- Ellie Tsirou
AI Market to Reach $360 Billion by 2028
Artificial Intelligence (AI) has become immensely popular as industries worldwide rapidly integrate it into their processes to improve their operations and customer experiences. Advances and implementations of 5G, cloud computing and large databases are driving demand.
Fortune Business Insights' latest market research report outlines the global AI market and its future projections. The market is projected to grow from $47.47 billion in 2021 to $360.36 billion at a compound annual growth rate (CAGR) of 33.6% in the 2021-2028 period.
One of the primary growth drivers of AI is the Artificial Internet of Things (IoT) innovation to boost market opportunities. The Internet of Things is powered by three emerging technologies – AI, 5G and Big Data – a smart network of devices that communicate seamlessly over powerful 5G networks.
IoT devices use networks to communicate, collect and exchange information about our online activities generating 1 billion GB of data every day. IoT has four main segments: wearables (smartwatches), smart home (smart speakers & thermostats), smart city (smart public transportation) and smart industry (autonomous manufacturing robots). IoT devices have the potential to transform how we interact with our homes, offices and cities every day.
There are also many other applications of AI, take for example, Machine Learning (ML). It is a subset of AI which focuses on teaching a machine to complete a task based on coded data instructions. Deep Learning is a subset of ML that uses neural networks to train a machine to work similarly to a human brain by following and learning from examples. Natural language processing (NLP) is one of the most common forms of AI. This is used to analyse text, speech, and other communication-based unstructured data to inform follow-up actions. The demand for AI in the healthcare system grew significantly to deal with the challenges during the pandemic crisis. These AI subsets offer various tools and models that improvise traditional analytics and decision-making capabilities. This altogether helps enhance the accuracy and efficiency of diagnostics, treatments, and predictions. During the flare of COVID-19, NVIDIA launched Clara Guardian to enable health workers to respond rapidly to each patient's individual needs. This AI system uses sensors to limit the spread of infectious disease and deliver operating room analytics and workflow automation. Smart hospitals that have adopted this can remotely monitor and detect patient symptoms and ensure the safety of employees and visitors away from high-risk areas of the hospital.
Although AI can provide solutions for the current climate problems, businesses also recognise the significant competitive advantage it can possess. For example, customer engagement providing personalised and dedicated services in real-time is a crucial influencing factor to achieve their goals. AI technology offers industry-specific customer insights for enterprises to implement hyper-personalised marketing strategies. This hyper-personalisation drives profits, offers real-time data-driven decisions, reduces costs, and optimises customer satisfaction. Industries such as financial institutes, retail and e-commerce, healthcare and other people-centric service providers are shifting towards intelligent technology to collaborate with the customers personally. According to a recent survey conducted by IDC Corporate, more than 50% of 2,056 IT and line of business decision-makers and influencers say that customer experience is their leading driver for AI adoption. By leveraging different types of AI, companies can unlock insights into consumer behaviour, allowing for tailor-made decision-making and the ability to offer what a customer wants and needs.
Reports and surveys done by IEEE and The Payments Association have revealed that machine learning, cloud computing and 5G would be the most critical technologies for the next few years.
In July 2021, Qualcomm Technologies Inc acquired an on-board AI research team and assets such as the AI research community's high-quality video dataset from Twenty Billion Neurons GmbH. Other top players who have been reported to invest in new and upcoming AI systems include OpenAI, Amazon Inc, Apple Inc, Facebook LLC (now Meta), and IBM Corporation.
Although the AI market is forecasted to grow exponentially, promising to deliver many advantages to both businesses and individuals, some may question its security risks due to many scandals like Facebook with Cambridge Analytica leaking personalised data to manipulate voting results.
New technology uses machine learning and deep learning tools to offer related results to users. These tools, such as search algorithms, adtech networks, and recommendation engines, can exploit the user's sensitive data. According to market researchers MarketsandMarkets, over the last four years, there has been a 78% increase in financial impact caused by cybercrimes. An increase in data from various sources has prompted governments and industry bodies to construct AI regulations. The United Nations has begun developing what they have called "a comprehensive global standard-setting instrument" to provide a global AI framework to ensure privacy and human rights are protected. However, until roadmaps are clearly defined, AI companies must establish their own ethical frameworks appropriately.
Each industry will have its approach to utilising new emerging technologies. Over the past year, the world has experienced many disruptions, and AI has been one of the core aids to survival. As technological progress continues its relentless advance, the world may look very different for future generations. Far more discussion, research and policy engagement are needed to address this revolution, and at its accelerating rate, there has never been a more critical time than now.