Morgan Stanley’s analysts Katy Huberty, Brian Nowak and Keith Weiss have recently written a very interesting piece for their company’s research report “Key Investor Debates Likely to Drive Stocks in the Coming Year”. The analysts focus on AI and ML, asking whether ML will reach a turning point in 2017, or if this belongs to the far future.  

Huberty, Nowak and Weiss explains that the Morgan Stanley report estimates that already half of chief information officers (CIO’s), are currently using AI, or planning on making use of AI or ML. However, Michelle Jones, writer for ValueWalk believes that this statement is made in line with where adoption of the public cloud stood, two years ago.

However, Jones mentions that CIO’s don’t list AI as one of their top priorities yet, and as a result to this, they expect that the total spend in the AI-area of technology, will be rather low. So what could boost artificial intelligence spending?

The Morgan Stanley report says that they strongly believe that factors such as acquisitions have the potential of increasing the spending on AI and ML-technologies, referring to Microsoft’s acquisition of LinkedIn, IBM’s purchase of The Weather Company, and other deals with the potential of boosting the value of proposition of AI platforms.

The report further acknowledges that the awareness of AI through digital assistants such as Amazon Echo, Google Chrome and Apple’s Siri, is increasing with the consumers, and this interest is predicted to gradually transfer over to enterprises.

Morgan Stanley also deem this year as a year of investigation into AI use cases, which has resulted in a range of deals moving forward into the new year. ValueWalk mentions deals like IBM’s relationship with Pfizer and Amazon’s Amazon Go.

Huberty and her colleagues declares that to them, the winners in artificial intelligence is platforms, deeming Amazon, IBM and Microsoft as the early, but unappreciated leaders in this area, with a market share of 20% to 30%.

The report also ensures that it distinguishes AI platforms from AI functions internally in applications, which they now deem as standard, rather than a differentiator for providers. “Because of this, they believe Workday, Adobe Systems, and other companies that provide artificial intelligence features within existing solutions as having less value”, ValueWalk writes.

According to the report, the total addressable market of AI and ML is at $2trillion, due to the belief that these technologies provide companies with 80% of data that would otherwise be inaccessible.

They also refer to data as “the holy grail of AI”, as they believe algorithms will one day be related to commodity status.

This article was first published at: http://www.valuewalk.com/2016/12/leaders-artificial-intelligence-2017-microsoft-amazon-ibm/

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