Blockchain AI Market Size, Share, Growth Analysis, By Component(Large Enterprises, and Small & Medium Enterprise), By Technology(Computer Vision, Machine Learning (ML), Natural Language Processing (NLP), and Others), By Deployment Mode(Cloud-based, and On-premises), By Application(Smart Contracts, Logistics and supply Chain Management, Payments and Settlements, Governance), By End-Use(BFSI, Energy & Utilities, Government, Healthcare), By Region - Industry Forecast 2024-2031

Blockchain AI Market Drivers

Increase Spending on Consumer Data Using Blockchain to Support Market Growth  

• Data economics solutions enable business functions to scale and help organizations gain insights from business data during the analytics phase. Organizations are using these solutions to make specific business decisions. Advances in artificial intelligence (AI), Internet of Things (IoT), and big data technologies can increase the adoption of data economy solutions in enterprises. 

Rising Convergence of Blockchain and AI Technology 

• One key driver of global blockchain AI market is the convergence of blockchain and artificial intelligence (AI) technology, offering synergistic benefits and innovative use. By integrating AI, businesses can develop decentralized AI models, enhance data privacy and security, and facilitate the sharing of trusted data among stakeholders. 

Restraints 

Scalability and Performance Challenges 

• Scalability and performance challenges severely restrict the global blockchain AI market, limiting its adoption and effectiveness in real-world applications. Blockchain networks, especially public blockchains like Bitcoin and Ethereum, often face transaction throughput, latency and network congestion. As AI applications generate and process large amounts of data in real time, scalability is a key factor in ensuring better performance and less user experience. The computational sophistication associated with the implementation of AI algorithms on blockchain networks. Complexity can increase further, leading to higher transaction costs and delayed implementation. 

Regulatory Compliance Uncertainty 

• Regulatory compliance uncertainty poses another important restriction to the global blockchain AI market, as businesses go through evolving regulatory frameworks and regulatory requirements across the world.  Data privacy, intellectual property rights and algorithmic cross raising complex legal and ethical questions associated with law enforcement agencies. Still struggle with defining clear guidelines and standards for responsible use of blockchain AI solutions, creating uncertainty and uncertainty for businesses and developers.