The global artificial intelligence (AI) market is likely to exhibit a CAGR of 33.1% between 2019 and 2026 with a steep rise in the adoption of cloud services, according to a new report by Fortune Business Insights.
This would translate in an increase of the AI market value, which amounted to USD 20.67 Billion in 2018, to reach USD 202.57 Billion by the end of 2026.
The report is titled “Artificial Intelligence (AI) Market Size, Share and Industry Analysis By Component, By Technology, By Industry and Regional Forecast, 2019 – 2026”, and it was published earlier this month.
According to the new data, one of the main reasons behind the forecast expansion of the artificial intelligence market would be related to increasing demand for cloud services.
Integrating Supply Chain Data
This trend would be primarily connected to the fact that artificial intelligence can provide a “perfect mix of technologies to replicate human behavior’s”, thus enabling seamless integration supply chain data.
An example of such applications was showcased by IBM last month. The tech giant launched an AI-powered blockchain-based supply chain service with Internet of Things (IoT) integration.
The new software is connected to IBM’s Sterling Order Management System service and is able to show real-time views of order shipments, alerts and optimization recommendations.
Another reason behind the growth of AI in cloud applications would be related to the increased efficiency in creating and delivering products to customers.
Traditional Robotic Process Automation (RPA) technology is limited to basic screen automation, the time-consuming task of manually extracting information from one application, validating it and then pasting it in another application.
It worked for a time, but this technology is not scalable and fails to utilize the full potential of AI. To integrate machine learning applications, current RPA vendors rely on manual and time-intensive custom coding, which is based on elements of versioning, governance and deployment.
Just last week, however, the intelligent automation startup Automation Hero has released a new version of its AI Studio that natively embeds the capabilities of AI into an end-to-end, scalable and web-based platform managing intelligent automation work for more complex business processes.
Data and the Internet of Things
Finally, the report mentions how the Internet of Things itself and the increased used of connected devices will also propel the growth of the artificial intelligence market.
IoT devices generate a large amount of data. Take the necessary data for a self-driving vehicle to scan the road in front of it for example, or a smart security device constantly recording and analyzing high-quality footage.
All this data needs to be analysed and made sense of, and artificial intelligence excels at exactly that. AI and machine learning can be used to efficiently analyse and track this data, allowing people to make sense of it.
Because of this close link, it is not surprising to think that IoT devices incorporating AI cloud help to create new markets, business models, and disrupt the overall market landscape.
Businesses should make the most of these opportunities to impact their revenue and customer experience positively.
What do you think of these predictions? And does your business use AI-powered cloud tools?