Artificial intelligence market in Ukraine and worldwide: analysis of the current situation and development prospects

Strelchenko Inna
Doctor of Economics, Professor of the International Marketing Department, Alfred Nobel University, Dnipro, Ukraine, E-mail:strelchenko.i@duan.edu.ua, ORCID ID: https://orcid.org/0000-0001-5179-4304

Ovcharenko Olga
PhD in Economics, Associate of the International Marketing Department, Alfred Nobel University, Dnipro, Ukraine, E-mail:ovcharenko.i@duan.edu.ua, ORCID ID: https://orcid.org/0000-0003-2330-3234

Strelchenko Anatoly
PhD student, Department of Enterprises, Production Organizations and Theoretical and Applied Economics, ESI USUChT Ukrainian State University of Science and Technology, Dnipro, Ukraine, E-mail:anatolijstrelchenko@gmail.com, ORCID ID: https://orcid.org/0009-0001-7710-7549

Cite this article:

Strelchenko I., Ovcharenko O., Strelchenko A. (2024) Artificial intelligence market in Ukraine and worldwide: analysis of the current situation and development prospects. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Rynok shtuchnoho intelektu v Ukraini ta sviti: analiz potochnoi sytuatsii i perspektyvy rozvytku; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 7-8 (320-321), pp. 7-16.

Abstract

The purpose of this article is to analyze the dynamics and prospects for the development of the artificial intelligence (AI) market both in Ukraine and at the global level. In line with this objective, several key aspects were examined, including the current state of the AI-market, major trends, innovations, challenges and opportunities for development. To achieve the set objectives, a comprehensive approach was used, which includes the analysis of secondary data (scientific publications, reports, analytical studies), surveys of experts in the field of AI, as well as econometric analysis of market data. The conducted analysis showed extremely positive expectations of the leading economies from the introduction of IS technologies in various spheres of life and the economy as a whole. A comparative analysis of indicators of the average annual growth rates of individual sectors of the digital economy confirmed that the AI-market is estimated to demonstrate the highest positive dynamics until 2030. In particular, compared to the software market, the AI-market will demonstrate positive dynamics with an almost 7% higher CAGR value and a 3.5 times higher average annual growth rate than the consulting and training market over the same period. In the context of global challenges, a comparative analysis of the AI-market in Ukraine and individual world economies was conducted. Against the background of high military and political risks, the absolute insufficiency of the volume of venture investments for sustainable market growth has been determined. The opportunities for the development of startups in the field of defense tech that use AI solutions are indicated. The study provides a holistic view of the AI-market, including its current state, key challenges, and growth prospects. This will allow business leaders, scientists and politicians to better understand the dynamics of AI development and make informed decisions to stimulate innovation and effective implementation of AI technologies in various areas of the economy.

Keywords

artificial intelligence market, digital economy, startup, investment, analysis, forecast.

JEL classification: С530; O310; O330; DOI: https://doi.org/10.32680/2409-9260-2024-7-8-320-321-7-16

UD classification: 339.1; 311.3

References

1. Shapiro, S. C. (2000). Artificial Intelligence. In A. Ralston, E. D. Reilly and D. Hemmendinger, Eds. Encyclopedia of Computer Science, Fourth Edition, Grove's Dictionaries Inc., NY, 89-93. Retrieved from https://cse.buffalo.edu/~shapiro/Papers/ai-eofcs.pdf. (accessed 30 July 2024).
2. Goertzel, B. (2014). Artificial General Intelligence: Concept, State of the Art, and Future Prospects. Journal of Artificial General Intelligence. Retrieved from https://sciendo.com/ article/10.2478/jagi-2014-0001. (accessed 30 July 2024).
3. Pei Wang (2019). On Defining Artificial Intelligence. Journal of Artificial General Intelligence, 10(2), 1-37.https://doi.org/10.2478/jagi-2019-0002. (accessed 30 July 2024).
4. Waltersmann, L, Kiemel, S, Stuhlsatz, J, Sauer, A, & Miehe, R. (2021). Artificial Intelligence Applications for Increasing Resource Efficiency in Manufacturing Companies-A Comprehensive Review. Sustainability. 13(12):6689. https://doi.org/10.3390/su13126689. (accessed 30 July 2024).
5. Weigang, L., Enamoto, L.M., Li, D.L. et al. (2022). New directions for artificial intelligence: human, machine, biological, and quantum intelligence. Front Inform Technol Electron Eng. 23, 984–990. https://doi.org/ 10.1631/FITEE.2100227. (accessed 30 July 2024).
6. Sennott, Samuel & Akagi, Linda & Lee, Mary & Rhodes, Anthony. (2019). AAC and Artificial Intelligence (AI). Topics in Language Disorders. 39. 389-403. https://doi.org/10.1097/ TLD.0000000000000197. (accessed 30 July 2024).
7. Subhamathi, V. (2021). Artificial Intelligence (AI) contributions towards business innovations International Journal of Engineering Applied Sciences and Technology, 6, 289-292. https://doi.org/10.33564/ijeast.2021.v06i06.042. (accessed 30 July 2024).
8. Chiappini, D. (2024). The Legal Definition of Artificial Intelligence: A Comparative Perspective. European Journal of Comparative Law and Governance. 1-28. https://doi. org/10.1163/22134514-bja10071. (accessed 30 July 2024).
9. Popovič, Adrián & Sábo, Jozef. (2022). Taxation of Robots and AI – Problem of Definition. Financial Law Review. Issue 25 (1). 1-16. https://doi.org/10.4467/22996834FLR.22.001.15651. (accessed 30 July 2024).
10. Soeffner, Jan. (2023). Meaning–thinking–AI. AI & SOCIETY. 1-8. https://doi.org/10.1007/ s00146-023-01709-x. (accessed 30 July 2024).
11. Precedence Research (2023, October). Artificial Intelligence (AI) Market Size, Share, and Trends 2024 to 2034. Retrieved from https://www.precedenceresearch.com/artificial-intelligencemarket. (accessed 30 July 2024).
12. Business Researchi Isights (2024, April). Education Consulting Service Market Size, Share, Growth, and Industry Analysis, By Type (Higher Education Consulting, K-12 Education Consulting), By Application (Public Educational Institutions, Private Educational Institution, Non- Profit Educational Institution) and Regional Insights and Forecast to 2032. Retrieved from https://www.businessresearchinsights.com/market-reports/education-consulting-service-market-113001. (accessed 30 July 2024).
13. Fortune Businessins Inghts (2024, July). FinTech Market Size, Share & Industry Analysis, By Technology (AI, Blockchain, RPA, and Others), By Application (Fraud Monitoring, KYC Verification, and Compliance & Regulatory Support), By End Use (Banks, Financial Institutions, Insurance Companies, and Others), and Regional Forecast, 2024 – 2032. Retrieved from https:// www.fortunebusinessinsights.com/fintech-market-108641. (accessed 30 July 2024).
14. Research and Markets (2024. Feb.). Artificial Intelligence Market, Size, Global Forecast 2024-2030, Industry Trends, Share, Growth, Insight, Impact of Inflation, Company Analysis. Retrieved from https://www.researchandmarkets.com/report/artificial-intelligence#cat-pos-1. (accessed 30 July 2024).
15. AI ecosystem of Ukraine: talents, companies, education. (2024, June). Retrieved from https://aihouse.org.ua/wp-content/uploads/2024/01/AI-Ecosystem-of-Ukraine-by-AI-HOUSE-x- Roosh-UA.pdf. [In Ukrainian]. (accessed 30 July 2024).
16. Durdynets, M., Poda, T., Kostetska, L., Svoboda, I. & Strelchenko I. (2024). Changes in the Political Discourse of Eastern European Countries in the Context of the Migration Crisis and Combating Human Rights Violations. Pakistan Journal of Criminology. 16, 03, July—September. 1379-1394. Retrieved from https://doi.org/10.62271/pjc.16.3.1379.1394. (accessed 30 July 2024).
17. Statista (2024, Mar.). Artificial Intelligence – Ukraine. https://www.statista.com/outlook/ tmo/artificial-intelligence/ukraine.
18. Kennedy, A. (2023). Ranked: Artificial Intelligence Startups, by Country. Visual Capitalist. Sep. 13. Retrieved from https://www.visualcapitalist.com/sp/global-ai-investment/. (accessed 30 July 2024).
19. OECD. (2024). Venture capital investments in AI in USD millions by country from 2012 onwards [Data set]. Retrieved July 29, 2024, Retrieved from https://oecd.ai/en/ data?selectedArea=investments-in-ai-and-data&selectedVisualization=vc-investments-in-ai-bycountry. (accessed 30 July 2024).
20. PwC (2024). Global Artificial Intelligence Study: Exploiting the AI Revolution. Retrieved from https://www.pwc.com/gx/en/issues/data-and-analytics/publications/artificial-intelligencestudy. html. (accessed 30 July 2024).