Artificial Intelligence (AI) has become a vital component in IT industry and the future of IT landscape. AI technology had seemed like something straight out of science fiction but in today’s world we are using AI in all the walk of life be it facial recognition or speech recognition or automation.
AI and related technologies have had a positive impact on the way the IT sector works. To put it simply, artificial intelligence is a branch of computer science that looks to turning computers into intelligent machines that would, otherwise, not be possible without direct human intervention. By making use of computer-based training and advanced algorithms, AI and machine learning can be used to create systems capable of mimicking human behaviours.
Worldwide revenues for the artificial intelligence (AI) market, including software, hardware, and services, are forecast to grow 16.4% year over year in 2021 to $327.5 billion, according to the latest release of the International Data Corporation (IDC) Worldwide Semi-annual Artificial Intelligence Tracker. By 2024, the market is expected to break the $500 billion mark with a five-year compound annual growth rate (CAGR) of 17.5% and total revenues reaching an impressive $554.3 billion.
Among the three technology categories, software represented 88% of the total AI market revenues in 2020. However, it is the slowest growing category with a five-year CAGR of 17.3%. Within the AI software category, AI Applications took the largest share of revenue at 50% in 2020. In terms of growth, the AI Software Platforms market is forecast to be the strongest with a five-year CAGR of 32.7%. The slowest will be AI System Infrastructure Software with a five-year CAGR of 13.7% while accounting for roughly 36% of AI software revenues. Within the AI Applications market, AI ERM is expected to grow slightly stronger than AI CRM over the next five years.
Some key areas where AI has changed the landscape:
The contribution of the technology giants like Microsoft, Google, Apple and IBM in the healthcare sector holds significant importance for the industry. AI is currently being applied for a wide range of healthcare services, including data mining for identifying patterns and then carrying out the more accurate diagnosis and treatment of medical conditions, medical imaging, medication management, drug discovery and robotic surgery.The contribution of the technology giants like Microsoft, Google, Apple and IBM in the healthcare sector holds significant importance for the industry. AI is currently being applied for a wide range of healthcare services, including data mining for identifying patterns and then carrying out the more accurate diagnosis and treatment of medical conditions, medical imaging, medication management, drug discovery and robotic surgery.
Retail and E-commerce is perhaps the only space where the application of AI is the most observable to the majority of end-users. Being a competitive space, retail organizations always look out for techniques to find patterns in consumer behavior and thereby align their strategy to outsmart their competitors.
The Banking and Financial Services industry is undergoing a massive transformation due to the onset of AI applications. AI uses cases in this space are plenty. In many scenarios, human agents are being replaced by intelligent software robots for processing loan applications in fractions of a second. Similarly, Robo-financial advisors are sifting through multiple levels of data in split seconds to recommend the right investment decisions for customers.
Thus we see that Artificial Intelligence (AI) is no longer an emerging technology segment – AI as a function has pervaded almost all industries and functions – from eCommerce to BFSI and from Manufacturing to Agriculture – Data Science and Deep Learning are increasingly utilised to solve complex business challenges.
