AI To Bring More Jobs, Revenues To Businesses

by CXOtoday News Desk    Nov 27, 2017

artificial intelligence

Artificial Intelligence (AI) is expected to increase organization’s revenue at a fast pace. The revenue of companies working in the AI space is expected to touch the revenue of $3.06 billion by 2024, according to a report by Avendus Capital.

According to the report, the next five years are going to be crucial for the AI development. The advancements in the technology in next few years will lay the foundation for the companies dealing in AI-based technologies. Among all the AI technologies, Deep Learning is expected to have the fastest growth. The large portion of revenues of AI companies will come from companies offering in Deep Learning solutions.

“Artificial intelligence revenue projections are on a fast growth axis as they are increasing at a rate of CAGR 40 percent and are expected to be at a value of USD 3,061 million in 2024,” PTI reported as published on ET.

AI industry has received more than $11.5 billion in the last three years. Over 6 billion of VC investments are expected to happen in AI this year. The projected revenue share by Medical & Diagnostics sector is expected to have 21% of total AI market’s share. The search is another sector which will have a big market share of AI. Sales and marketing, autonomous vehicle, cybersecurity and law will have a higher impact on AI, the report mentioned.

The industry is now teeming with VC funds in this space. Some of the names are Data Collective, Khosla Ventures, Intel Capital, Google Ventures, Bloomberg Beta and New Enterprise Associates. The report also focused on the growing importance of Robotic Process Automation (RPA) in AI industry that uses computer software to process and automate routine tasks.

The growth of Robotics is going to impact the services across different markets worldwide. The standardized tasks can easily be automated with RPA. Going forward, organizations will adopt RPA to simplify the operational efforts.

At the same time, a recent Gartner report forecasts that AI will lead to $200 billion in new revenue and 768,000 new positions in 2018. While in most cases, savings and efficiencies resulting from the use of AI will improve productivity, 943,000 jobs will be eliminated in the same year.

“However, there will be a transition period through to 2020, when AI will create 2.3 million jobs and eliminate only 1.8 million jobs,” said Helen Poitevin, research director at Gartner. Moderately skilled occupations, for which training is received “on the job,” will bear the brunt of the job losses. AI will, however, create millions of new highly skilled positions, managerial positions, and even entry-level and low-skilled positions.

Already, chatbots point to likely developments. To succeed with AI, Businesses and CIOs need to influence its long-term direction. To do that, they should consider three issues in turn: how AI could augment their company’s existing services; how they could change their company’s existing services to suit AI; and what new services they could create that would be impossible without AI, said the Gartner report.