The Global AI Market Was Forecast to Hit $190B by 2025 — The Reality Is Far Bigger

Originally published: June 8, 2024
Updated: June 10, 2025 — includes revised market forecasts and strategic commentary

Introduction

The global AI market was forecast in 2024 to reach $190.61 billion by 2025 — a figure that once felt bold and transformational. But with just months to go, that projection has been eclipsed by new data, new capital flows, and a wave of mainstream adoption across sectors.

“The $190 billion projection was the floor, not the ceiling. What we’re seeing now is AI reshaping every enterprise assumption — from product strategy to infrastructure to compliance.”

Matthew Rogers, CEO of Preux

What We Said Then (June 2024)

  • AI was rapidly embedding into healthcare, finance, property, and enterprise tools.
  • Startups were racing to integrate LLMs into their product roadmaps.
  • Enterprises were still cautious but shifting from PoCs to production.

All of that was accurate — but undercalibrated.

What’s Changed: 2025 Reality Check

Added June 2025

According to recent market data:

Big Tech is projected to spend $340 billion on AI in 2025 alone, raising real concerns about capital efficiency, ecosystem volatility, and market saturation.

Precedence Research now forecasts the global AI market to hit $638 billion in 2025, with some projections reaching as high as $757 billion.

The expected CAGR (compound annual growth rate) through 2032 is now 30.4%, with estimates pushing AI past $3.6 trillion by the early 2030s.

“We’re in an AI spending supercycle. The winners will be those who don’t just build fast — but build wisely.”

Meredith Whittaker, President of Signal

Sector Deep Dive: Where the Growth Is Coming From

Healthcare: AI is powering triage, diagnosis, clinical screening, and interview automation (see Wakura).

Infrastructure: Demand for GPUs, edge inference, and cloud orchestration is up across every vertical.

Enterprise SaaS: Agentic AI and “vibe coding” tools are shifting how products are scoped, staffed, and deployed.

Fintech: Compliance-first AI tooling is gaining traction due to tighter regulatory expectations (AEDT, GDPR AI Act, SOC 2).

Why This Matters for Founders and CTOs

  • AI use must be explainable, not just functional.
  • Spend must be defensible to boards and CFOs.
  • Integration must support privacy, scalability, and auditability — not just novelty.

“The conversation has shifted from ‘can we use AI?’ to ‘how do we scale it without burning capital or trust?’”
Matthew Rogers, CEO of Preux

Why This Matters for Founders and CTOs

The original $190 billion prediction was directionally right — but dramatically underestimated the scale of adoption.

The global AI market is no longer “emerging.” It’s transformational, crowded, and unforgiving. What you build, how you integrate it, and how it stands up to compliance scrutiny now define your value — not just your feature roadmap.

Preux works with founders and operators navigating this exact tension — from deep healthcare automation to enterprise-grade SaaS platforms. Want to future-proof what you’re building? Start by structuring it to survive the next wave, not just ride the current one.

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About Preux Software

Preux is a high-trust software development partner, known for embedding dependable, well-structured teams into ambitious organisations.

We specialise in delivering web platforms, SaaS products, and compliance-driven systems with particular strength in regulated sectors like healthcare and finance.

Our distributed teams — drawn from top-tier European talent — include developers, QA engineers, project managers, and UX designers. We work across modern stacks including Node.js, React, .NET, and Laravel, integrating AI and ML where it adds real, strategic value — not for show, but to solve meaningful problems.

Clients choose us not just for technical execution, but for the clarity, composure, and strategic insight we bring to complex builds. With a track record that includes Rolls-Royce, IBM, CryoFuture and Axxelist, Preux is trusted by companies who value quality over haste, and precision over hype.

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