AI in Social Media Market Size, Share and Trends 2024 to 2034

AI in Social Media Market Size and Forecast 2024 to 2034

The global AI in social media market size is calculated at USD 2.45 billion in 2024 and is projected to reach around USD 54.07 billion by 2034, expanding at a CAGR of 36.25% from 2024 to 2034. The rising demand to find important data sets for marketing purposes, to leverage the companies' creative content, and to increase customer satisfaction is growing the adoption of the AI in social media market.

AI in Social Media Market Key Takeaways

• North America dominated the AI in social media market in 2023.
• Europe is anticipated to grow at the fastest CAGR in the market during the forecast period.
• By technology, the deep learning segment stood dominant in the market in 2023.
• By technology, the natural language processing segment is expected to grow at the fastest rate in the market during the forecast period of 2024 to 2034.
• By component, the solution segment contributed the biggest share of the market in 2023.
• By component, the service segment is expected to register the fastest growth in the market during the forecast period. 
• By application, the sales & marketing segment contributed to the largest share of the market in 2023.
• By application, the customer experience management segment is anticipated to grow at a significant CAGR in the market during the forecast period.

Market Overview

The implementation of artificial intelligence in social media helps in increasing the productivity and performance of the company. AI in social media tools provides a deep understanding of the audience, predicts types of content that resonate most, automatically creates posts and images, detects consumer trends, and much more. At present, every social media platform uses AI functions. AI algorithms are used to analyze the data and behavior to deliver personalized content to the users. The concept of content curation is widely used here. Companies need to keep the user engaged and spend more time on the platform.

• According to a survey conducted, 51% of markets use at least some form of artificial intelligence tool. 3 of 4 companies state that implementing AI achieved a 10% or more boost in sales, and 75% of organizations say using AI has helped drive customer satisfaction by 10%.

AI in Social Media Market Growth Factors

• Enhance revenue growth: AI helps in fuelling sales expansion by collecting data on the more engaged posts, discovering new audiences and trends based on sentiment analysis and predicting the target audience.
• Content curation: AI-powered tools analyze the data on social media and determine the strong keywords, images, hashtags, and colors that will make an impact on the audience. Hence, create valuable social media posts according to the brand’s voice.
• Personalization using chatbots: Artificial intelligence provides highly effective customer support and personalized audience experience which help the brand grow. AI chatbots incorporated with machine learning offer 24/7 customer service, and relevant solutions to the problem.
• Competitor analysis: AI tracks the competitors and analyses their social media strategies, reach, engagement rate, conversion rates, brand sentiment, and more. With the help of this, a company can strategize and stay one step ahead of the competitors.
• Malware & spam detection: AI has the potential to easily detect spam & malware and remove them precisely, which helps businesses create a safe and secure environment for users.

Market Scope

Market Dynamics

Driver

Strategic implementation drives the AI in social media market

With the advancement of AI technologies, social media agencies are adapting to the integrated changes. It is essential to select the right tools to integrate the existing social media strategy. Incorporation of AI in specific areas such as content creation, content repurposing, influencer marketing, ad targeting, and optimization boosts the AI in social media market. The monitoring metrics, such as engagement rate, click-through rate, conversion, customer satisfaction, and other features of investment into production, cost reduction, and content creation, are implemented effectively to gain improved results.

Restraints

Privacy concern

As artificial intelligence technology depends on recorded data and with the collection of data, there is a risk of exposing an individual’s privacy. The risk of data breaches or misuse of sensitive information might hold back the customer from experiencing new features, which will directly impact social media marketers’ business. Social media agencies need to ensure that the AI tools they use are equipped with data protection regulations and have security measures. Stringent regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCOA) have been adopted worldwide. Data breaches and misuse can damage the organization’s reputation and break the trust of users, which will impact financial loss and operational disruption.

• In September 2024, Instagram announced some major changes aimed at enhancing its safety and privacy for users under 18 as the platform is facing growing pressure from lawmakers, parents, and interest groups. The app has made parents the major controllers who can monitor the account.

Opportunity

Advanced features for businesses

AI in social media offers various novel opportunities in reshaping the future of social media platforms. Personalized content is an existing feature of AI technology; however, it is still evolving to leverage businesses with the help of technology that deeply understands the behaviors, interests, and preferences of the user, which provides product recommendations, targeted advertisements, and tailored news.

Another advancement that is expected to be witnessed is deepfake detection, which reveals fake videos or images that have been generated using deep learning techniques. Social media companies are implanting reliable deepfake detection tools that will enhance the ability to identify and mitigate potential risks. Additionally, Augmented Reality and Virtual Reality integration build an immersive user experience, which increases customer engagement and delivers more personalized content.

Technology Insights

The deep learning segment stood dominant in the AI in social media market in 2023. The dominance of this segment is attributed to its popularity due to its effectiveness in handling large-scale data.  With the increasing demand for organizations to leverage data-driven decision-making processes, deep learning solutions are surging. Innovative deep-learning techniques are used to monitor aggressive behavior in social media posts. The growing concerns about the prevalence of cyber aggression and its detrimental impact on individuals and communities need to be addressed. Deep learning technique uses sophisticated algorithms and neural network architectures to analyze the nuances of language, context, and sentiment present in social media posts, which can be removed with care.

The natural language processing segment is expected to grow at the fastest rate in the AI in social media market during the forecast period of 2024 to 2034. The growth of this segment is widely noticed in businesses growing through social media marketing. With the help of natural language processing, information can be easily extracted from social media posts about customers and modify the information tailored to marketing campaigns to reach out to the target audience.

Component Insights

The solution segment contributed the biggest share to the AI in social media market in 2023. The dominance of this segment is observed due to strong capabilities in AI and Generative AI engineering, the main expertise in data and analytics, and established credibility in the industry that improves the chain transformation, building an immersive business impact from AI. The AI solutions are designed to resolve real business problems. This allows an open, enterprise-grade AI approach that provides more options and greater flexibility to best fit the business needs.

The service segment is expected to register the fastest growth in the AI in social media market during the forecast period of 2024 to 2034. The service segment transforms businesses by identifying specific areas where AI can enhance business outcomes, delivery efficiency, and innovation.

Application Insights

The sales & marketing segment contributed to the largest share of the AI in social media market in 2023. The sales and marketing segment has transformative potential in the market. With the help of AI algorithms and data analysis, AI reshapes the brand profile among its customers, gaining both sales and loyalty. The sales and marketing sector is expected to equip salespeople with AI-powdered tools that will provide real-time insights and recommendations, which will have a strong impact on the company’s sales and build better relations with customers.

The customer experience management segment is anticipated to grow at a significant CAGR in the AI in social media market during the forecast period of 2024 to 2034. The growth of this segment leads to automating tasks such as data entry, lead scoring, and follow-up reminders. AI in customer experience management systems provides intelligent insights such as predicting leads which are likely to get converted, enabling sales teams to focus their efforts more effectively. Several social media platforms employ AI to improve customer service by quickly addressing the issue through automated responses. In case of further reviewing, the query is forwarded to the human review team for closer inspection.

Regional Insights

North America dominated the AI in the social media market in 2023. The dominance of this region is gaining traction due to greater social media platforms in North America. Along with this, the U.S. government is actively harnessing AI technology to improve the country’s services and operations. 

• The U.S. adults use a wide range of sites and apps, especially YouTube (83%), Facebook (75.3%), Instagram (63.9%), and TikTok (50.2%). 

The federal government has launched various operations and initiatives to leverage AI technologies. AI in social media is a crucial step towards advancing and shaping the global industry landscape. The Canadian government plans to regulate AI in search and social media content moderation and discoverability; this is a significant step toward the digital regulation realm.

Europe is anticipated to grow at the fastest CAGR in the AI in social media market during the forecast period of 2024 to 2034. The growth of this region is due to the EU AI Act, which is making a significant implication for social media platform and their users. This EU AI Act encourages more transparency, accountability, and an ethical approach to AI in social media platforms, which will foster greater trust and safety in the online landscape.

AI in Social Media Market Companies

• Salesforce, Inc.
• Snap Inc. (Snapchat)
• IBM Corporation
• Microsoft Corporation 
• Adobe
• Hootsuite Inc.
• Facebook
• Google LLC (Alphabet)
• Amazon Web Services, Inc.
• Baidu
• Clara bridge
• Sprout Social
• Buffer
• Canva
• Instagram

Recent Developments

• In June 2024, Meta Platform plans to start incorporating European social media content to train their generative AI models. The Llama large language model will be trained using the content of people from the European Union which they have chosen to share publicly on social media platforms such as Instagram and Facebook.
• In October 2024, Quocia AI Pte Ltd, a Singapore-based AI start-up, launched its AI-powered social media management platform – Quocia. The platform is designed to simplify social media marketing for SMEs and professionals. Quocia automates social media strategy, content creation, scheduling, and posting, allowing businesses to focus on their growth and core operations.

Latest Announcements by Industry Leaders

• In June 2024, Salesforce EVP & GM, Unified Data Services & Einstein, Rahul Auradkar stated, “For the first time, business users can bring 90% of untapped data to their workflows, which has so far remained unstructured and unused in their enterprise, he further adds, “with the new innovation of Data Cloud, businesses can now grow cost-effectively by delivering transformative and integrated customer experiences across services, sales, marketing, AI, automation and analytics.”
• In April 2024, Irina Novoselsky, CEO of Hootsuite said, “We are building a social media performance engine, a feedback loop where AI takes consumer data and generates insights for actionable strategies and measurable impact. The combination of social listening's best insights technology, Talkwalker, brought into Hootsuite, will leapfrog the industry into the future of social marketing.”

Segments Covered in the Report

By Technology

• Deep Learning
• NLP

By Application

• Sales and Marketing
• Customer Experience Management

By Component

• Solution
• Service

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa