1,600 Billion Tomans: The Value of Iran's AI Market by 2024

According to SaedNews, from a scientific perspective, Iran has seen a significant decline in recent years compared to other countries in the region and the world. In 2023, Iran ranked second in the region after Saudi Arabia in the number and quality of scientific papers in the field of AI. If this trend continues, Iran is expected to lose its second place to Turkey within the next three years.

In terms of AI developers, Iran is second in the region after Turkey. The participation of Iranians in major AI projects has been increasing in recent years, and the presence of Iranian engineers in this field is on the rise. This is one of Iran's key advantages and opportunities in the global AI competition.

Regarding the application and use of AI in Iranian businesses, Iran is at least seven years behind the global average. Currently, about 17% of Iranian businesses use AI.

The main reasons for the lack of development and adoption of AI in Iranian businesses are the shortage of skilled labor and the absence of appropriate infrastructure. These two key factors have seriously hindered the expansion of AI in Iranian enterprises.

In terms of the number of active AI companies, Iran was ranked second in the region until 2016 but dropped to fourth place by 2023.

From a market perspective, the value of the AI sector in Iran is estimated to reach around 1,600 billion tomans by 2024, including data infrastructure and software. Since 2017, considering the annual inflation discount rate, this market has been shrinking slightly, posing a significant challenge.

In terms of investment, Iran has had the lowest investment among the countries in the region. Estimates suggest that approximately $10 million has been invested in Iran's AI sector, including data infrastructure and software, by both public and private sectors.

In terms of internal processing capacity and access to advanced processors in the AI field, Iran ranks fifth in the region.

The number of master's and Ph.D. graduates in computer engineering related to AI in Iran is about 3,500 annually. This figure has not changed significantly despite the extensive developments in AI and the wave of educational migration in recent years.

In terms of ethical standards and laws related to AI, Iran ranks fifth in the region, though the gap with other countries is not significant. The lack of data protection laws and the absence of an AI governance framework are two main challenges for Iran in this field.