“Worldwide spending on AI will reach $98 billion in 2023 with an annual growth rate of approx. 30% between 2018-2023 – IDC.”
Artificial Intelligence has undoubtedly revolutionized the way firms work. Often considered as the cause of the fourth industrial revolution, AI has been the stronghold of many key industries in the 2010s and will continue to pervade work, home, and even leisure for many years to come. It is crucial to understand how phenomenal the growth of AI will be in order to gear up for the future.
Worldwide AI Market Size and Growth
According to recent research by Statista, more than 50% of the firms worldwide claimed to have already adopted intelligent automation technologies in their organizations. While the growth has been highest in marketing and sales, AI and machine learning have also created value across other sectors including manufacturing and supply chain.
Tractica predicts that the worldwide AI market will reach $125 billion in 2025. Overall spending on cognitive and AI systems will amount to $78 billion in 2022, a growth of more than 200% from 2018.
In fact, in the current scenario and at the wake of the unexpected COVID19 health emergency, AI adoption is experiencing a surge like never before. Globally, the AI market is expected to grow to $40 billion only in 2020 at a significantly higher growth rate of 43%.
Predicted Workforce Changes from AI Adoption
While it is amply clear that the adoption of AI significantly impacts a firm’s bottom line and its ability to stay competitive, the effect of AI on the workforce is still quite uncertain. Nonetheless, early indicators suggest that AI could usher in an age of collaboration between machines and humans.
For example, organizations that have implemented AI are already seeing a reduction in actionable events and an increase in workflow efficiency. AI frees up employees to be more creative apart from helping them make smarter decisions.
Thus, with the right reskilling companies could be looking at a collaborative future between AI and human beings. That said, the effect could vary across industries with high-tech and infrastructure experiencing a more positive impact than automotive and telecom.
AI and Sustainability
1. AI’s Impact on GDP
A recent study suggests that AI will potentially contribute more than $15 trillion to the global economy by 2030. A good part of it will come from product and service innovations and increased variety all thanks to AI-induced personalization and affordability.
While there is a growing fear that AI will cause job losses, more recent reports suggest that AI will also create new hybrid roles such as those of data scientists and machine learning specialists. Therefore, with the right training programs, employees will be able to achieve more when equipped with AI capabilities.
2. AI’s Impact on Companies
Companies will be the first to benefit from AI implementation. From informed decision making to streamlined supply chains, improved customer relations, and better cybersecurity, AI adoption will be a win-win situation for firms across the globe.
The AI revolution is all set to transform how the world operates. It will not only have profound implications on organizational processes but also significantly change business strategies. The collective intelligence of people and machines learning will solve problems and change perceptions. Needless to say, firms that jump on the AI bandwagon sooner will outperform their competitors easily and reap greater benefits.