One of the most exciting aspects of the AI inflection is the enormous amount
of real-world applications. AI has applications and use cases in almost every
industry vertical. Where large data sets are combined with powerful enough
technology, value is being created and competitive advantage is being gained.
For the early-adopting companies, AI is already starting to deliver benefits. For
example, retailers on the digital front rely on AI-powered robots to run their
warehouses – and even to automatically order stock when inventory runs low.
Utility companies use AI to forecast electricity demand. Automakers harness
the technology in self-driving cars. On a consumer level, AI is making our
smart devices smarter. The most recent example is Apple's facial recognition
technology launched with the iPhone X, which turns our faces into a secure,
private and fun new way to interact with our devices.
All over, AI technologies are empowering people in their daily lives across
work, leisure, and even domestic tasks. Among the many factors driving the
adoption of AI are: (i) increased cost savings and productivity, (ii) improved
quality of life, and (iii) avoidance of work and tasks deemed dangerous, dull or
unpleasant. The long-term prospect for AI is that it will become embedded in
many different other technologies and provide autonomous decision making on
behalf of humans, both directly, and indirectly through many processes, products,
and services.
Market
The overall AI market was valued at $8 billion in 2016 and is expected
to grow at a 55% CAGR (compound annual growth rate), reaching $47 billion
in 2020.
24
IDC estimates that half of this amount will go towards software
applications. Considerable improvements in commercial prospects of AI
24
"Worldwide Cognitive Systems and Artificial Intelligence Revenues Forecast to Surge Past $47 Billion
in 2020, According to New IDC Spending Guide." IDC, 26 Oct. 2016,
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