Market Direction
Enterprise AI search is shifting from being merely a means to retrieve information to becoming tools that retrieve, analyze, synthesize and summarize information. They are increasingly delivered through a wide range of tailored and packaged applications as AI assistants and agents. The capabilities that are most critical to buyers include RAG, deep reasoning and agentic AI, federated AI assistants and agents, self-service SaaS and cloud-native deployment, in-application search experiences and hybrid search.
Retrieval-Augmented Generation
Retrieval-augmented generation (RAG) has become a foundational capability in enterprise AI search, enabling advanced AI assistants and agents to deliver accurate, contextually relevant outputs by grounding them in current, enterprise-specific data. Since the generative AI (GenAI) surge in late 2022, nearly all enterprise AI search vendors have adopted RAG patterns, recognizing its critical role in overcoming the inherent limitations of large language models (LLMs) for business applications.
However, the widespread adoption of RAG is complicated by diverse and opaque commercial terms from vendors. Pricing models vary based on user count, indexed volume, storage, infrastructure and token consumption. These factors, coupled with unpredictable inference costs and a lack of transparency in billing, make it challenging for enterprise buyers to assess total cost of ownership and ROI, leading to procurement hesitancy.
If organizations fail to fully understand and manage these cost factors, they risk budget overruns, underutilization of AI capabilities and reduced stakeholder confidence in AI investments. This potentially undermines the value of their AI initiatives and, by extension, AI’s enhanced ability to find and retrieve important information as part of their business processes, which ultimately reduces efficiency and effectiveness.
Deep Reasoning and Agentic AI
The enterprise AI search market is rapidly advancing toward applications that not only provide information but also make decisions and take actions. AI search platforms are now indispensable for enabling AI assistants and agents to synthesize information for both human and machine consumption, driving automation of complex business tasks.
The effectiveness of AI assistants and agents hinges on grounding LLMs in accurate, pertinent and trusted (APT) content. Achieving this requires enterprise AI search platforms to expose trusted sources to advanced natural language processing (NLP), machine learning (ML) and GenAI technologies capable of performing semantic search at scale.
As autonomous business becomes a strategic imperative, delivering consistent, high-quality insights is critical. The ability of enterprise AI search to provide context-rich, verified insights will directly impact the performance and trustworthiness of AI-driven automation and AI agents.
Federated AI Search
The enterprise AI search landscape is experiencing accelerated growth as organizations deploy more AI assistants and agents. Federated search has suffered from low penetration or only partial implementation, so the expansion of AI agents is intensifying a persistent challenge. Information is increasingly scattered across fragmented systems, disparate search applications, and siloed agents, making it difficult for users to efficiently retrieve and leverage relevant data.
Without federated search, employees navigating multiple interfaces and data sources often encounter conflicting or incomplete answers, resulting in frustration and inefficiency. Multiple user experiences that produce potentially different answers to the same question create confusion, which drives demand for solutions that can unify access and deliver coherent, actionable information.
As organizations pursue autonomous business models, the need for federated search architectures — capable of orchestrating information retrieval across diverse environments enabling RAG to power GenAI synthesis — is becoming critical.
Self-Service SaaS and Cloud-Native
Enterprises are increasingly favoring self-service software as a service (SaaS) models and cloud deployment, driven by the need for agility, elastic scalability, continuous updates, reduced operational burden and predictable cost structures. This trend is compelling vendors to prioritize self-service SaaS and multitenant, vendor-managed services, enabling rapid scaling and competitive differentiation in a cloud-first market.
However, organizations in regulated sectors such as government and defense face stringent data sovereignty and security requirements. These buyers often mandate single-tenant, vendor-managed services for on-premises deployments to retain control over data source locations and comply with local regulations. However SaaS solutions are less customizable than self-managed applications and flexibility depends on how configurable and extensible SaaS products are.
As cloud-first strategies become the industry norm, the market for on-premises solutions is projected to decline. Most enterprises lack the technical resources to acquire and maintain the compute infrastructure necessary for large language model (LLM) inferencing, restricting their ability to fully leverage advanced AI capabilities outside of cloud environments. This shift risks leaving regulated sectors with fewer viable options for innovation and modernization.
In-Application Search Experiences
Employees increasingly require seamless access to relevant information across the full spectrum of enterprise applications — including digital workplace suites, ERP, customer relationship management (CRM), IT service management (ITSM) and human capital management (HCM) platforms. The ability to retrieve actionable insights within the flow of work is now a critical driver of productivity, operational excellence and informed decision making.
This imperative is complicated by the proliferation of enterprise applications and the diverse ways employees interact with them. Users gravitate toward solutions that integrate essential information retrieval directly into their daily workflows, favoring platforms that offer superior operational experiences.
Enterprise application leaders face the challenge of delivering in-application search experiences that are both intuitive and robust, while also meeting complex, nuanced requirements typically addressed by enterprise search platforms. Failure to effectively embed search and AI assistant capabilities without disrupting established workflows can result in decreased productivity, poor user adoption and suboptimal business outcomes.
Semantic and Hybrid Search
Employees have rising expectations for the quality and relevance of search results and answers delivered by enterprise AI search tools. Poor user experiences are frequently caused by the inability of these tools to surface the most pertinent information required to provide insights.
The challenge is exacerbated when search engines operate over broad and diverse corpora, making it difficult to consistently identify the most relevant results. While search results refinement is possible, the sheer breadth and depth of enterprise data sources can overwhelm traditional search methods. To address this, enterprise AI search tools increasingly leverage hybrid search — combining traditional reverse indexing lexical search with advanced vectorization and cosine similarity techniques for semantic search.
This evolution, underpinned by advanced NLP, ML and LLM technologies, enables a deeper understanding of user intent and semantic relationships, resulting in more accurate and contextually relevant results — known as semantic search. However, organizations must be cautious of new market entrants who lack a proven track record in delivering superior relevance through hybrid search approaches, as ineffective solutions can erode user trust and hinder productivity.
Multimodal Search
Enterprise information assets now encompass images, video, audio, telemetry and other non-textual formats, fundamentally transforming the knowledge ecosystem. Users expect to find, analyze and repurpose information regardless of its form. While there is some value in the use of textual metadata describing assets in other modalities, true multimodal search is essential for meeting these expectations. True multimodality, enables queries in one modality — such as text, image or audio — and retrieving relevant results across others, thus supporting advanced knowledge discovery and innovation.
However, implementing multimodal search is complex. It requires multimodal LLMs and the alignment of diverse data types into a shared semantic space that preserves meaning across modalities. Effective retrieval demands domain-sensitive interpretation, which is both computationally intensive and prone to semantic errors. This technical fragility poses significant challenges for enterprise adoption.
As multimodal search matures, enterprises will benefit from unified access to documents, images, transcripts and video, greatly enhancing knowledge management and decision making. However, this evolution also introduces new risks — requiring security and compliance teams to address privacy and monitoring challenges across modalities. Without robust solutions, organizations risk data breaches and regulatory violations.
Market Analysis
Enterprise search, previously known as insight engines, has origins dating back to the late 1990’s. It is now undergoing a significant transformation, driven by buyer needs for AI assistants and the accelerating impact of artificial intelligence. Despite its longevity, the global market for enterprise search technology has remained relatively small, until the arrival of GenAI. During its evolution to enterprise AI search, the market is now experiencing a period of higher growth characterised by increased interest from buyers, rapid technology change and new market entrants.
Competition
Enterprise AI search platforms are no longer just stand-alone tools; they are key technologies for developing scalable AI assistants and AI agents using RAG. This places them in direct competition with embedded AI assistants within major enterprise application suites, which, while leveraging search, are often tightly coupled to their vendors’ ecosystems.
The market is seeing an increased number and variety of enterprise AI search tools, diversifying beyond traditional search platforms to include in-application and federated experiences.
Microsoft launched Microsoft 365 Copilot in 2023, which leveraged Microsoft Search and captured early attention from buyers. Google re-entered the market in 2023 with Vertex AI Search, their first foray into the market since end-of-life for the Google Search Appliance. Amazon services have expanded and matured the Kendra, OpenSearch and Amazon CloudSearch offerings. Glean is also a notable new entrant to the market growing rapidly from its launch in 2022 to deliver $100m in revenue in 2024.
2024 also saw the launch of several in-application AI search experiences including Atlassian Rovo, Salesforce Agentforce and SAP Joule.
Organizations are currently piloting GenAI solutions and trying new tools and capabilities to see which deliver the most value. In-application experiences are often a first step, but may fail to deliver the expected value. According to Gartner’s 2025 Microsoft 365 and Microsoft 365 Copilot survey, only 11% of survey respondents said they were planning or moving to a large-scale deployment (more than 20% of office workers) in 2025; a further 6% had already completed a global rollout.2 Such experiments lead to investigations into more domain specific in-application solutions like Salesforce Agentforce or SAP Joule.
For complex needs and diverse source systems, enterprise AI search platforms offer the best solution, but they also offer prepackaged integrations and experiences for key enterprise applications. This approach supports a broad spectrum of operational use cases.
Search Solution Approaches
Enterprise AI search and assistants capabilities can be realized through different solution approaches, namely a search platform, in-application search and federated search applications (see Figure 2).
Figure 2: Three Solution Approaches to Enterprise AI Search

Search as a platform: Connects multiple content and data sources, enriching a single index and providing a search experience configured to the needs of specific domains and operational business teams. It is the continuation of traditional enterprise search tools also referred to in previous Gartner research as insight engines. Search platforms may require more effort and investment to tailor to specific business needs, but may also deliver greater value. Gartner estimates it to be the largest subsegment of the market.
In-application search: Brings search experiences into application suites where work is done. It indexes information in the primary application as well as secondary applications connected to the primary application’s graph. In-application search is a high growth sub segment, although the incremental value they drive for vendors in the markets they serve is difficult to quantify.
Federated search: Connects multiple content and data sources, brokering queries and unifying ranking results from the separate indexes, instead of indexing centrally. Federated search is commonly focused on general-purpose digital workplace use cases and connections to popular collaborative applications and digital workplace suites. Federated search tools are seeing renewed interest from buyers as standards like model context protocol (MCP) make federation easier.
Use Cases
Figure 3: Use Cases for Enterprise AI Search

Customer experience (CX): These use cases enhance how external stakeholders, including prospects and customers, access and engage with information.
Web AI search: Tailored for prospects and customers, drawing from public website content.
Customer service portals AI search: Providing self-service knowledge bases for customer inquiries.
Employee experience (EX): These use cases focus on general-purpose knowledge access as part of digital workplace suites and access to employee-facing operational functions like HR and end-user IT.
Digital workplace AI search: Offering centralized search across digital workplace tools, intranets and corporate communications for employees.
IT service hub AI search: Grounded in IT knowledge bases, documentation and troubleshooting guides for employee support (i.e., Aisera, ServiceNow [Moveworks]).
Employee services hub AI search: Delivering broad services for employees, including HR-specific search and AI assistants.
Intranet AI search: Delivering search experience across a wide range of corporate knowledge and communications (i.e., LumApps, Simpplr and Unily).
Operational experience (OX): These use cases are geared toward optimizing back-office processes and decision making for business operations.
Operational AI search: This gathers information from various sources and provides tailored search experiences
ITSM AI search: Search and AI assistant experiences designed to aid IT teams find answers in ITSM knowledge bases.
CRM AI search: Augmenting customer relationship management with embedded search and AI capabilities.
Finance/ERP AI search: AI search experiences integrated within ERP systems to support financial operations.
R&D deep research and AI search: Enabling researchers to synthesize insights from a wide array of internal and external knowledge bases.
Analytics and automation: Extracting data from indexed content for advanced analysis and reporting, either within the search platform itself or by syndicating data to other applications to drive automation initiatives. This positions enterprise AI search as a fundamental component of broader hyperautomation strategies.