Currently, the Artificial Intelligence market total revenue is valued at 3.5 billion dollars which and it is predicted to reach $26.4 billion dollars by 2023 with an increase in CAGR of approximately 40 percent. Some of the most common technologies that are contributing to the growth of the Artificial Intelligence (AI) market are Machine learning (MI), Natural Language Processing (NLP), Predictive Analysis, Robotics and Image Recognition.
With the increase in automation of various tasks, AI could eliminate around 2 million jobs in the next 5-7 years and more than 3 million jobs by 2030. It is predicted that everyone person out of five will use AI technology to complete their work.
What is AI?
AI is the intelligence that is demonstrated by machines therefore, AI is also known as Machine intelligence. AI is a system that can interpret any external data, learn from such data and can use the learning to complete tasks and goals. The major goal of AI is to implement the intelligence of humans in machines by developing such systems that can think, understand, learn and behave in a manner similar to humans.
Use of AI in various sectors
AI is being used in various industries and offers a lot of promise for the future. Some of the most popular applications of AI in present times include:
- Various games are using AI technology to make the games more realistic and engaging. Games like poker, chess, tic-tac, etc are now using AI.
- NLP is used to interact with a machine such as a computer in a natural language spoken by humans. The systems that can comprehend speech and language and then talk to a person in the same language are also widely gaining popularity. The system is also capable of understanding accents, noise in the background, slang words etc. Its application can be seen in virtual assistants like Alexa and Siri.
- The vision systems that are capable of interpreting and comprehending visual inputs or photographs on the computer screen are also being used for various practical requirements. Doctors are using this technology to diagnose patients while crime investigators are using it for face recognition of criminals.
- Software that can recognize handwriting with the help of AI and then can write in the editable text has been used in solving many cases by law enforcement agencies.
- Robots have been incorporated with processors, memory, and sensors that exhibit intelligence. They are also able to learn from mistakes and can adapt to environmental needs.
Market size and analysis
Technologies such as ML, NLP, Predictive Analysis and image recognition have a large share in the AI market. At present, North America has the largest share of revenue generated from the AI market which is more than 40 percent. This is due to the fact that companies in North America are adopting AI in large numbers. After North America, Europe has the second largest share of revenue generated from the AI market.
In the next 5-7 years, the Asia Pacific region is predicted to be the most lucrative market for Artificial Intelligence. This is due to the fact that this region is emerging as a hub for startups working on innovative ideas. Many startups here are already providing AI-based products and several other startups are working on the development of new products and services related to AI such as chatbots and virtual assistants.
Many countries such as the U.S., China, Germany, India, and Japan have seen growth in the AI market because of the rising trend of automation in many industries. Many new companies in these regions are coming up with innovative service offerings across various industries such as BFSI, healthcare, gaming, agriculture and many more.
Growth depending on sectors and regions
North America already has the largest share of the AI market and the market is predicted to grow considerably till 2022. The segments that contributed to the largest share of the AI market are government and defense sectors and they would continue to be a dominant market for AI for the next few years.
With a large number of startups and tech giants such as Amazon, Google, Intel, Microsoft, Apple, IBM, etc, the AI market will continue to grow to a rapid pace in the U.S. The market for AI in the North American region would undergo consolidation in the upcoming years. This consolidation would be driven by increasing adaptability of AI and AI-based products across new industries.
The increasing trend of using AI for video surveillance, video analysis, and cybersecurity solutions, will continue to boost the AI market in the U.S. in the coming years. Governments across the world will also be using AI for improving their core functions across various domains such as defense, finance, technology, transportation etc. This translates into increased spending by government departments for the next few years, giving a tremendous boost to the growth prospects of the AI industry.
Guest contribution by Ethan Scott – he started his career in the publishing industry at a very young age. It was 2014 until Ethan realized that he needed to explore the terrains of writing and seek his passion for it. He worked, partnered and contributed to 20+ websites and blogs and constantly thrived by working on them.
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