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Artificial Intelligence (AI) in Games Market to Grow by USD 27.47 Billion by 2029, Rising Adoption of AR and VR Games Boosts Market, Report on AI Impact on Market Trends – Technavio

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NEW YORK, Feb. 5, 2025 /PRNewswire/ — Report on how AI is redefining market landscape – The global Artificial intelligence (AI) in games market size is estimated to grow by USD 27.47 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of  42.3%  during the forecast period. Growing adoption of AR and VR  games is driving market growth, with a trend towards increasing emergence of cloud gaming. However, network latency in between games  poses a challenge. Key market players include Capcom Co. Ltd., Charisma Entertainment Ltd., COGNOSPHERE PTE. LTD., Electronic Arts Inc., Gameloft SE, Google LLC, Konami Group Corp., Latitude, Microsoft Corp., NetEase Inc., Nintendo Co., Ltd., NVIDIA Corp., PrometheanAI Inc., Side Effects Software Inc., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Theai Inc., Ubisoft Entertainment SA, and Unity Technologies Inc..

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Artificial Intelligence (AI) In Games Market Scope

Report Coverage

Details

Base year

2024

Historic period

2019 – 2023

Forecast period

2025-2029

Growth momentum & CAGR

Accelerate at a CAGR of 42.3%

Market growth 2025-2029

USD 27474 million

Market structure

Fragmented

YoY growth 2022-2023 (%)

32.9

Regional analysis

North America, APAC, Europe, South America, and Middle East and Africa

Performing market contribution

North America at 40%

Key countries

US, China, Canada, Japan, South Korea, UK, Germany, Brazil, France, and Italy

Key companies profiled

Capcom Co. Ltd., Charisma Entertainment Ltd., COGNOSPHERE PTE. LTD., Electronic Arts Inc., Gameloft SE, Google LLC, Konami Group Corp., Latitude, Microsoft Corp., NetEase Inc., Nintendo Co., Ltd., NVIDIA Corp., PrometheanAI Inc., Side Effects Software Inc., Sony Group Corp., Take Two Interactive Software Inc., Tencent Holdings Ltd., Theai Inc., Ubisoft Entertainment SA, and Unity Technologies Inc.

Market Driver

Artificial Intelligence (AI) is revolutionizing the games market with trends like AI-generated content, Virtual Reality (VR), and Augmented Reality (AR). Games are now using AI algorithms to create 3D representations, enhance player experience on platforms like Microsoft HoloLens 2, and improve sensor technology. AI technologies, including machine learning and neural networks, power advanced features like ray tracing and realistic physics simulations in games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2. Network latency is a challenge in multiplayer gaming, but AI-enabled platforms and deep learning ML models are helping to analyze data for prediction and improve matchmaking. GPUs and CPUs are essential for processing power, while real-time AI processing is a key factor in mobile games. Expertise in AI is in demand for developing AI-driven animation techniques and anti-cheat systems. Market growth factors include 5G network, cloud gaming, edge computing, and smart gaming consoles. AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems are leading the way in AI-driven gaming innovations. 

Cloud gaming, which allows access to remote server-based games through Internet-connected devices, is gaining popularity due to the rise of social media and mobile gaming. This technology eliminates the need for new hardware or complicated setups, such as game discs, installations, or patches. Grid computing powers the streaming of game content to users via wired or wireless broadband connections. Cloud gaming’s cost-effective pricing structure appeals to non-core gamers, expanding its reach beyond traditional console gaming. The convenience and ease of use make cloud gaming an attractive option for gamers. 

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Market Challenges

The AI in Games market is experiencing significant growth, with advancements in AI-generated content, virtual reality (VR), and augmented reality (AR). Microsoft HoloLens 2 and other AI technologies, such as machine learning and neural networks, are revolutionizing gaming. However, challenges remain, including network latency, processing power, and real-time AI processing for multiplayer gaming and matchmaking. AI-enabled platforms like Euphoria and Realistic physics simulations are improving player behavior and environmental interaction. Market growth factors include cloud-based services, smart gaming consoles, and expertise in AI. Companies like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 are utilizing AI for image upscaling, prediction, and ML models. Future trends include deep learning, data analysis, and AI-driven animation techniques. The market is expected to grow, driven by 5G network, cloud gaming, edge computing, and AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems.The global AI market in games faces a significant challenge due to network latency. This delay between a player’s action and the game server’s response can negatively impact gameplay experiences, particularly in online multiplayer games. Latency is influenced by factors such as internet connection quality, player-server distance, network infrastructure, number of users, and server load. Reducing network latency is crucial for providing optimal gaming experiences and ensuring player satisfaction. Companies in this market must invest in improving network infrastructure and optimizing server performance to minimize latency and enhance the overall gaming experience.

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Segment Overview 

This artificial intelligence (ai) in games market report extensively covers market segmentation by  

TypeAI Enabled PlatformsAI Enabled GamesTechnologyMachine LearningNatural Language ProcessingComputer VisionRoboticsGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And AfricaGameActionAdventureCasualRacingSimulationSportsStrategyAI TypeMachine LearningDeep LearningNatural Language ProcessingComputer Vision

1.1 AI enabled platforms-  Artificial Intelligence (AI) platforms are essential collections of tools that facilitate the creation, testing, implementation, and maintenance of deep learning and Machine Learning (ML) models in the gaming industry. AI technology enables machines to execute tasks beyond human capabilities, such as data analysis, prediction, and action-making, more efficiently and accurately. Developers utilize AI platforms to create advanced games, build environments, characters, and plots more rapidly. Additionally, AI’s ability to analyze player behavior and data offers valuable insights into player preferences, leading to customized and engaging experiences. Leading companies like Microsoft and Google are at the forefront of this change, offering AI-driven platforms and tools that are revolutionizing game production. Furthermore, AI is enhancing game realism through AI-powered graphics and ray tracing, resulting in lifelike scenes. Real-time interactions between human gamers and AI-powered virtual characters are also made possible by these platforms. The increasing adoption of AI platforms in the gaming industry will drive the growth of this segment and market during the forecast period.

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Research Analysis

The AI in Games market is revolutionizing the gaming industry by integrating advanced AI algorithms, machine learning, and neural networks to generate and dynamic gaming experiences. AI-generated content includes 3D representations, virtual reality (VR), and augmented reality (AR), enhancing the realism and interaction in games. Microsoft HoloLens 2, with its AI technologies and sensors, leads the way in AR gaming. AI enables prediction and data analysis, reducing network latency and improving gameplay. GPUs and CPUs power AI-enabled platforms, enabling real-time image upscaling and ray tracing for enhanced graphics. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 utilize AI middleware systems like Euphoria to create lifelike characters and environments. Deep learning ML models are used for character behavior and decision-making, adding depth to the gaming experience. AI is transforming 3D games into intelligent, interactive, and experiences.

Market Research Overview

The Artificial Intelligence (AI) in Games market is experiencing rapid growth as developers integrate advanced AI technologies to create more and interactive gaming experiences. AI-generated content, such as 3D representations and realistic physics simulations, is revolutionizing the industry. Virtual reality (VR) and augmented reality (AR) games are utilizing AI algorithms to enhance user experience, with devices like Microsoft HoloLens 2 leading the way. Sensors and AI technologies like machine learning and neural networks are powering these advancements. Games like Cyberpunk 2077, Battlefield V, and Red Dead Redemption 2 are using AI to improve player behavior and environmental interaction. Network latency is being addressed through AI-enabled platforms and real-time AI processing. Deep learning and ML models are being used for data analysis and prediction, while GPUs and CPUs provide the necessary processing power. Realistic physics simulations, AI-driven animation techniques, and expertises in AI are key market growth factors. Cloud gaming, 5G networks, and edge computing are also driving the market forward. AI Dungeon, Voyage platform, Pixel This, Things, Loom, and Mediaeval Problems are some of the innovative companies leading the charge in this exciting field.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

TypeAI Enabled PlatformsAI Enabled GamesTechnologyMachine LearningNatural Language ProcessingComputer VisionRoboticsGeographyNorth AmericaAPACEuropeSouth AmericaMiddle East And AfricaGameActionAdventureCasualRacingSimulationSportsStrategyAI TypeMachine LearningDeep LearningNatural Language ProcessingComputer Vision

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/

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11:11 Systems Announces Strategic Partnership with Cato Networks to Deliver SASE Solution for Distributed Enterprises

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New Managed Secure Access Service Edge (SASE) solution combines SD-WAN, cloud-native networking and security capabilities with 11:11’s connectivity, cyber resilience and cloud expertise

SYDNEY, July 22, 2026 /PRNewswire/ — 11:11 Systems, a leading managed infrastructure solutions provider, today announced the global availability of its 11:11 Managed Secure Access Service Edge (SASE) solution and a new strategic partnership with Cato Networks.

11:11 Managed SASE is a fully managed secure connectivity solution leveraging Cato Networks AI-native network security platform. This solution brings together intelligent SD-WAN, cloud-delivered security and global connectivity into a single offering. It enables organisations to simplify and secure access across branch offices, data centres, users and cloud environments, reducing complexity without sacrificing performance or control.

Built on the Cato Networks cloud-native SASE platform, 11:11 Managed SASE combines zero trust network access (ZTNA), firewall as a service (FWaaS), secure web gateway (SWG), cloud access security broker (CASB), advanced threat protection and centralised visibility into a unified managed experience. 11:11 also delivers 24x7x365 monitoring and support, incident management integration and operational accountability to help customers limit vendor sprawl, increase agility and free internal teams to focus on higher-value priorities.

The offering is backed by 11:11’s broader networking, cloud and cyber resilience capabilities. Through its global backbone, carrier-agnostic connectivity options and integrated portfolio spanning cloud, backup, disaster recovery and security services, 11:11 gives customers a practical path to modernise network and security architecture while strengthening resilience across the business.

“Enterprises are under pressure to support users, applications and locations that are more distributed than ever, while limiting complexity and improving security,” said Justin Giardina, CTO, 11:11 Systems. “Our Managed SASE solution provides customers with a unified approach to modernising networking and security, along with the visibility, support and flexibility they need to thrive in a rapidly changing environment.”

According to Karl Soderlund, global channel chief, Cato Networks, “As enterprises move beyond fragmented legacy networking and security stacks, they need a simpler way to gain visibility, context and control across hybrid work environments and reduce the operational burden on IT. Through our partnership, we can address these challenges head on and deliver end-to-end visibility and protection in a single service built for the reality of modern work.”

The joint offering is well suited for distributed enterprises, multi-site organisations, hybrid workforce initiatives, SD-WAN refreshes, security modernisation efforts and businesses with limited IT resources. 11:11 meets customers where they are by supporting existing environments, simplifying multi-vendor operations and serving as a single provider accountable for network, security, cloud and data integration.

This partnership expands 11:11’s Network as a Service portfolio and follows Forrester’s inclusion of 11:11 Systems in its report, “The Secure Access Service Edge Services Landscape, Q1 2026.”

About 11:11 Systems

11:11 Systems is a managed infrastructure solutions provider that empowers customers to modernise, protect and manage mission-critical applications and data, leveraging 11:11’s resilient cloud platform. Learn more at www.1111Systems.com and follow 11:11 on LinkedIn.

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Crowell & Moring Expands Financial Services Group with Former UBS Bank USA General Counsel Cristina Diaz

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NEW YORK, July 21, 2026 /PRNewswire/ — Crowell & Moring has added Cristina Diaz, former executive director and general counsel of UBS Bank USA, and most recently head of legal for UBS’s U.S. Remediation Management Office, to the firm’s Financial Services Group as senior counsel in New York. Diaz brings more than two decades of in-house counsel and law firm experience in bank regulation, compliance, and risk management.

At Crowell, Diaz will counsel banks, fintechs, and digital assets companies on a broad range of bank regulatory matters, including charters and licensing, permissible activities, capital requirements, regulatory enforcement, M&A, and corporate governance. She will also counsel clients navigating the intersection of traditional banking and emerging financial services, including digital assets companies seeking to acquire or establish national banks, and banks exploring partnerships with fintechs and digital assets firms.

At UBS, Diaz advised on the firm’s most pressing regulatory matters, including most recently UBS Bank USA’s charter conversion from a Utah industrial bank to an OCC national bank and key compliance remediations. This work gave Diaz extensive experience navigating relationships with state and federal financial regulators. Earlier in her career, Diaz spent eight years at Davis Polk & Wardwell advising U.S. and foreign banks on bank regulatory matters, M&A, and capital markets transactions.

“Cristina is a highly experienced, solution-oriented attorney who brings deep knowledge in the bank regulatory space. She will be an enormous asset to the firm’s growing regulatory and transactional offerings to banks, digital assets businesses, and fintechs,” said Carlton Greene, Co-Chair of Crowell’s Financial Services Group.

“I am delighted to join Crowell & Moring and integrate my bank regulatory experience with the firm’s nationally-recognized digital assets practice. As traditional banking and emerging financial technologies continue to evolve, clients need actionable and sophisticated legal counsel. Crowell offers the collaborative platform to help institutions successfully execute their growth and compliance strategies,” said Diaz.

Diaz received her J.D. from New York University School of Law, where she was a member of the New York University Law Review, and received her B.A., summa cum laude, from New York University. She is fluent in Spanish.

About Crowell & Moring LLP
Crowell & Moring is an international law firm with operations in the United States, Europe, and MENA. Drawing on significant government, business, industry, and legal experience, the firm helps clients capitalize on opportunities and provides creative solutions to complex regulatory and policy, litigation, transactional, and intellectual property issues. The firm is consistently recognized for its commitment to pro bono service, as well as its comprehensive programs and initiatives to advance the professional and personal development of all members of the Crowell community.

Media Contact:
Email: prteam@crowell.com

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Quantinuum and SoftBank Corp. Publish Joint White Paper on Scaling Practical Quantum Computing Use Cases Toward the Fault-Tolerant Era

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The companies have published a joint white paper mapping commercially relevant quantum computing use cases in quantum chemistry and graph analytics to Quantinuum’s hardware roadmap.The paper provides a framework for assessing how advances in quantum hardware and algorithms, could affect when practical industrial applications become feasible.SoftBank Corp. and Quantinuum will use the roadmap to inform their exploration of future quantum AI data center services and related business models.

TOKYO and BROOMFIELD, Colo., July 22, 2026 /PRNewswire/ — Quantinuum (NASDAQ: QNT) and SoftBank Corp. (“SoftBank”) today announced the publication of “Quantum Computing Frontiers,” a joint white paper that maps two commercially-relevant quantum computing application areas against Quantinuum’s hardware roadmap. The analysis examines how advances in quantum hardware and algorithms could affect when these applications become practical for industrial use.

The paper focuses on two representative application domains that SoftBank is actively using Quantinuum’s systems to research: quantum chemistry for new materials discovery and energy research, and topological data analysis for large-scale graph analytics, including for telecommunications fraud detection. The authors anchor their assessment of the scalability of these two application areas against Quantinuum’s published hardware roadmap, examining how projected advances in hardware capabilities and algorithms may enable the commercial readiness of future industrial applications.

Building on this use-case roadmap, the paper also examines how quantum computing, AI, and high-performance computing could be integrated into future computing infrastructure. It considers how progress across successive hardware generations could inform future quantum AI data center services and related business models, a key focus of the Quantinuum and SoftBank partnership announced last year.

“The key takeaway of this study is that organizations do not need to wait for large-scale, fault-tolerant systems to explore where quantum computing can begin creating value,” said Duncan Jones, General Manager, Applications Group at Quantinuum. “By using today’s systems to develop, benchmark and refine applications in areas such as quantum chemistry and graph analytics, enterprises can build the technical and operational readiness needed for the next era of quantum-enabled computing.”

“The question is no longer whether quantum computing may deliver value, but rather which problem classes become executable at which stage of hardware maturity,” said Ryuji Wakikawa, Senior Vice President & CTO at SoftBank Corp. “However, we believe progress in hardware must be complemented by equally strong developments in quantum algorithms and the integration of quantum systems with AI and high-performance computing.”

The white paper discusses illustrative scenarios describing how representative applications, technology maturity, and potential market opportunities may evolve over time under stated assumptions. The analysis provided in the paper is intended to provide a conceptual framework for understanding potential market evolution and does not represent financial guidance or forecasts. These analyses are intended to support discussion of future technology development and should not be interpreted as commitments regarding commercialization, infrastructure investment, products, services, or financial performance.

The full white paper is available to download on the SoftBank and Quantinuum websites.

About SoftBank Corp.

Guided by the SoftBank Group’s corporate philosophy, “Information Revolution – Happiness for everyone,” SoftBank Corp. (TOKYO: 9434) operates telecommunications and IT businesses in Japan and globally. Building on its strong business foundation, SoftBank Corp. is aiming to activate the potential of AI across its businesses and drive implementation in line with its “Activate AI for Society” growth strategy. While further growing its telecom business, SoftBank is expanding its AI computing infrastructure and AI and Cloud service businesses with the aim of becoming a provider of Next-generation Social Infrastructure. To learn more, please visit https://www.softbank.jp/en/corp/

About Quantinuum

Quantinuum (NASDAQ: QNT) is a leading quantum computing company offering a full-stack platform designed to make quantum computing deployable in real-world environments. The company has commercially deployed multiple generations of quantum systems built on the well-established QCCD architecture, which it has implemented with novel designs and capabilities to achieve the industry’s highest accuracy levels based on average two-qubit gate fidelity.[1] Quantinuum has active engagements with market leaders across pharmaceuticals, material science, financial services, and government and industrial markets. The company has a global workforce of approximately 700 employees, including top scientists and researchers. Over 70% of its technology team holds PhDs or Master’s degrees. Quantinuum’s headquarters is in Broomfield, Colorado, with additional facilities across the United States, United Kingdom, Germany, Japan, Qatar, and Singapore.

For more information, please visit www.quantinuum.com.

Cautionary Statement Concerning Forward-Looking Statements

This press release contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts. The words “anticipate,” “assume,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “future,” “will,” “seek,” “foreseeable,” the negative version of these words, or similar terms and phrases are intended to identify forward-looking statements. Such statements are based on certain assumptions and assessments made by our management in light of their experience and their perception of historical trends, current economic and industry conditions, expected future developments and other factors they believe to be appropriate. The forward-looking statements included in this release are also subject to a number of material risks and uncertainties, including but not limited to economic, competitive, governmental, and technological factors affecting our operations, markets, products, services and prices. New factors emerge from time to time, and it is not possible for Quantinuum to predict all such factors. Any forward-looking statement speaks only as of the date on which it is made, and, except as required by law, Quantinuum does not undertake any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

 

[1] As of December 31, 2025.

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