Artificial intelligence (AI) within the consumer, enterprise, government, and defense sectors is migrating from a conceptual “nice to have” to an essential technology driving improvements in quality, efficiency, and speed. According to a new report from Tractica, the top industry sectors where AI is likely to bring major transformation remain those in which there is a clear business case for incorporating AI, rather than pie-in-the-sky use cases that may not generate return on investment for many years.
“The global AI market is entering a new phase in 2020 where the narrative is shifting from asking whether AI is viable to declaring that AI is now a requirement for most enterprises that are trying to compete on a global level,” says principal analyst Keith Kirkpatrick. According to the market intelligence company, AI is likely to thrive in consumer (Internet services), automotive, financial services, telecommunications, and retail industries. Not surprisingly, the consumer sector has demonstrated its ability to capture AI, thanks to the combination of three key factors – large data sets, high-performance hardware and state of the art algorithms. Tractica estimates that many of the top enterprise AI verticals will follow and replicate a strategy similar to the consumer Internet companies. Annual global AI software revenue is forecast to grow from $10.1 billion in 2018 to $126.0 billion by 2025.
Tractica’s report, “Artificial Intelligence Market Forecasts”, provides a quantitative assessment of the market opportunity for AI across the consumer, enterprise, government, and defense sectors. The study includes market sizing, segmentation, and forecasts for 333 AI use cases, including more than 200 unique use cases. Tractica has added use cases spread across multiple industries, including energy, manufacturing, retail, consumer, transportation, public sector, media and entertainment, telecommunications, and financial services. Global market forecasts, segmented by use case, technology, geography, revenue type, and meta category, extend through 2025. An Executive Summary of the report is available for free download on the firm’s website.