Global Artificial Intelligence AI Agents In Public Service Market Growth to Hit $7.64 Bn by 2029 with 44.9% CAGR

The Business Research Company’s Artificial Intelligence AI Agents In Public Service Global Market Report 2025 - Market Size, Trends, And Global Forecast 2034

LONDON, GREATER LONDON, UNITED KINGDOM, May 26, 2025 /EINPresswire.com/ -- The Business Research Company’s Latest Report Explores Market Driver, Trends, Regional Insights - Market Sizing & Forecasts Through 2034

The artificial intelligence AI agents in public service market size has witnessed exponential growth in recent years, marked by its rise from $1.20 billion in 2024 to an anticipated $1.74 billion in 2025, a staggering compound annual growth rate CAGR of 45.1%. The historic period's growth is attributed to factors such as increasing digitalization of government services, the soaring demand for data-driven decision-making, burgeoning public sector budgets for technology adoption, a heightened focus on citizen-centric solutions, and the incessant need for efficiency in handling complex administrative processes.

But what will drive the future growth of the AI agents in public service market?

Forecast data reveal the market size is set to see more exponential growth in the next few years, soaring to a whopping $7.64 billion in 2029 at a compound annual growth rate CAGR of 44.9%. Such growth in the forecast period can be ascribed to rising adoption of AI in crisis management, an increased push for personalized citizen services, proliferation of smart city initiatives, potent cybersecurity measures for AI integration, and a growing demand for data-driven policy-making tools.

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What's Fueling The Growth Of The AI agents in public service market?

Driving the growth further ahead, the rising adoption of cloud computing is anticipated. Cloud computing has revolutionized the way computing services such as storage, processing power, databases, networking, software, and analytics are delivered. By resorting to the internet rather than local servers or personal computers, businesses gain the ability to adjust resources based on demand without heavy upfront investments, hence scalability. Cloud computing enables AI agents in public service to access scalable resources, process large datasets, and efficiently deliver real-time insights. This was seen when Eurostat, a Luxembourg-based government agency, reported an increase in the proportion of enterprises purchasing cloud computing services by 4.2 percentage points in 2023 compared to 2021.

Who are the key players operating in this AI agents in public service market?

Influential companies operating in the artificial intelligence AI agents in public service market include Alphabet Inc., Microsoft Corporation, Amazon Web Services Inc., Deloitte Touche Tohmatsu Limited, Intel Corporation, Accenture plc, International Business Machines Corporation, PricewaterhouseCoopers LLP, Oracle Corporation, KPMG International Limited, SAP SE, Salesforce Inc., Tata Consultancy Services Limited, NVIDIA Corporation, Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Adobe Inc., DXC Technology Company, and HCL Technologies Limited.

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Well, are there emerging trends to watch out for this AI agents in public service market?

Major companies are channeling their efforts towards technological advancements such as AI-powered agent systems that streamline processes, enhance decision-making, offer data-driven insights, and revamp citizen interactions. For instance, Genpact Ltd., showcased its bid for a future-forward effort by launching the ai-powered agentic solutions in 2025 to reimagine service delivery.

How is this AI agents in public service market structured?

The AI agents in public service market report sheds light on the market segmentation:
1 By Product Type: Ready To Deploy Agents, Build Your Own Agents,
2 By Agent System: Single Agent Systems, Multi Agent Systems,
3 By Application: Smart City Infrastructure, Traffic Management, Public Transportation Optimization, Law Enforcement, Education, Other Applications.

Subsegments include:
1 By Ready To Deploy Agents: Chatbots, Virtual Assistants, Task Automation Agents, Customer Support Agents, Decision Support Agents,
2 By Build Your Own Agents: Development Frameworks, Custom APIs, Open-Source Platforms, Cloud-Based Solutions, On-Premises Solutions.

What does the regional AI agents in public service market landscape look like?

North America boasted of the largest share in the AI agents in public service market in 2024. The market report provides a complete regional analysis, covering Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, and Africa.

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