge management include the growing need for automation to handle large data volumes and the demand for improved efficiency and accuracy in data processing and retrieval. Organizations are increasingly relying on AI to enhance decision-making and streamline operations, which in turn supports scalability and adaptability in a rapidly changing business environment​

The market demand for AI in knowledge management is driven by the necessity to manage information overload and improve the quality and speed of decision-making processes. Businesses are looking to leverage AI capabilities to better organize and utilize their knowledge assets, ensuring that employees have timely access to relevant information and insights.

This is particularly crucial in sectors like healthcare, finance, and technology, where being able to quickly interpret and act on information can provide a significant market advantage​. The integration of AI into knowledge management systems presents numerous market opportunities, including the development of more sophisticated AI-driven analytics tools, personalized knowledge delivery systems, and advanced content management solutions.

According to Korra, by 2026, 80% of enterprises will use generative AI (GenAI) APIs, applications, and models in production – a significant leap from less than 5% in 2023. This shift highlights the rapid growth and trust in AI technologies. Across industries, the potential value of AI and analytics is estimated to be between $9.5 trillion and $15.4 trillion, underscoring the transformative power of this technology.

Generative AI is becoming an everyday tool for businesses, with 65% of organizations already using it regularly. Among enterprises developing AI models, 80% are leveraging retrieval-augmented generation (RAG) as their primary method, while only 20% rely on fine-tuning.

AI adoption isn’t limited to businesses. Over 75% of workers globally report using AI tools in their jobs, although many choose not to disclose this to their employers. For organizations implementing GenAI, the top priority is clear: 42% focus on efficiency, productivity, and cost reduction as their main goals.

These advancements are poised to open new pathways for innovation in how knowledge is curated, accessed, and leveraged within organizations​. Technological advancements in AI, such as improvements in machine learning algorithms, the increased capabilities of natural language processing, and the integration of AI with other emerging technologies like blockchain and the Internet of Things (IoT), are continually enhancing the effectiveness of knowledge management systems.

Key Takeaways

• The AI in Knowledge Management Market size is expected to reach USD 62.4 Billion by 2033, up from USD 6.7 Billion in 2023, growing at a CAGR of 25% during the forecast period from 2024 to 2033.
• In 2023, the solution segment dominated the AI in Knowledge Management market, capturing over 70.5% of the market share.
• In 2023, the cloud-based segment held a dominant position, capturing over 68.1% of the market share in the AI in Knowledge Management sector.
• In 2023, the large enterprise segment held a dominant market position, capturing over 66.3% of the market share.
• In 2023, the IT and telecommunications segment held a dominant market position, capturing over 21% of the market share.
• In 2023, North America led the market, holding over 37.4% of the market share, with revenues amounting to USD 2.5 billion.

Component Analysis

In 2023, the solution segment held a dominant market position in the AI in Knowledge Management market, capturing more than a 70.5% share. This prominence is largely due to the critical role these solutions play in the core operations of knowledge management systems.

AI solutions, including machine learning algorithms and natural language processing tools, are fundamental in automating the organization, categorization, and retrieval of vast amounts of data. They are designed to enhance the accuracy and efficiency of knowledge bases, making them indispensable for businesses aiming to optimize information management and decision-making processes.

The solution segment leads over services due to substantial investments by large enterprises and SMEs in AI solutions. These solutions provide the infrastructure for enhancing knowledge management, offering high ROI through improved efficiency and reduced long-term costs.

Furthermore, the increasing complexity of data and the need for scalable solutions that can manage evolving data sets effectively have propelled the adoption of AI solutions. As organizations face growing volumes of unstructured data, the demand for robust AI solutions that can autonomously update and maintain knowledge repositories becomes critical.

Deployment Mode Analysis

In 2023, the cloud-based segment held a dominant position in the AI in knowledge management market, capturing more than 68.1% of the market share. This segment’s leading status can be attributed to the scalability, flexibility, and cost-efficiency that cloud-based solutions offer.

Organizations, especially those with limited IT infrastructure, prefer cloud-based platforms as they provide easy access to advanced AI capabilities without significant upfront investments. The ability to integrate seamlessly with multiple data sources and systems further enhances the attractiveness of cloud-based deployment.

The superiority of the cloud-based segment is also reinforced by its capability to facilitate remote collaboration and information sharing. In the context of increasing remote work trends and global operations, businesses demand solutions that support real-time data access and collaboration across geographies.

Looking forward, the cloud-based deployment mode is expected to maintain its dominance in the market. The continuous development of cloud infrastructure, coupled with the introduction of more stringent data protection laws, is likely to further boost its adoption.

Organization Size Analysis

In 2023, the large enterprise segment held a dominant market position in the AI in Knowledge Management market, capturing more than a 66.3% share. This considerable market share can be attributed to the substantial resources available to large enterprises, enabling them to invest heavily in advanced AI technologies.

These organizations often possess the financial capabilities to integrate sophisticated AI systems that streamline knowledge management processes, thereby enhancing operational efficiency and data-driven decision-making.

Moreover, large enterprises frequently face complex challenges due to their vast operational scale and diverse geographical presence. To manage extensive databases and derive actionable insights, these corporations implement AI-driven solutions that facilitate effective knowledge management, storage, and retrieval.

The scalability of AI technologies also plays a vital role in their adoption by large enterprises. These organizations require robust systems that can handle large volumes of data and support a wide range of functions from analytics to automated customer service.

Industry Vertical Analysis

In 2023, the IT and telecommunications segment held a dominant market position in the AI in Knowledge Management market, capturing more than a 21% share. This segment’s leadership is primarily driven by the critical need for efficient data management and the high volume of data traffic handled by IT and telecommunications companies.

The IT and telecommunications industry leads in AI adoption, driven by its need to stay ahead in technology. AI enhances knowledge management, streamlining operations, reducing costs, and maintaining a competitive edge in a fast-evolving market.

AI in the telecom sector enhances decision-making by predicting customer behavior, personalizing services, and optimizing network management. These capabilities boost customer loyalty and operational efficiency, driving the segment’s dominance in the AI in Knowledge Management market.

Regulatory compliance and the need for cybersecurity in the IT and telecommunications sector further fuel the adoption of AI. These companies handle sensitive data requiring stringent data protection measures, where AI plays a pivotal role in automating and enhancing security protocols.

Key Market Segments

By Component

• Solution
• Services

By Deployment Mode

• Cloud-Based
• On-Premise

By Organization Size

• Small and Medium-Sized Enterprises
• Large Enterprises

By Industry Vertical

• IT and Telecommunications
• BFSI
• Healthcare
• Manufacturing
• Retail
• Government and Public Sector
• Other Industry Verticals

Driver

Enhanced Knowledge Discovery and Retrieval

Artificial Intelligence (AI) significantly improves knowledge management by enhancing the discovery and retrieval of information. AI-powered systems utilize natural language processing and machine learning to understand and interpret vast amounts of data, enabling organizations to access relevant information swiftly.

This capability reduces time spent searching for information and increases productivity. For instance, AI can analyze user queries to provide precise answers, facilitating efficient decision-making processes. By automating the organization and categorization of knowledge, AI ensures that information is readily available, supporting informed decision-making and fostering innovation within organizations.

Restraint

Data Quality and Integration Issues

The effectiveness of AI in knowledge management is heavily dependent on the quality and integration of data. Many organizations face challenges with data silos, inconsistent formats, or incomplete information, which can hinder the accuracy of AI models.

For AI to be effective, it requires high-quality, clean, and well-organized data. Organizations need to invest in proper data governance and ensure that their data is well-integrated across different systems and departments.

Opportunity

Driving Innovation through AI Integration

Integrating AI into knowledge management presents significant opportunities for driving innovation within organizations. AI can play a critical role in fostering innovation by uncovering hidden knowledge or identifying emerging trends.

By analyzing historical data, AI can reveal new opportunities for product development, process optimization, or market expansion. Additionally, AI tools like idea management platforms can help crowdsource innovative solutions from employees across the organization, ensuring that all voices are heard and valuable ideas are captured.

Challenge

Resistance to Change among Employees

The introduction of AI into knowledge management systems can be met with resistance from employees who fear job displacement, lack understanding of the technology, or feel overwhelmed by the new tools.

Ensuring that employees are comfortable with AI tools is essential for successful adoption. This can be achieved by fostering a culture of collaboration, offering training, and demonstrating how AI can enhance not replace human roles in knowledge management.

Emerging Trends

Artificial intelligence (AI) is reshaping how businesses handle knowledge management, introducing several emerging trends that enhance efficiency and decision-making.

One significant development is the use of AI to automate content creation and organization. AI tools can quickly generate reports, summaries, and FAQs from existing data, reducing manual effort and ensuring information is current and well-structured.

Another trend is the improvement of search and retrieval processes through AI. By employing advanced search algorithms and natural language processing, AI enables knowledge management systems to provide more accurate and context-aware results.

AI also enhances personalized knowledge sharing by analyzing individual user behaviors and preferences. This allows AI to suggest relevant content, documents, and experts tailored to each employee’s needs, promoting efficient knowledge dissemination and better decision-making.

Additionally, AI-powered analytics can uncover trends and insights within large data volumes, helping businesses identify knowledge gaps and monitor the effectiveness of their knowledge-sharing practices. This data-driven approach supports continuous improvement in knowledge management strategies.

Business Benefits

One major advantage is the automation of routine tasks. AI can handle repetitive activities like content categorization and tagging, freeing employees to focus on more strategic initiatives. This shift not only boosts operational efficiency but also fosters innovation and growth by empowering employees to engage in higher-value tasks requiring creativity and critical thinking.

AI also improves decision-making by providing real-time analytics and insights. By analyzing large volumes of data, AI can uncover patterns and trends that inform strategic decisions, leading to better business outcomes. This capability enables organizations to respond swiftly to changing market conditions and customer needs.

Furthermore, AI enhances customer service by powering chatbots and virtual assistants that provide instant support and information to customers. This leads to improved customer satisfaction and loyalty, as clients receive timely and accurate responses to their inquiries.

Regional Analysis

In 2023, North America held a dominant market position in the AI in Knowledge Management market, capturing more than a 37.4% share with revenues amounting to USD 2.5 billion.

North America’s market leadership is driven by its advanced tech infrastructure and early adoption of AI across industries. Companies in the region have been integrating AI solutions into business processes, particularly in knowledge management, to boost efficiency and competitiveness.

The concentration of major AI technology developers and providers in North America also significantly contributes to the region’s dominance. These companies are continuously innovating and expanding their solution offerings, driving the adoption of advanced knowledge management solutions within local and global markets.

Furthermore, the high priority given to data analytics and decision-making capabilities in North American enterprises fuels the demand for AI-enhanced knowledge management systems. Businesses in this region are increasingly focused on leveraging AI to gain actionable insights from their data repositories, which enhances decision-making and operational efficiency.

The growing trend towards digital transformation across industries such as healthcare, finance, and retail in North America has led to an increased need for efficient knowledge management solutions. AI technologies play a crucial role in managing the sheer volume and variety of data generated by these sectors, ensuring that North America remains at the forefront of the AI in Knowledge Management market.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Singapore
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Player Analysis

In the AI in Knowledge Management market, several key players stand out due to their innovative solutions and market influence.

Microsoft Corporation is a pivotal player in the AI in Knowledge Management sector. With its robust suite of AI tools integrated into Microsoft Azure, the company offers a comprehensive range of solutions that enhance knowledge management capabilities for businesses globally.

Oracle Corporation also commands a significant presence in this market with its AI-powered solutions tailored for database management and analytics. Oracle’s AI applications are deeply integrated into its cloud services, providing users with powerful tools for data analysis, pattern recognition, and automated decision-making processes.

SAP SE stands out for its emphasis on integrating AI into enterprise resource planning (ERP) systems. SAP’s AI and machine learning capabilities are designed to support complex business processes and improve knowledge management through enhanced data processing and interpretation.

Top Key Players in the Market

• IBM Corporation
• Microsoft Corporation
• Oracle Corporation
• SAP SE
• eGain Corporation
• ServiceNow, Inc.
• Atlassian Corporation
• Coveo
• Lucidworks
• Bloomfire
• Mindbreeze GmbH
• Other Key Players

Top Opportunities Awaiting for Players

Artificial Intelligence (AI) is transforming knowledge management (KM), offering several promising opportunities for market players.

• Enhanced Intelligent Search and Knowledge Retrieval: AI is enhancing search functions within KM systems, enabling more accurate and context-aware search results. Machine learning algorithms are increasingly used to analyze user behavior and optimize search processes, ensuring that users can find relevant information swiftly and efficiently​.
• Proactive Knowledge Discovery and Management: AI is shifting KM from a passive to a proactive endeavor. Through continuous scanning of internal and external data sources, AI can uncover emerging trends, technologies, and best practices, ensuring that knowledge bases remain up-to-date and relevant. This ability not only streamlines the discovery process but also helps in keeping the organizational knowledge fresh and actionable​.
• Collaboration and Content Management: AI-driven platforms are fostering better collaboration by breaking down silos and facilitating more effective knowledge sharing across departments. Content tagging and management, powered by AI, allow for better organization and retrieval of information, which enhances cross-functional collaboration and decision-making​.
• Personalization and User Experience: AI is personalizing user experiences in KM by analyzing individual interactions and preferences to tailor content and recommendations. This ensures that each user receives information that is most relevant to their specific needs, thereby enhancing engagement and productivity​.
• Automated Content Curation: AI automates content curation by organizing and updating knowledge bases. This ensures that information remains current and well-structured, reducing manual effort and improving accessibility.

Recent Developments

• In May 2024, during its Knowledge 2024 conference, ServiceNow announced the extension of its generative AI solutions. These enhancements are designed to help organizations work smarter and more efficiently by automating complex processes and improving decision-making.
• In August 2024, Bloomfire was honored by CIO Review for its innovative AI-powered solutions that transform how organizations access and leverage knowledge.

Report Scope