Artificial Intelligence - Market Outlook and Expert Insights
Expert consults have defined Artificial Intelligence as the branch of science which deals and helps machines in finding solutions to complex problems. It is categorized as the simulation of human intelligence processes by machines especially through computer systems. Artificial intelligence is characterized by the creation of intelligent machines that works and reacts like humans. AI has the capability to enhance and augment conventional enterprise processes.
Artificial intelligence is one of the most widely discussed topics nowadays in technology insights. Industry and experts analysts argue that artificial intelligence has a great future and potential to transform businesses and increase revenue generation. Examples of Artificial intelligence includes speech-recognition, problem-solving, learning and planning among others.
Surveys conducted by industry experts of artificial intelligence found that the most widely used AI application in the businesses today is voice recognition.
Artificial intelligence has shown rapid growth in the technology market over the last few years. Through research studies related to artificial intelligence, industry experts have gained various critical insights about the pros and cons of this technology. Expert’s experience that by the application of artificial intelligence, the chances of error becomes almost null and accuracy becomes maximum. The cost incurred in the installation, maintenance, and repair of artificial intelligence systems and concerns related to data privacy are some of the restraining factors related to Ai.
Drivers - Global Artificial Intelligence market is being driven by the rising demand for intelligent virtual assistants and the growing adoption of cloud-based applications and services. The rapid increase in the rate of data generation, advantages of reduced costs, increase in operational efficiency, and rise in the need to improve customer experiences by the end use industries are the few factors which are foreseen to drive the growth of artificial intelligence market globally.
Restraints - Limited availability of skilled and experienced experts of artificial intelligence is restraining the growth of this market as exceptional software engineering skills are required to work on artificial intelligence systems.
Opportunities- Experts have predicted that the increasing demand for analyzing and interpreting the huge amount of data volumes, rising investments in artificial intelligence coupled with the rise in innovative start-ups are anticipated to create lucrative business growth opportunities for the global artificial intelligence market players.
Challenges - Industry experts have concluded that the adoption of artificial intelligence requires a huge amount of installation and maintenance cost which creates hindrance for the growth of this market. In addition to this, it is also difficult to predict and measure the return on investment in AI. Data privacy and safety concerns among customers is another crucial issue which is preventing the mass adoption of AI technology.
The end-user industries of global artificial intelligence market include BFSI, Telecom, Retail, Healthcare, Media & Advertising, Automotive & Transportation, Agriculture, Manufacturing, and Others.
Artificial intelligence plays a major role and is being widely used in various industries. Experts experience says that among all the end user industries of artificial intelligence, the manufacturing industry is expected to grow at the highest pace due to the growing need for automation in this industry. Expert insights say that artificial intelligence is being extensively used in the manufacturing sector which is facilitating the process of industrial automation. Deployment of AI in manufacturing plants enables businesses to completely transform their processes by enhancing their production efficiencies and reducing their operational costs.
Analyst views BFSI as one of the major industry vertical where Artificial intelligence adoption will grow at an exponential rate. In the banking sector, artificial intelligence is being used to enhance customer experiences by improving security, risk management, and efficiency. It is projected that AI in the banking sector will gain the utmost importance and lead to huge revenue potential and varied innovations. Further, artificial intelligence is also used in Fintech companies for handling a huge volume of data and improving customer experiences.
Experts experience the role of artificial intelligence in the telecom industry to be limited to Chabot's which are helping to automate customer service inquiries. AI also helps in improving network efficiency, lowering operational costs and providing quality service to customers.
Expert consultants believe that artificial intelligence will offer a wide range of applications in the retail sector by providing instant support to the customers, reducing manpower costs, and providing 24*7 assistance to the customers. Industry experts are focusing on building artificial intelligence solutions for the retail sector to provide detailed insights into buyer’s purchasing power which will, in turn, help retailers to optimize their product portfolio for better service experience.
Industry experts have projected that by 2020, an average of $54 million will be spent by the healthcare companies on artificial intelligence projects. Artificial intelligence is foreseen to have great potential in the healthcare industry by the analysis of experts. Analysis and compilation of medical information, CT scans, health monitoring, and drug creation are some of the major applications of artificial intelligence in healthcare. AI is also being used to highlight discrepancies in treatment and workflow inefficiencies in order to avoid unnecessary patient hospitalizations.
Expert’s insights have said that the applications of artificial intelligence in the media & entertainment industry are growing at a rapid pace. Automation of both the pre and post-production processes of the movies is being done through artificial intelligence. AI is even useful for film producers to automate and accelerate their process of script breakdown, storyboard, shot-list generation, scheduling, and budgeting among others. Experts predict that artificial intelligence is expected to play a major role in the production field to automate the time-consuming tasks like syncing and grouping of clips.
Business consultants say that artificial intelligence is transforming the trend of the whole automotive industry by driving all the big players to rapidly automate their operations with the help of AI technology. The major application of artificial intelligence in the automotive industry is driverless cars. Artificial intelligence is used in the automotive industry to minimic, augment and support the actions performed by humans and simultaneously it is also used to leverage the advanced reaction times and even pinpoint precision of machine-based–systems. Expert’s analysis expects that the installation rate of AI-based systems in new vehicles will rise to 109% by 2025.
As we all know, the agriculture industry is the foundation of the various developed and developing economies worldwide. The most popular applications of AI in the agriculture industry include agricultural robots, crop & soil monitoring, predictive agricultural analytics and supply chain applications. Expert have analyzed the agriculture industry is growing at a rapid rate with the implementation of AI coupled with farmers ready to accept sensors and soil sampling to gather data and store them for better processing and analysis.
The other end users of artificial intelligence include the aerospace industry, education, gaming, human resources, and law among others.
Experts analyzed that the global artificial intelligence market accounted for $1.6 billion in 2018 and is foreseen to reach $31.2 billion in 2025, growing a CAGR of 52.6% during the forecast period from2018 to 2025. Some of the key players operating in the artificial intelligence market include Intel, Samsung, Facebook, Google, Microsoft, IBM, and AWS among others.
Industry experts witnessed that the most important role of AI in the business world is to increase customer engagement. They predict that 56% of companies expect AI to create a huge impact on small scale businesses.
Artificial intelligence plays a major role in BFSI, Telecom, Retail, Healthcare, Media & Advertising, Automotive & Transportation, Agriculture, Manufacturing and other industries. Insights from experts say that the applications of artificial intelligence are limitless. With rising venture funding, more and more innovative start-ups are entering into the artificial intelligence market. Experts witnessed that global funding of AI start-ups has experienced a growth of 70 % in the past few years.