Resources

Artificial Intelligence-Derived Business Value and Market to Boom by 2022

Digital disruptors are transforming business models and digital transformation is no more a buzzword. Technologies such as artificial intelligence and machine learning are leaving no industry untouched and are expected to soar in acceptability, irrespective of geography. The twin technologies are expected to gain huge traction in 2018. Their usability and scope are billed to increase manifold in the coming years. This is according to the reports coming in recently.

According to Gartner, global business value derived from artificial intelligence (AI) is projected to total $1.2 trillion in 2018, an increase of 70 percent from 2017. AI-derived business value is forecast to reach $3.9 trillion in 2022. This AI-derived business value forecast assesses the total business value of AI across enterprise vertical sectors. Gartner says that there are three different sources of AI business value: customer experience, new revenue, and cost reduction, leading to a boom in the sector.

AI promises to be the most disruptive class of technologies during the next 10 years due to advances in computational power, volume, velocity and variety of data, as well as advances in deep neural networks (DNNs),” said John-David Lovelock, research vice president at Gartner. “One of the biggest aggregate sources for AI-enhanced products and services acquired by enterprises between 2017 and 2022 will be niche solutions that address one need very well. Business executives will drive investment in these products, sourced from thousands of narrowly focused, specialist suppliers with specific AI-enhanced applications.”

According to Gartner, AI business value growth shows the typical S-shaped curve pattern associated with an emerging technology. In 2018, the growth rate is estimated to be 70 percent.

“In the early years of AI, customer experience (CX) is the primary source of derived business value, as organizations see value in using AI techniques to improve every customer interaction, with the goal of increasing customer growth and retention. CX is followed closely by cost reduction, as organizations look for ways to use AI to increase process efficiency to improve decision making and automate more tasks,” said Lovelock. “However, in 2021, new revenue will become the dominant source, as companies uncover business value in using AI to increase sales of existing products and services, as well as to discover opportunities for new products and services. Thus, in the long run, the business value of AI will be about new revenue possibilities.”

Breaking out the global business value derived by AI type, decision support/augmentation (such as DNNs) will represent 36 percent of the global AI-derived business value in 2018. By 2022, decision support/augmentation will have surpassed all other types of AI initiatives to account for 44 percent of global AI-derived business value, says Gartner.

Similarly, another research company has also predicted a boom. The Artificial Intelligence market is expected to reach USD 190.61 Billion by 2025 from USD 21.46 Billion in 2018, predicts a ResearchandMarkets.com report. The market growth is attributed to factors such as growing Big Data, the increasing adoption of cloud-based applications and services, and increasing demand for intelligent virtual assistants. However, there are a limited number of experts in the AI domain and that seems and could be a restraining factor for the market growth.

Software is expected to hold the largest share of the artificial intelligence market. Continuous developments have been witnessed in the AI software and related software development kits. Also, artificial intelligence software is used in various applications, such as virtual assistants, marketing, search advertising, identity access management, intruder detection, and cybersecurity. Top tech companies such as Apple and Google are incorporating Machine Learning as well as Artificial Intelligence into their existing products or new ones to make them smarter. The technologies are finding particular use in areas such as cloud computing and robotics.

(Image Courtesy: www.pixabay.com)

Leave a Comment

Your email address will not be published.

You may also like