August 22, 2018
The artificial intelligence (AI) market is entering a dynamic phase of growth, says market intelligence firm Tractica, where adoption in the enterprise sector continues unabated, but there are questions emerging within research and academic circles about whether the technologies fueling the AI revolution, particularly deep learning, might be hitting a bottleneck.
The recent controversy surrounding Facebook and data privacy, AI safety and explainability with Uber’s self-driving car fatality, or questions about authenticity and the power of generative algorithms to create fake images and video, are all issues that highlight the challenges facing AI in 2018, it says.
Despite these challenges, according to a new report from Tractica, the commercial outlook for AI has never been stronger. It forecasts that global revenue from AI software implementations will increase from $8.1 billion in 2018 to $105.8 billion by 2025. This forecast represents a significant upgrade of Tractica’s previous projections, last published at the end of 2017, owing to the addition of new real-world use cases across multiple industries, as well as increased guidance for key use cases in several sectors.
Tractica forecasts that the top 10 industries in terms of AI adoption and spending between 2018 and 2025 will include telecommunications, consumer, advertising, business services, healthcare, retail, automotive, legal, public sector and insurance.
“The types of challenges currently faced by the AI sector are to be expected as we move from a hype phase into a reality phase as part of the cycle of market development,” says research director Aditya Kaul. “Tractica sees these challenges as part of the maturity curve for AI, where the next few years will see a sobering of expectations, while the momentum around use cases and applications continues to build.”
Tractica’s report, “Artificial Intelligence Market Forecasts”, provides a quantitative assessment of the market opportunity for AI across the consumer, enterprise, and government sectors.
The report includes market sizing, segmentation, and forecasts for 294 AI use cases distributed across 30 industries, and 165 unique use cases. The market forecasts span the period from 2017 through 2025 and include segmentation by the six fundamental AI technologies: machine learning, deep learning, computer vision, natural language processing, machine reasoning, and strong AI.
Revenue forecasts are further segmented by software, hardware, and services, in addition to segmentation by world region. An executive summary of the report is available for free download on the firm’s website.