AI to Replace 50 Percent Low-Skilled Jobs in 5-7 Years
About 50 percent of the low-skill work population worldwide will be supplanted by the AI industry in the next 5-7 years.
One-fifth of the workers will rely on AI by 2022. By 2030, robots will be the preferred workforce for more than three million jobs globally. The global AI market size is valued at $52.8 billion in 2020, which is expected to grow between 2019 and 2022 at a CAGR of close to 45.7 percent. The estimated growth will be $112.2 billion by 2022. Machine learning, image recognition, predictive analysis, and natural language processing will be the prevalent technologies in this market
In North America, the government and the defense sectors made for the largest share of the artificial intelligence industry in 2018. They will continue to dominate till 2022 and will grow at an expected CAGR of 41 percent. In the U.S., the market is fragmented because several start-ups have come up. However, it is expected that the market will consolidate itself in the next few years, with tech giants pushing for inorganic artificial intelligence growth. Video surveillance is being integrated rapidly with AI, prompting the government to spend on cybersecurity solutions integrated with AI and real-time analytics. This will also boost the AI market in the U.S. in the next five years.
The European artificial intelligence market growth has been forecasted at a CAGR of 42-45 percent from 2019 to 2022. The segment of machine learning is a significant contributor to the revenue share of the artificial intelligence market in Europe. It will also be dominant until 2022. The CAGR is expected at 40 percent in terms of growth. Germany contributes to the majority of revenue in the AI market of Europe.
The APAC AI size will grow at a CAGR of 45-48 percent between 2019 and 2022. The Chinese market for AI has been a major contributor to the growth of the sector. Japan is also a major player and is expected to reach the $1,119.7 million mark by 2022. The Indian market is expected to grow at a CAGR of 49.7 percent during 2019–2022.
Since the start of the pandemic, most sectors are increasingly adopting digital services to achieve optimal operational efficiency and automation. Companies are evolving to meet end-users’ expectations. AI helps increase the value by augmenting human skills and extend their capability across verticals. AI ensures a smart R&D, higher customer engagement, production, and efficient maintenance with sales and marketing campaigns. This gives it an edge that allows human jobs to be taken up by AI. With augmented intelligence and chatbots, data labeling, and AI annotation, human intervention’s scope is limited.
- The world’s AI arena will grow at a CAGR of about 45.7 percent for 2019–2022, quickly scaling to reach a market value of $112.2 billion in 2022
- North America has the highest use of AI currently, and therefore, contributes to the largest share of revenue in the global market – approximately 35 percent. The Asia-Pacific and Europe follow it.
- A lucrative market for AI will be APAC in the next five to seven years. AI technology start-ups and cloud-based services will be the driver of this growth.
- When it comes to the U.S., China, India, Japan, and Germany, AI has an advent growth because process automation is high. This is adopted in various industries.
- Several tier-2 suppliers are coming up in the market and have specialized services in agriculture, BFSI, healthcare, and gaming fields. The advent of COVID has hastened digitization that is contributing to an extended dependence on AI and machine learning.
- There could be a marginal increase in prices owing to the increased demand for AI services and projected future growth.
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