Frost & Sullivan business consulting firm has estimated that the artificial intelligence market will annually grow by 31%. Forecasts say that the figure will reach $52.5 billion by 2022 outperforming the results of 2017 by four times. Gartner research and advisory company believes that AI revenue will grow by 60% annually in the next three years.
Read in the article which countries, companies, and activity areas will benefit the most from the development of artificial intelligence technologies.
AI application areas
Artificial intelligence technologies optimize and automate different processes allowing companies to fulfil necessary tasks in various fields faster and with higher quality. Unlike people, machines have no emotions and work without breaks and weekends. The use of AI systems eliminates the influence of the human factor. This facilitates the use of artificial intelligence in many areas.
Today AI systems:
- learn big data sets;
- recognize visual images, objects, and texts;
- analyze images;
- automate production processes;
- generate texts, medical formulas, and images;
- diagnose illnesses and prescribe treatment;
- give loans;
- draft recommendations for customers and choose appropriate goods;
- manage autonomous vehicles;
- create websites;
- do predictive analytics and other tasks.
With artificial intelligence technologies, consumers receive higher-quality products and personalized services, and manufacturers get rid of routine, reduce expenses, and increase revenues.
Which industries will the AI adoption affect most of all
Huawei representative William Xu said that the machine learning and neural networks market would grow to $380 billion by 2025. The company thinks that 90% of all developments will account for enterprise solutions.
Tractica conducted a research and revealed that in late 2018 artificial intelligence was used in 258 areas from advertising and car manufacturing to transport and telecommunications. From the standpoint of delivered benefits, the following AI application areas are the most popular:
- video surveillance;
- monitoring and management of IT networks and operations;
- customer service and marketing;
- voice recognition;
- object detection and collision avoidance by cars;
- patent analysis;
- video and photos on demand;
- analysis of medical images;
- patient data processing;
- predictive maintenance.
Frost & Sullivan’s report says that the mainstream adoption of AI solutions will increase the goods and services market volume by $15.7 trillion by 2030.
PwC believes that artificial intelligence will have the greatest impact on healthcare and car manufacturing enterprises.
In the medical industry, AI solutions will process data, help to diagnose illnesses accurately, prescribe treatment and preventive measures. Analysts from Frost & Sullivan have calculated that by 2021 revenues of companies that deliver AI products to the medical sector will reach $6.1 billion. IBM will account for 45% of that revenue.
In the car manufacturing industry, the impact of artificial intelligence will be seen in the carsharing sector with the use of autonomous cars, smart driving assistants, and interior monitoring systems. According to the forecast of RVC and Frost & Sullivan, by 2025 the autonomous vehicle market will grow to $84 billion. PwC thinks that transport infrastructure will be fully autonomous in big cities throughout the world by 2040.
Besides, AI will influence finance sector, logistics, transport, technologies, communications, entertainment, retail, energetics, and production.
Which companies will benefit from AI?
In 2017, the American entrepreneur and billionaire Mark Cuban stated that the first owner of $1 trillion would be the specialist in artificial intelligence and related areas that would find new use for the technology and make the most of its potential. In his opinion, companies that do not implement neural networks and deep learning have no big future.
The fact that today such leading global corporations as IBM, Google, Microsoft, Apple, Amazon, Intel, and Qualcomm are developing AI solutions and thanks to that building up revenues confirms the soundness of the statement above. For example, NVIDIA released GPU chips designed for machine learning purposes. It has been a trigger for its stocks to grow by 1150% in price in three years.
Feeling the demand in new AI products and willing to make good profit, different developers enter the market with their startups. Today such projects are attracting record investment amounts.
For instance, Chinese company SenseTime, which develops face recognition systems, has become the most expensive AI startup in the world raising $1.2 billion in 2018. Another Chinese company that develops robots using artificial intelligence, UBTech Robotics, received $820 million in investments. The American startup CrowdStrike, which developed CrowdStrike Falcon platform, raised a total of $481 million over 7 years.
However, startups often lose to tech giants in the competition for dominating the AI market. Big corporations have huge budgets and resources to promote and realize products. Startups often cannot boast these things. Therefore, it often happens that young companies do not survive competition and close down or get acquired by bigger corporations. For example, Google purchased the British company DeepMind that developed the neural network capable of playing video games like a human.
Which countries will benefit more from AI?
PwC's research has shown that the AI adoption will lead to the growth of the global GDP by $15.7 trillion to make $90 trillion.
Analysts think that $6.6 million gain will owe to the automation of production, among other things, thanks to the use of robots and autonomous cars. Figures will grow because personnel will be doing their job better using AI solutions.
Besides, AI technologies will improve the quality of goods and services. This will lead to the growth of consumer demand providing $9.1 million gain to the GDP.
Specialists suppose that the integration of artificial intelligence in different areas will positively affect economies of all regions of the world. However, China and North American countries will benefit the most.
According to the research of Frost & Sullivan, even today USA, China, and UK are the world’s leaders in terms of investments in AI technologies and concluded deals in this field.
AI in the Russian market
The growing number of companies that integrate AI technologies in their operations signifies the active adoption of artificial intelligence in Russia.
Head of Abbyy Russia Dmitry Shushkin noted that in 2017 just several dozens of projects were using artificial intelligence in Russia. However, their number grew to several hundred in 2018. Most actively AI solutions are implemented by players of the finance market, energy providers, retailers, and communications enterprises, for example, Sberbank, Gazprom Neft, Severstal, and MTS.
According to forecasts of Zircon Research group, the Russian artificial intelligence and machine learning market will grow to 28 billion rubles by 2020, which is 40 times more than in 2017.
Norbit official Dmitry Timakov believes that in Russia AI is most successfully integrated in such processes as:
- personalization of offers, development of recommendation services;
- content processing (analysis of feedbacks, queries, detection of bots);
- development of smart and secure city systems (forecasting of traffic jams, traffic management);
- assistance to doctors when they conduct researches;
- automation of production processes.
You can learn more about the development and implementation of artificial intelligence in Russia at AI Conference held in Moscow.
Artificial intelligence is a fast-growing technological tool that can affect many processes. Both business and government officials and end consumers of goods and services will benefit from the integration of artificial intelligence in different activity areas. However, in the pursuit of big profits and leadership in the market, people should not forget that AI products and solutions should work for the society’s welfare.