The revenue of organizations working in Artificial Intelligence (AI) space is expected to increase at a rapid pace, and might reach around $3.06 billion by 2024, as per a report by Avendus Capital.
The Avendus report revealed that the AI development will be the highest in the next five years, with deep learning being the fastest to grow within the AI space. Hence, the largest part of revenues will comprise the offerings in deep learning solutions.
“Artificial intelligence revenue projections are on a fast growth axis as they are increasing at a rate of CAGR 40 per cent and are expected to be at a value of USD 3,061 million in 2024,” as published on Economic Times.
The increased demand of robots, and the importance of Robotic Process Automation (RPA), are the key factors behind the rise in investment and merger & acquisitions (M&A) in the AI space. The RPA can easily automate the standardized tasks, and organizations are looking to adopt it for simplifying operational efforts.
“The necessity of automating processes and the need for AI are reasons for the exponential growth in investments attracted by this space in the past few years,” said Puneet Shivam, Head US, Co-head Services Vertical, Avendus Capital. “Today companies are allocating larger budgets to AI for making it an intangible asset to increase customer footprints and market share in India. And this will continue in future as newer and evolved versions of AI are introduced, shaping the dynamics of technology.”
Avendus Capital also reported that Medical & Diagnostics sector will comprise the largest share (21%) of the total AI market. The other sectors who will have a big market share include search (20%), sales and marketing (18%), autonomous vehicles (8%), law (7%), and cybersecurity (6%).
The companies working in the AI space have earned over $11.5 billion in the last 3 years, and it is expected that AI industry will invest venture capital (VC) of over 6 billion this year.
Data Collective, Khosla Ventures, Intel Capital, New Enterprise Associate, Google Ventures & Bloomberg Beta, are some of the most active VC funds in the AI space as of now.