The global artificial intelligence market is valued at USD 22.59 Billion in 2018 and expected to reach USD 357.26 Billion by 2025 with the CAGR of 48.35% over the forecast period
Artificial intelligence (AI) is a branch of computer science referred to building smart machines capable of performing tasks automatically. In 1956, the term artificial intelligence was invented, since then AI has become more popular technology just because of its data volumes, advanced algorithms and improvements in computing power and storage. AI can be adapted through progressive learning algorithms to let the data do the programming. It also finds structure and regularities in data thus the algorithm acquire a skill that the algorithm becomes a classifier or a predictor. The combination of Internet of Things (IoT), sensors and artificial intelligence have the ability to connect with large volumes of data and learn patterns in the data to automate tasks for a variety of business profits. This technology operates by combining large amounts of data with fast, iterative processing and intelligent algorithms enabling the software to learn automatically from various patterns or features in the data.
Global Artificial Intelligence Dynamics:
The growth of the artificial intelligence is primarily driven by some key factors such as growing demand for AI in almost every industry vertical to enhance business productivity, increased application scope of artificial intelligence in surveillance, new advances in analytics technologies such as computer vision and time series analysis and rising penetration of digital technologies. In manufacturing industry, artificial intelligence can analyze factory IoT data as it streams from connected equipment to predict expected load and demand using recurrent networks with the help of deep learning network used with sequence data. Machine learning has the potential to improve around 20% more production capacity through predictive, optimized maintenance of machines. In addition, AI is being largely adopted in the healthcare industry for dosing drugs and different treatment in patients and for surgical procedures in the operating room.
Furthermore, increased use of Artificial Intelligence (AI) brings social and economic benefits to the industries and growing government departments initiatives which are deploying AI applications are other major factors driving the growth of artificial intelligence market. For example; it has been estimated that AI could add an additional USD 814 billion to the UK economy by the end of 2035 at the annual growth rate of GVA from 2.5 to 3.9%. Artificial Intelligence (AI) investment is gaining significant drive with around 42% of companies planning to invest in the next five years, whereas 21% top of the one in five companies that already invested in AI during the last year.
The software market for artificial intelligence is anticipated to hold the major market share during the forecast period. It is due to a rising need for AI platforms for various types of software development. Top performing companies heading to use AI for marketing. For example; Netflix saved around USD 1 billion in annual revenue by improving its recommendation algorithm. The digital streaming platform giant Netflix revealed that it escaped thousands of canceled subscriptions by improving its personalized recommendation algorithm. It shows that Netflix has successfully recognized the trends in artificial intelligence and used them for superior market its services.
Recently, Japan passed a bill to build AI-powered super cities addressing societal issues.
In May, 2020; Japan has passed a bill to form super cities which resolves societal issues using latest digital technologies such as artificial intelligence. This bill is passed aims to boost the sweeping change of regulations across various fields to support the creation of super smart cities. Depopulation and an aging society will be the primary focus of the super cities. The emerging technologies such as big data and artificial intelligence will be the basic pillars to successfully tackling the city issues. Large amounts of data will be effectively collected and organised from across administrative organisations.
European states implementing Artificial intelligence for optimized mobile communication:
European states are setting up the 5th generation of mobile communication, so that researchers and scientists are already working on its optimization. The EU Project named Artificial Intelligence Aided D-band Network for 5G Long Term Evolution takes together partners from research and industry from five countries. The main objective of this project is to develop energy-efficient and reliable mobile communication links based on frequencies in the D-band 130—174, 8 GHz. With its combined bandwidth of more than 30 GHz, the D-band is perfectly suitable for quick data transmission.
Artificial Intelligence enabled chips are the biggest trend in Artificial Intelligence. The growth of the artificial intelligence enabled chips is expected to reach revenue of around USD 89,185 Million in 2025 from USD 6,529 Million in 2018. While to brands have already started integrating AI-Enabled Chips and it will soon be added to the latest smartphones. It is essential due to the fact that AI required specialized processors along with the CPU. The extra hardware part is required to execute the mathematical computations that are needed for AI models. Therefore, these AI-enabled chips will transform the task in easier mode with artificial intelligence technology such as facial recognition, natural language processing & object detection and computer vision.
Many leading companies are producing AI-Enabled Chips that can help in improving the performance of AI applications. For example; NVIDIA, Qualcomm and AMD that are making AI-Enabled Chips in an effort to get the operational benefits. In fact, Qualcomm is launching its new AI-Enabled Snapdragon processors in 2020 that will be able to perform 15 trillion operations per second with efficiency.
Many industry verticals are heading towards automated machine learning in the coming years. Conventional machine learning tools are relatively complex and expensive in the real time for all business operations. So that the use of automated machine learning which enables even ML inexperienced professional to use machine learning algorithms and techniques without being an expert in the technology. For example the tools like Google Cloud AutoML can be used to train custom made and high quality ML models though having the minimum required machine learning expertise will have become more popular in the next few years.
The integration of artificial intelligence and cloud computing has immense potential to transform the market approaches and create new methods of improvement. Artificial intelligence has huge potential and is the technology of the future but the integration of AI also needs skilled employees and huge infrastructure. To deal with this, Cloud Computing can provide better support even if companies don’t have any computing power and access to large data sets. Companies can still gain the benefits of artificial intelligence through the cloud without spending huge amount of money.
Furthermore, artificial intelligence can also be used to determine and manage issues in the cloud. Some technology specialists reported that AI can first be used to automate the workflow of both the private and public cloud computing systems. For example; the most famous cloud leaders in the market that incorporate AI into their cloud services are Amazon Web Service (AWS), Google, IBM, Alibaba and Oracle.
Facial recognition is an artificial intelligence application platform which helps to identify a person with their digital image or facial features patterns. In 2020, this technology is expected to witness a strong growth in the use of facial recognition technology with more reliability and improved accuracy. For example; Facebook’s Deepface program is being used to simply tag users’ family and friends in their photos, and another example of facial recognition in IPhoneX is used as a digital password. At present, people are moving towards personalized options whether it is a shopping or advertising. As a result of this, this technology gain attention for biometric identification to a large extent. Additionally, facial recognition technologies can recognized as a valuable entity in the healthcare sector too for following performing clinical trials and medical diagnostic procedures.
Interested in this report?
24 Sep 2020