AI becoming 'need to have' technology in some industries
Artificial intelligence within the enterprise, consumer, government and defense markets is shifting from a conceptual “nice to have” technology to an essential component for driving improvements in quality, efficiency and speed, according to a new report from market intelligence firm Tractica.
The top sectors where AI is likely to bring major transformation are those in which there is a clear business case for incorporating the technology, rather than use cases that might not generate return on investment (ROI) for many years, the study said.
“The global AI market is entering a new phase in 2020 where the narrative is shifting from asking whether AI is viable, to declaring that AI is now a requirement for most enterprises that are trying to compete on a global level,” said Keith Kirkpatrick, principal analyst at Tractica.
The report, which predicts that annual global AI software revenue will grow from $10.1 billion in 2018 to $126.0 billion by 2025, said AI is likely to thrive in consumer, automotive, financial services, telecommunications, and retail industries. The online consumer sector in particular has shown its ability to capture AI, thanks to the combination of three key factors: large data sets, high-performance hardware and advanced algorithms.
Tractica forecasts that many other verticals will follow and replicate a strategy similar to the consumer companies.