The revenue of global artificial intelligence industry will touch $1.2 trillion by the end of this year, up 70% from a year before, as per the leading analyst firm Gartner.
Gartner further forecasted in a report that AI-derived business value might will reach $3.9 trillion by 2022.
AI-derived business value will be majorly driven by three sources including customer experience, new revenue, and cost reduction in producing and delivering the new and existing AI products and services.
The customer experience solutions will increase the adoption of AI technology. Gartner said that the new revenue will significantly drive the business value of AI implementation by increasing sales of existing products, as well as creating the new solutions.
“In the early years of AI, customer experience (CX) is the primary source of derived business value, as organizations see value in using AI techniques to improve every customer interaction, with the goal of increasing customer growth and retention. CX is followed closely by cost reduction, as organizations look for ways to use AI to increase process efficiency to improve decision making and automate more tasks,” said Mr. Lovelock. “However, in 2021, new revenue will become the dominant source, as companies uncover business value in using AI to increase sales of existing products and services, as well as to discover opportunities for new products and services. Thus, in the long run, the business value of AI will be about new revenue possibilities.”
Gartner predicted that the growth rate of AI market will rapidly grow but it will slow down as the technology establishes itself. It can be observed from the table that the growth curve is expected to flatten after 2020.
The virtual agents and smart products will account for around 46% and 18%, respectively, of the AI-derived business value in 2018. However, the share of these initiatives will decline in 2022, accounting for only 26% and 14%, respectively.
The expected reason behind decline in business value of virtual agents and smart products will be the maturity of other AI initiatives like decision automation systems and decision support/augmentation.
The decision automation systems currently account for only 2% of the AI-derived business, but will increase to 16% by 2022. On the other hand, the decision support/augmentation will account for 36% of global AI market in 2018, and rise to 44% in 2022.
Smart products, which currently accounts for 18% of global AI market, will shrink to 14% by 2022.
“AI promises to be the most disruptive class of technologies during the next 10 years due to advances in computational power, volume, velocity and variety of data, as well as advances in deep neural networks (DNNs),” said John-David Lovelock, research vice president at Gartner. “One of the biggest aggregate sources for AI-enhanced products and services acquired by enterprises between 2017 and 2022 will be niche solutions that address one need very well. Business executives will drive investment in these products, sourced from thousands of narrowly focused, specialist suppliers with specific AI-enhanced applications.”