Artificial Intelligence (AI) is one of the most popular technologies today, as it promises to offer a number of benefits to both companies and individuals, transforming large amounts of data into knowledge to enable a wide variety of Problems.
Increased spending on Artificial Intelligence and Cognitive Intelligence
According to IDC data, global spending on Cognitive and Artificial Intelligence systems is estimated to reach $57.6 billion by 2021. With many industries around the world investing in cognitive and AI solutions, spending is expected to reach a compound annual growth rate (CAGR) of 50.1% during the 2016-2021 forecast period.
Global spending on cognitive and artificial intelligence systems will reach $12.0 billion in 2017, an increase of 59.1% more than in 2016.
“Artificial and cognitive intelligence solutions continue to proliferate across industries resulting in significant growth opportunities,” said Marianne Daquila, research director at Customer Insights & Analysis at IDC, that IDC he noted precisely that “some of the use cases are very industry-specific, such as healthcare diagnosis and treatment, and in others they are common in multiple industries, such as automated customer service agents.”
Industries that will spend more on cognitive and AI systems
IDC also forecasts that the retail and banking industries will spend more on cognitive and artificial intelligence systems in 2017 with investments of $1.74 billion and $1.72 billion, respectively. It also anticipates that the manufacturing, healthcare and process manufacturing industries will spend more than $1 billion each this year. These five industries will continue to be the highest-spending industries across five-year forecasts, and by 2021, their combined investments will account for nearly 55% of global spending. In addition to spending more on cognitive and artificial intelligence systems, retail will also deliver the fastest spending growth with a 2016-2021 CAGR of 58.8%. The other six industries will see CAGR over 50% during the forecast period. Overall, the cases that will spend the most on cognitive and AI systems in 2017 will be customer service chatbots ($1.5 billion) and diagnostic and treatment systems ($1.1 billion).
Top spending on AI tech groups
In addition, according to IDC data, approximately half of all spending on cognitive and AI technology will go to software, including cognitive applications and cognitive platforms, during the course of the forecast. Although software spending growth is expected to slow somewhat after 2019.
Spending on services will experience steady growth throughout the forecast, achieving a five-year CAGR of 53.7%. The hardware will be the smallest and slowest growing area with respect to spending, despite a solid 40.4%CAGR.
Geographically, the United States will contribute nearly 80% of global spending on cognitive and artificial intelligence systems in 2017 and nearly 75% in 2021. Europe, Middle East and Africa (EMEA) is currently the second largest region, but with stronger spending, Asia-Pacific growth (including a CAGR of 73.6% in Japan) will take you ahead of EMEA by 2021.
80% of companies invest in AI
With this data, it’s no wonder that business leaders looking for higher revenue, more efficiency, and a better experience so their customers can have everything adopt artificial intelligence in their organization.
That’s the promise of AI, in which many companies are starting to actively invest today. The obvious boom in the commercial sector, from self-driving cars to personal assistants, is spreading to the business world.
This disruption is happening right now, and it’s moving very fast. However, the big challenge for businesses is to find the best strategy to create value from current AI investments and recognize and avoid problems along the way.
According to a study by market research firm Vanson Bourne and data analytics provider Teradata many companies are starting to spend a lot of money on AI. However, they are also facing major barriers to adoption.
According to data from the study, 80% of the companies surveyed reported that they were already investing in Artificial Intelligence, although the 42% said there was still room for further implementation in the business. In addition, the 30% still believes that your organization is not investing enough and will need to invest more in AI technologies in the next 36% months to keep up with competitors in your industry.
Businesses expect AI to keep them ahead of the competition in their industry. They are positioning AI so that it can create big profits in almost all of their revenue streams and in all their areas of business practice. On average, the organizations surveyed are currently investing $6.47 million in AI technology. In the Asia-Pacific region, the average investment is even higher, $8.25 million, and they expect an ROI of $1.23 million over the next three years for every dollar invested in AI today, $1.99 million over the next five years and $2.87 million in ROI over the past three years next 10 years.
Barriers to implementation
But just as they see the benefits of AI and are implementing it in their organizations, they also see the possible barriers to their implementation. In fact, according to Teradata’s study, 91% respondents anticipated significant barriers to AI adoption. Among the main barriers identified for the realization of AI projects, respondents highlighted the lack of IT infrastructure (40%), lack of access to talent (34%), AI is too inexperienced and much remains to be improved (33%), lack of budget for implementation (30%), complications around policies, regulations and rights (28) and the impact on customer expectations (23%). However, skepticism is lower in other areas: only the 19th is concerned that AI will make the business not work well, and only the 20% concerns about the impact of Artificial Intelligence and automation on employment and the morale of the Two.
Solutions to those barriers
Companies will overcome these barriers with increased executive-level awareness and an enterprise-wide strategy for aI implementation and use. To help solve these and other challenges, many organizations are creating the figure of a new executive officer, the head of AI (CAIO), to streamline and coordinate the adoption of Artificial Intelligence. About two-thirds (61%) have indicated that they are planning to hire a dedicated CAIO to lead their AI efforts.
Currently, in most cases companies rely on existing technology leaders, such as CIOs (47%) and CTOs (43%), to lead their adoption and AI strategy.
While challenges will arise for businesses as they move to a new AI-driven business strategy, this report believes they will accept those challenges, because the long-term benefits clearly outweigh the short-term challenges.
