Global Artificial Intelligence (AI) spending is projected to double over the next four years, growing from $50.1 billion in 2020 to over $110 billion in 2024. According to the Worldwide Artificial Intelligence Spending Guide of the International Data Corporation (IDC) and artificial intelligence experts, spending on AI systems will accelerate over the coming several years as organizations use artificial intelligence as an element of their competitive digital transformation applications in the digital economy. The compound annual growth rate (CAGR) will be 20.1 percent for the period 2019-2024. This article talks about how AI is changing how we live and how it continues to grow with time.
Table of contents
- COVID-19 will continue to drive AI adoption
- Why is artificial intelligence important?
- AI spending will be in retail and banking
- Top Artificial Intelligence trends everyone should be watching
- Conclusion
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COVID-19 will continue to drive AI adoption
The coronavirus impacts will drive AI adoption and spending owing to business demand for new ways to solve IT problems today. According to the IDC AI spending guide, spending in 2020 will be $14.5 billion for AI applications, while spending in AI services will be $14.5 billion. AI servers will see spending this year at $11.2 billion, dominating AI hardware spending. The fastest growth in AI spending by 2024 will be in software, with a CAGR of 22.5 percent for five years.
Why is artificial intelligence important?
Artificial intelligence was coined in 1956, but today, thanks to increased data volumes, advanced algorithms, and improved computing power and storage, AI has become more popular. Here is a list of reasons why AI is essential.
1. AI automates repeated learning and discovery through data.
AI does many high-volume, computerized tasks reliably and without fatigue, rather than automating manual tasks.
2. AI adds intelligence
Automation, conversational platforms, bots, and smart machines are combined with large amounts of data to improve many technologies, ranging from security intelligence to investment analysis, both at home and on the job.
3. AI adapts through progressive learning algorithms.
Backpropagation is an AI technique that allows the model to adjust, through training and added data when the first answer is not right.
4. AI analyzes more and more in-depth data.
With big data and incredible computer power, everything has been changed. It takes a lot of data to train profound learning models because they learn directly from the data. The more data you can fuel it, the more accurate it becomes.
5. AI achieves incredible accuracy.
AI techniques from deep learning, image classification, and object recognition can now be used in the medical field to find cancer with the same accuracy as highly trained radiologists on MRIs.
6. AI gets the most out of data.
When algorithms are self-learning, the data itself can become an intellectual property. Since the data’s role is now more critical than ever before, it can create a competitive advantage.
AI spending will be in retail and banking
Retail and banking are the two industries that will most likely splurge in the years ahead, as predicted by artificial intelligence developers. The former, unsurprisingly, will concentrate more on customer experience, while the latter will invest in analyzing and investigating fraud and program consultants and recommendations. The retail and banking industries are expected to spend the most on AI solutions over the whole forecast period. The retail sector will use AI mainly to improve customer experience through chatbots and recommendation engines. The banking sector will be used primarily to analyze and investigate fraud, project consultants, and recommendation systems.
Software and services will provide each account for more than one-third of total AI spending this year, with the remainder being hardware. AI applications ($14.1 billion) account for the largest proportion in terms of software spending. IT services ($14.5 billion) make up the most considerable portion of the service expenditure. Servers ($11.2 billion) dominate in hardware terms. Software spending will grow as fast as possible over the forecast period, with a compound growth rate of 22.5 percent over five years. From a regional perspective, the United States will account for more than half of the AI spending over the whole forecast period. In essence, the US will use AI for retail and banking. Western Europe closely follows the US in banking, retail, and discrete manufacturing with AI applications. China ranks third and will apply AI to government services at national and local levels. Also, AI will be used in banking and other professional services. The regions with the most substantial growth in spending are Japan (compound annual growth rate of 32.1 percent) over the five-year forecast period.
Top Artificial Intelligence trends everyone should be watching
Research, development, and deployment spending continue to rise, and the broader social implications of the debate are raging on. Meanwhile, the incentives are only getting more significant for those looking to roll out AI-driven innovation into new industries, science fields, and daily lives. Here are some trends that we’re likely to see.
- AI will recognize us, even if one doesn’t recognize it.
- AI will monitor and fine-tune business processes increasingly.
- AI will become ever more present in cybersecurity.
- More devices will run AI-powered technology.
- Human and AI cooperation increases
- More and more personalization will happen in real-time.
- AI increasingly at the “edge.”
- AI grows increasingly useful as data becomes more accurate and available.
- AI increasingly employed to create films, music, and games
- More people will interact with AI, maybe without even knowing it.
Conclusion
Artificial Intelligence has undoubtedly been the technology story since the 2010s, and it doesn’t look like the excitement will wear off as the dawns of a new decade. Artificial intelligence is not here to replace us. It increases our skills and makes us better at what we do. Because AI algorithms learn differently than humans, they take a different look at things. They can see relationships and patterns which flee from us. This human, AI partnership has the potential to offer a lot of possibilities.