According to a new Worldwide Semiannual Cognitive/Artificial Intelligence Systems Spending Guide published by International Data Corporation (IDC), the worldwide revenue from the market for cognitive systems and artificial intelligence will go from $8bn in 2016, to more than $47bn in 2020.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC’s Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective.
In a press release issued by Business Wire, it is revealed that the industry will experience an annual growth rate of 55.1% over the 2016-2020 period. David Schubmehl, research director, Cognitive Systems and Content Analytics at IDC said that software developers and end user organisations have already started the process of implementing and deploying AI into almost every kind of enterprise application or process.
“Recent announcements by several large technology vendors and the booming venture capital market for AI startups illustrate the need for organisations to be planning and undertaking strategies that incorporate these wide-ranging technologies”, Schubmehl said.
“Identifying, understanding, and acting on the use cases, technologies, and growth opportunities for cognitive/AI systems will be a differentiating factor for most enterprises and the digital disruption caused by these technologies will be significant.”
It appears that more and more industries are seeing the advantage of applying AI to recognise and respond to data flows using algorithms, etc. which will essentially enable the work to get done more efficiently, and often more accurately. At the top of the list are the automated customer service agents, quality management investigation and recommendation systems, diagnosis and treatment systems, and fraud analysis and investigation.
It is predicted that the use cases that will experience the most growth in revenue over the coming five years are areas such as public safety and emergency response, pharmaceutical research and discovery, diagnosis and treatment systems, supply and logistics, quality management investigation and recommendation systems, and fleet management.
Jessica Goepfert, program director, Customer Insights and Analysis at IDC said at the press conference that: “Near-term opportunities for cognitive systems are in industries such as banking, securities and investments, and manufacturing. In these segments, we find a wealth of unstructured data, a desire to harness insights from this information, and an openness to innovative technologies. Furthermore, the value proposition of cognitive systems aligns well with industry executives’ chief priorities”.
“For instance, cognitive technologies are being used in the banking industry to detect and combat fraud – consistently a top industry pain point. Meanwhile, in manufacturing, executives cite improving product quality as a top initiative. In this case, cognitive systems recognise and know how to respond to dynamic fluctuations in product specs by adapting the production to stay within quality targets”, Goepfert said.
The industries most likely to invest the most in AI systems in 2016 are banking and retail, healthcare and discrete manufacturing, and combined these will generate for more than half of all 2016’s worldwide AI revenues, where banking and retail will deliver approximately $1.5 billion.
“Healthcare and discrete manufacturing will deliver the greatest revenue growth over the 2016-2020 forecast period, with CAGRs of 69.3% and 61.4%, respectively. Education and process manufacturing will also experience significant growth over the forecast period”, the press release writes.
Adding to this, approximately half of all AI revenue throughout this forecast will go to software, i.e. text and rich media analytics, tagging, searching, machine learning, categorisation, clustering, hypothesis generation, question answering, visualisation, filtering, alerting, and navigation, and cognitive software platforms, facilitating the development of intelligent, advisory, and cognitively enabled solutions. Cognitive applications is deemed the fastest growing category and is predicted to reach $18.2 billion in 2020.
This press release was originally found at: http://www.businesswire.com/news/home/20161026005031/en/Worldwide-Cognitive-Systems-Artificial-Intelligence-Revenues-Forecast