Artificial Intelligence is the simulation of human intelligence by machine through learning, reasoning and self-correction. It is being used in enterprises to automate and for various end user applications like facial recognition, video analytics, speech recognition etc.
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Artificial Intelligence market frequently asked questions
The artificial intelligence market in North America is valued at $2.5 Bn, and $1.3 Bn and $2.4 Bn for the European and Asia Pacific market region respectively.
The global artificial intelligence market was valued at $7.35 billion in 2018.
The global artificial intelligence market is forecasted to grow at a CAGR of about 46 percent during the forecast period between 2018 and 2024. As per Beroe's market research analysis, the AI market size is expected to reach $71 billion by 2024
ML, predictive analytics, NLP, and image recognition are prevalent technologies in the AI market.
Looking at current AI trends from Beroe's reports, AI will probably take over about 50 percent of the less-skilled jobs around the world in the next five to seven years. It is also expected that one in five individuals in the workplace will rely on AI to do their job by 2022. From the AI trends analysis, by 2030, robots will be the most preferred workforce.
Some of the major AI market leaders are Google, Microsoft, IBM, Facebook, TCS, Infosys, Wipro, Fanuc, Baidu, Apple, and Siemens.
The major end-use industries are manufacturing, media and advertising, healthcare, BFSI, transportation, and automotive.
The most notable AI products as of 2020 are Microsoft Cortana, Google DeepMind, Microsoft Azure, HP Haven OnDemand, Wipro Holmes, IBM Watson, TCS Ignio, and Salesforce Einstein.
At present, the highest adoption of AI can be seen in the North American market. Besides, it also holds the largest revenue share with more than 40 percent of the total market. Next in line are the Asia-Pacific and European regions.
Over the next 5-7 years, the APAC is expected to emerge as a lucrative market for AI growth. The key market drivers responsible for the growth will be the emergence of cloud-based services and several AI technology start-ups offering innovative products and services.
According to Beroe's AI market reports, the North American AI market growth was at a CAGR of about 41 percent during 2018 and will continue at the same rate until 2023.
Artificial Intelligence market report transcript
Global AI Industry Outlook
The worldwide AI software market is forecasted to be $63.4 billion in 2022. The market is predicted to grow at a CAGR of about 15.2 percent between 2021 and 2024
Machine learning, natural language processing, and analytics are the most widely adopted AI technologies
AI: Market Overview
The demand for artificial intelligence software is increasing with improved buyer maturity and supplier innovation capabilities. Enterprises are focused on driving digital transformation initiatives with artificial intelligence and cloud services at the forefront
The global AI software market is forecasted to grow at a CAGR of about 15.2 percent for 2021–2024. The market is forecasted to be $63.4 billion in 2022
Currently, North America has the highest adoption of AI, also, the largest revenue share in the global market, i.e., 36 percent (approx.). The US and China are the leading countries driving innovation in artificial intelligence and higher market adoption
Globally, enterprises are prioritizing phased deployment of artificial intelligence and other digital services, to meet IT transformation objectives
Investments toward artificial intelligence solutions are forecasted to increase, despite inflationary pressures on global IT budgets
Suppliers are actively engaging in providing digital training to equip skilled resources. Currently, availability of skilled artificial intelligence resources is lower compared to the growing enterprise demand for AI services
Artificial Intelligence Market Outlook
Development of innovative AI-based enterprise applications is driving the adoption of AI software and services. 71 percent of global AI spend is attributed to AI-based software and services
Adoption of AI solutions by the retail and BFSI industries is high, to automate operational processes and improve front-end customer services
Healthcare and life sciences institutions have increased the spend on artificial intelligence-driven research, drug discovery, increased patient care, and operational processes
Global AI: Industry Trends
NLP and ML are major AI technologies, which are shaping the AI market space. Robotics, vision, and speech are also contributing significantly toward the artificial intelligence industry's growth
Many start-up companies are entering the market, with new ideas and innovations, in the field of ML, vision, speech, and autonomous cars
Regional Market Outlook on Artificial Intelligence
The North American AI market is expected to grow at a CAGR of about 14–16 percent from 2021 to 2024
The US AI market is highly fragmented, with a presence of a huge number of start-ups in the country, however, the market is expected to undergo consolidation in the coming years, with tech giants, such as Apple, Google, Microsoft, Intel, Amazon, IBM, etc. thrusting on inorganic expansion in the country’s AI market
Growing trend of integration of video surveillance with AI for video analysis, coupled with rising government spending on cyber security solutions, integrated with real-time analytics and AI, is expected to boost the AI market in the US over the next five years
North America is facing strong demand for skilled AI professionals in the banking and financial services industry, due to higher adoption of the technology
The European AI market is expected to grow at a CAGR of about 13–15 percent from 2021 to 2024
The Russia–Ukraine conflict has led to an increase in the cost of cloud services, due to oil/gas crisis and subsequent increase in data center operational costs
The ML segment continues to contribute to majority of the revenue share of the European AI market, and it would continue to be a dominant market until 2022 and is expected to grow at a CAGR of approx. 40 percent
Germany has the major revenue share of the European AI market, with a Y-o-Y increase of ~40 percent
Robotics, manufacturing, and healthcare are the major end-user industries implementing AI
The APAC AI market is expected to grow at a CAGR of about 15–19 percent from 2021 to 2024
China is a world leader in artificial intelligence solutions and is competing with the United States. Adoption of the technology is high across enterprises and government units in China
The government & defense segment contributes to the largest share of the APAC AI market
India has developed a national strategy for artificial intelligence solutions, to increase AI market maturity and adoption in healthcare, agriculture, education, transportation, smart cities, and infrastructure industries
Global AI: Drivers and Constraints
Re-prioritization of IT Strategies
- Globally, enterprises are investing toward digital transformation initiatives and developing strategies for adoption of artificial intelligence solutions to aid operational efficiencies and customer experience
AI Analytics Potential
- With increased buyer and market maturity, the application of artificial intelligence analytics tools for enterprises/business is significant. Data-driven AI insights, identification of trends, and automation of processes enable enterprises to have a competitive edge over others in the industry
AI-assisted Supply Chains
- In the current global scenario, where supply chains are stretched and disrupted, artificial intelligence solutions are increasingly being leveraged for effective supply-demand forecasting, and early identification of potential risks.
Digital Skill Gap
Technology industry leaders are increasingly investing toward introducing programs to support digital skill development across educational institutions globally. Investment toward reskilling of employees is also increasing, to bridge the digital skill gap caused by high demand for AI
The Russia–Ukraine war crisis, global inflation, and increase in cost of input resources may impact enterprise IT budgets in the short to medium term
AI: Industry Applications
Video analytics in retail integrated with surveillance cameras provides situational awareness of business operations, delivering insights about risk, safety, and security.
Speech recognition technologies integrated into call centers automate the identification of callers.
Personal assistants on consumer smartphones provide guidance and services using natural language and enhanced search using individual verbal communication.
Automated approval or credit decision. Such capabilities can deliver accurate decisions in a fraction of the time compared to manual decision making.
In healthcare, cognitive analytics enables better treatment and analysis for patients with potential abnormalities.
In legal research, cognitive expert systems aid in accessing millions of data sources, synthesize information and present it as a user-dashboard.
Software tools and personal agents can understand user work patterns and thereby enhance productivity. E.g., Mailbox and Calendar sorting by user preference.
AI: Major Market Developments
Patient diagnosis using their baseline health data
Early identification of pandemic, epidemic, and endemic diseases
Imaging diagnostics (radiology, pathology)
Medical insurance and claims scheduling
Medical data-driven diagnostics and virtual drug development
Deployment of robot doctors in patient diagnosis and treatment
Autonomous fleets for ride-sharing,
Driver assist, engine monitoring and predictive maintenance
Automated driver assistance systems (e.g., parking assistance, lane correction, and centering, adaptive cruise control, etc.).
Just-in-time/on-demand parts manufacturing and maintenance
Customized financial planning and assistance
Fraud detection and anti-money laundering
Automation of banking processes, i.e., back office, customer-facing roles, etc.
Automated insurance underwriting
Implementation Framework for AI
Presently, enterprises are adopting innovative approaches to their IT infrastructure for gaining maximum benefits from cognitive computing implementation.
Enterprises are integrating their existing traditional systems/architecture into dynamic, open standard-based infrastructure with the inclusion of cloud
(public/private/hybrid) as the fundamental component.
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