Authored By: Sarah
11 Jul 2024

 AI in Games Market Size to grow by USD 4501.72 million between 2024-2028

According to a research report “ AI in Games Market” by Type (AI enabled platforms, AI enabled games) Technology (Machine learning, Natural language processing, Computer vision, Robotics) Geography (North America, APAC, Europe, South America, Middle East and Africa)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 4501.72 million, at a CAGR of  24.65% during the forecast period. In the burgeoning market of AR and VR gaming, the integration of artificial intelligence (AI) is revolutionizing the user experience. AI-generated content enhances gaming visuals and audio in real-time, creating a more immersive environment for players. Virtual reality (VR) and augmented reality (AR) experiences benefit significantly from AI algorithms, which generate dynamic game settings based on player inputs and produce realistic 3D representations of gaming characters and environments. This innovation not only increases user engagement but also sets a new standard for gaming technology. Game developers are increasingly favoring AR and VR games over traditional devices due to the limitless possibilities offered by AI.

Browse market data tables, figures, and in-depth TOC on “AI in Games Market” by Type (AI enabled platforms, AI enabled games) Technology (Machine learning, Natural language processing, Computer vision, Robotics) Geography (North America, APAC, Europe, South America, Middle East and Africa) Global Forecast to 2028. Download Free Sample


By Type, the AI enabled platforms segment is projected to dominate the market size in 2024

Machine learning, a subset of artificial intelligence, is significantly transforming various industries, including healthcare and finance. In the gaming sector, machine learning has emerged as a game-changer. Developers are leveraging machine learning to create more realistic gaming experiences by developing AI bots that function as formidable opponents or teammates. This innovation is not only enhancing user experience but also aiding in time and resource savings. Machine learning plays a pivotal role in two primary aspects of game development: assisting in game creation and acting as a gaming companion. By employing advanced machine learning algorithms, developers can create sophisticated non-player character (NPC) behaviors, making enemies appear more lifelike and challenging. This technology's integration into game development processes is revolutionizing the industry, providing players with immersive and engaging experiences.

By Technology, Machine learning  segment is expected to hold the largest market size for the year 2024

An advanced AI platform is a collection of integrated tools that facilitates the development, testing, deployment, and upkeep of deep learning and machine learning models. AI technology employs diverse tools and methodologies to enable machines to execute complex tasks, such as data analysis, forecasting, and decision-making, more efficiently and precisely than humans. In the gaming industry, AI-driven platforms are revolutionizing game production by enabling developers to create intricate games, environments, characters, and narratives more rapidly. Additionally, AI's ability to analyze player behavior and data provides valuable insights into player tendencies and preferences, resulting in more personalized and engaging gaming experiences. Leading businesses, including Microsoft and Alphabet AI, are at the vanguard of this transformation, offering powerful AI-driven platforms and tools that are redefining the game production landscape.

North America is forecasted to hold the largest market size by region in 2024

The North American AI in games market is projected to expand significantly during the forecast period, fueled by the surging demand for AI-driven games. The burgeoning popularity of esports in the region, with major tournaments such as the International DOTA 2 championship, has led to an influx of professional gamers in countries like the US. In response, game developers and publishers are investing heavily in multiplayer games to cater to this growing market segment. The integration of AI technology in esports titles is a key trend driving engagement and fan base expansion, thereby propelling the regional market's growth.

The AI in Games Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Alphabet Inc.
  • Capcom Co. Ltd.
  • Charisma Entertainment Ltd.
  • Electronic Arts Inc.
  • Konami Group Corp.
  • Latitude
  • Microsoft Corp.
  • NetEase Inc.
  • Nintendo Co. Ltd.
  • NVIDIA Corp.
  • PrometheanAI Inc.
  • Side Effects Software Inc.
  • Sony Group Corp.
  • Take Two Interactive Software Inc.
  • Tencent Holdings Ltd.
  • Theai Inc.
  • Ubisoft Entertainment SA
  • Unity Software Inc.
  • Vivendi SE

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Research Analysis Overview

The AI in games market is experiencing rapid growth as developers integrate advanced technologies like image upscaling, machine learning, and deep learning into 3D games. CPUs and GPUs are being pushed to their limits as ML models and neural networks are used for prediction and data analysis. AI-enabled platforms like Euphoria (middleware system) in Red Dead Redemption 2 and Battlefield V are revolutionizing character behavior and physics. Ray tracing, a type of AI technology, enhances lighting and reflections in games, while network latency is being reduced through AI algorithms. AI-generated content is becoming increasingly common, with Cyberpunk 2077 using neural networks to create unique NPC behaviors. Sensors in devices like Microsoft HoloLens 2 are enabling the creation of 3D representations in augmented reality (AR) and virtual reality (VR) games. AI technologies are transforming the gaming industry, providing more immersive and realistic experiences for players.

Market Research Overview

The AI in games market is experiencing significant growth, with mediaeval problems such as complex character behavior and realistic physics simulations being addressed through AI-driven animation techniques and realistic physics simulations. Pixel This, Loom, Voyage platform, and other game developers are leveraging cloud-based services, smart gaming consoles, and edge computing for real-time AI processing. Market growth factors include expertise in AI, ML models, deep learning, and neural networks. AI is revolutionizing gaming, from anti-cheat systems and matchmaking to multiplayer gaming and real-time AI processing. Games like Red Dead Redemption 2, Battlefield V, and Cyberpunk 2077 use AI technologies like Euphoria (middleware system) and ray tracing to create immersive environments and player behavior. AI-generated content, image upscaling, and 3D representations are also becoming increasingly common in 3D games. The rise of cloud gaming, 5G networks, and sensors in smart devices is driving the market further. AI algorithms and ML models are used for prediction and data analysis, enhancing the overall gaming experience. AI-enabled platforms like Microsoft HoloLens 2 are revolutionizing augmented reality (AR) and virtual reality (VR) gaming, offering immersive experiences through AI-generated content and environmental interaction. The future of gaming is bright, with AI technologies continuing to push the boundaries of what is possible.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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