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AI Predictions Swiftly Becoming Reality

| AI + T |

Artificial intelligence (AI) technologies are already exploding in many industries and across our daily lives, from autonomous cars to smart-home speakers; and the AI market is expected to undergo rapid growth, expanding from about $4 billion in 2016 to $169 billion in 2025. The potential for this tech which includes everything from machine-learning microchips to smart assistants and smart speakers hasn't yet been realized. Yet, a handful of companies are already making strategic moves.

Below are some of the best predictions for the artificial intelligence market that might convince anyone that AI is worth keeping an eye on:

AI Won't Just Change Businesses, It Will Transform The Global Economy.

A PwC report estimates that artificial intelligence technologies will add $15.7 trillion to the global economy by 2030. China's economy is expected to gain the biggest benefit from AI, with an increase of 26% to its gross domestic product in 2030 while the U.S. could see a 14.5% increase to its GDP that year from AI.

Autonomous Vehicles Made Possible By AI

IHS Markit predicts that a crucial year for AI will be in 2021, when the number of

autonomous vehicles sold annually is expected to reach around 51,000. Nonetheless the

number is predicted to rise steeply to 33 million autonomous vehicles sold worldwide in

2040, representing 26% of all vehicles sold that year.

NVIDIA's self-driving computer (Drive PX Pegasus) is already helping to make these

vehicles a reality by allowing cars to process visual information to understand what's

happening around them. NVIDIA believes its market potential in autonomous vehicles will

be $60 billion by 2030. Likewise, Alphabet's Waymo is using AI to power its self-driving

vehicles and is already leading among automakers and tech companies. On Wednesday October 10th, the company has completed 10 million miles of real-world autonomous-vehicle tests, and it's building partnerships with traditional car makers like Fiat Chrysler and Jaguar. Morgan Stanley believes Waymo's self-driving taxi service could eventually be worth $175 billion.

AI Could Be A Job Creator, Not A Job Killer

There's still a lot of debate about whether AI will take away more jobs than it brings, but some of the latest data estimates that by 2020 AI will create 2.3 million jobs, while

eliminating 1.8 million of them, therefore resulting in a net gain in jobs. The number of AI created jobs is expected to continue growing through at least 2025. Moreover, AI is being used to help make some individuals better at their professions, instead of leaving them without one. For instance, Harvard pathologists used AI to help diagnose breast cancer and found that their accuracy in diagnosing patients increased from 96% without AI to 99.5% when using AI.

AI Will Continue To Transform Homes

One of the most creative uses of AI can be found in the smart speakers that nearly one

quarter of Americans have in their homes. Amazon’s Echo and Google Home speaker are the two most popular smart speakers on the market, and both are powered by voice recognition AI systems (Google Assistant and Alexa, respectively) that field users' questions about the daily schedules, products, sports scores, weather etc.

It is becoming increasingly clear that tech companies look to these AI assistants to create new sources of revenue. For instance, Amazon's Echo speakers allow people to easily buy products from its website through voice commands, and recent data shows that Amazon Prime members spend $400 more on the company's site if they own an Echo speaker than members who don't have one. Amazon could add $10 billion to its top line by 2020 thanks to the company's sales through its smart speakers, according to RBC Capital Market predictions.

Alphabet's Google could benefit from its assistant in a different way. By using voice searches made through a Google Home device to collect more information on what its users are looking for online, Google will be able to sell more targeted ads to them. Google's U.S. digital ad business is expected to reach $39.92 billion this year and getting even more search information from its users will only help the company improve the ads it sells.

AI Will Become Gradually Important To How Businesses Function And Generate Revenue

Amazon CEO Jeff Bezos in his note to investors last year said this about machine learning: "Machine learning drives our algorithms for demand forecasting, product search ranking, product and deals recommendations, merchandising placements, fraud detection, translations, and much more. Though less visible, much of the impact of machine learning will be of this type, quietly but meaningfully improving core operations."

Bezos' quote, and the use of AI in his e-commerce company, is a perfect example of how companies outside the tech world will benefit from artificial intelligence. According to Gartner, AI algorithms and tech are expected to bring $3.9 trillion in global business value through better user experiences, new revenue streams and cost reductions by 2022.

Artificial intelligence has already become a major part in some of the biggest and most ground-breaking companies in the world. It's significant to take note on how Amazon, Google and NVIDIA are already benefiting from AI and how the technology will continue to change their businesses in the years to come.

Regardless whether some realize it or not, AI will be a driving force in how companies enhance their advertising, develop and market new products, and increase overall business efficiency. Hence, it is an ideal time to start understanding how AI works and how companies will benefit from it.

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