The market for artificial intelligence (AI) was expected to be worth close to USD 59.67 billion in 2021 and is anticipated to grow at a CAGR of 39.4 per cent to reach USD 422.37 billion by 2028. Rapid AI Growth is going to propel innovation and enhance the flywheel of innovation convergence.
Highlights Of AI Growth
In 2021, North America held the top spot in the worldwide artificial intelligence (AI) market, contributing over 43% of total revenue. Palantir is one of the leaders in AI growth. As part of this effort, federal authorities have set guidelines for the creation and practical use of AI-based systems in a number of industrial areas.
The market in the Asia Pacific is anticipated to grow at the quickest CAGR over the anticipated time frame. This expansion has been spurred by the application of AI services in important end-user industries including healthcare, manufacturing, and automotive in countries like China, Japan, South Korea, and Australia.
Government spending on AI and related technologies have surged as a result of expanding applications and straightforward deployment methods that have caught the attention of private companies and governments.
The Core
A subfield of computer science known as artificial intelligence (AI), often known as machine intelligence, is concerned with the development and administration of technology that may learn to make decisions and carry out tasks on behalf of people.
Artificial intelligence applications for quantum computing and supercomputers are currently being tested against intelligence standards that are outside the range of human perception. These developments in artificial intelligence technology are probably going to help the artificial intelligence market expand in the next years.
AI Growth Drivers
The robotics industry is currently undergoing major change thanks to AI, notably computer vision and machine learning. To be competitive in a global market, companies are investigating fully autonomous robots that can perceive, interact, and conceptualize the environment around them.
As they start to lead this present technological transition, industries are looking for dependable and skilled technology companions. Deep learning models use artificial neural networks to process massive volumes of data, including images, texts, and audio, and then deliver accurate results. Automation fueled by artificial intelligence has been successful in a number of industries, including healthcare, aviation, agriculture, energy, and material handling.
Along with automating processes, AI is frequently used to diagnose equipment malfunctions and find product anomalies. All of these elements guarantee the growth of the worldwide artificial intelligence (AI) market over the anticipated time frame.
Challenges
To develop, operate, and deploy AI systems, businesses require personnel with a specific set of skills. For instance, people who work with AI systems should be knowledgeable on technologies like deep learning, cognitive computing, machine learning, and image recognition. Additionally, integrating AI solutions with existing systems is a difficult task that requires a lot of data processing to simulate human brain activity.
A system’s failure or a solution’s malfunction can be caused by even minor flaws, which can significantly affect outcomes and intended consequences. These elements may have an impact on market expansion during the anticipated term.
Possible Tailwinds
Government spending on AI and related technologies have surged as a result of expanding applications and straightforward deployment methods that have caught the attention of private companies and governments.
Funding for AI-based pilot initiatives has started to be allocated by government agencies, public sector organizations, and non-governmental organizations in a number of fields, including traffic management, road & public safety, and government document digitization.
In August 2020, the US government promised more than USD 1 billion in financing for research centers on quantum information technology and AI. Additionally, the UK government has invested USD 27.5 million in 15 ground-breaking AI research initiatives in the healthcare sector, while the Canadian government offered USD 518 million in March 2021 to build advanced technology research infrastructure.
Dangers Alongside AI Growth
Security dangers will increase in frequency in the future. The cost of cybercrime has increased by almost 78% over the past five years, and handling invasions now takes twice as long. Several IT teams are having trouble keeping up with the increasing volume of data from various sources. The inefficiencies of maintaining exabytes and petabytes of data have increased security breaches and data losses.
Marketing teams need real-time and secure data to deliver an excellent client experience in today’s cutthroat market. Businesses are gathering data from many sources and analyzing it online. Such information, which is used for support and communication, can take many different forms. Examples of these data types include client-provided small, large, and public data.
As the volume and sophistication of cyberattacks have significantly increased, businesses must offer high-level data protection in order to maintain consumer confidence. The expansion of the global artificial intelligence (AI) industry is significantly hampered by all of these problems.
Market Segmentation
The market is divided into services and solutions based on its component parts.
The market is divided into segments according to technology, including computer vision, machine learning, and natural language processing. Healthcare, IT & communications, manufacturing, retail & e-commerce, automotive, BFSI, and other industries are included in the market’s industry vertical section.
Key Players Driving AI Growth
* Palantir Technologies * Alphabet Inc. * Microsoft Corporation * IBM Corporation * SAP SE * Baidu Inc. * Intel Corporation * Amazon Web Services Inc. * Samsung Electronics Co.Ltd. * SAS Institute Inc. * Facebook Inc. * Salesforce.com Inc. * Oracle * Cisco * Alibaba Cloud * Siemens * NVIDIA Corporation * Huawei.
Conclusion
AI Growth is going to create a new cohort of innovative companies that will weave together world of bits and atoms. Any company that can capture a meaningful portion of this growing market will thrive and their shareholders will be rewarded handsomely.
