According to the recently released Gartner report, the AI market is projected to hit $1.2 trillion in value this year driven by several factors. This is an indication that AI adoption is going to be increasingly widespread and it’s changing the way businesses operate.
This article will examine what Gartner is saying and what it could mean for business.
AI technologies offer increased efficiency, improved decision-making capabilities, and optimized business processes across myriad industry sectors like finance, healthcare, retail, manufacturing, transportation etc.
Overview of Enterprise AI Market
The enterprise’s artificial intelligence (AI) market is experiencing remarkable growth. According to a new Gartner report, the global enterprise AI market will reach $1.2 trillion by 2021. Industry experts have attributed this growth trend to the expanding range of AI applications across various industries and its potential to automate specific business tasks and transform customer experiences.
AI technologies offer increased efficiency, improved decision-making capabilities, and optimized business processes across myriad industry sectors like finance, healthcare, retail, manufacturing, transportation etc. In addition, by deploying AI into their businesses, enterprises can gain valuable insights from data to improve customer satisfaction and maximize return on investment.
An increasing number of companies are now moving beyond offering basic analytical services and exploring more advanced applications such as natural language processing (NLP), computer vision (CV), machine learning (ML) etc., which are made possible through advanced technologies such as cloud computing platforms. By incorporating these cutting-edge technologies into their operations, enterprises can drive innovation while boosting their competitive advantage in the marketplace.
In addition to researching how AI-driven innovations shape the enterprise landscape today and in the future, organizations can also look towards investing in promising startups developing groundbreaking solutions for businesses of all sizes.
Gartner’s Prediction
Gartner, a leading technology research and advisory firm, has predicted that the global enterprise AI market will reach $1.2 trillion in 2021. This prediction is based on the dramatic acceleration of the AI adoption rate for businesses. As more companies realize the potential of AI to solve some of their biggest challenges, the demand for AI technologies is expected to skyrocket this year.
Let’s take a closer look at Gartner’s prediction.
Gartner, a leading technology research and advisory firm, has predicted that the global enterprise AI market will reach $1.2 trillion in 2021.
Analysis of Gartner’s Prediction
According to Gartner, the enterprise AI technology and services market that supports artificial intelligence (AI) applications is estimated to reach $1.2 trillion by the end of this year. This figure marks an increase of over 25 percent from 2020 and confirms Gartner’s prediction that AI is becoming more broadly available to enterprises of all sizes through cloud-based services, product launches from chipmakers, and advancements in natural language processing (NLP).
This surge in market activity has been driven by several factors, including increased availability of cloud-based AI services and lower cost of ownership for enterprise applications that leverage AI capabilities. In addition, more sophisticated NLP platforms are being deployed across enterprise use cases, ranging from customer service automation to financial risk mitigation. Moreover, enterprise IT teams can outsource development costs for more complex projects to external specialists now as more organizations offer expertise as a service.
Furthermore, the rapid advancement in hardware advancements such as graph processing chips have further enabled the deployment of application specific AI workloads across X86 or GPU based servers or specialized algorithm machines such as Google’s TPU or Intel’s Nervana cores at faster speeds than before.
Overall, Gartner’s prediction shows us that the global AI landscape is quickly evolving and growth opportunities will be across industries and applications in 2021. This growth’s effects on organizations must be carefully monitored to ensure effective implementation of artificial intelligence capabilities.
Impact of Gartner’s Prediction
Gartner’s prediction that the enterprise AI market would hit $1.2 trillion this year represents a sizable opportunity for companies to leverage the power of artificial intelligence (AI). Many are already taking steps to do so. AI enables businesses to automate repetitive tasks, improve efficiency, and quickly make decisions based on data-driven insights.
The Gartner prediction also has implications on the job market as there will be a surge in demand for trained professionals who can develop and manage AI solutions to optimize business operations. As a result, companies have already begun shifting their focus to recruit AI-savvy personnel with the skill sets required to deploy sophisticated technology solutions into their operations.
Organizations could use Gartner’s predictions to assess whether critical areas of their operation can be improved using AI tools or if they would benefit from advanced analytics and new technologies like machine learning and natural-language processing (NLP). This will ensure that businesses can maximize value from their investments in data science and technology infrastructure, while staying ahead of the competition in terms of maximizing operational efficiency.
Market Drivers
Gartner predicts that the global enterprise AI market will reach $1.2 trillion in 2020, representing a dramatic increase from previous years. This growth is driven by various factors, such as an increased focus on automation and the desire for organizations to leverage AI for cost savings and improved customer experiences.
Let’s dive into the market drivers behind this explosive growth.
Increasing Demand for AI-Enabled Solutions
The increasing demand for AI-enabled solutions has become one of the key drivers of the global enterprise AI market. Global businesses increasingly use AI-driven solutions such as natural language processing, computer vision, and machine learning technologies to solve complex problems and gain competitive advantage. Additionally, with increasing focus on automation across business functions, organizations are leveraging leading-edge AI technologies including reinforcement learning, deep learning algorithms and robot process automation (RPA).
Furthermore, rising demand for cloud-based enterprise AI platforms drives the market’s growth. Moreover, technological advancements in voice assistants that offer a range of functionalities ranging from sophisticated natural language understanding to simple predictive analytics are likely to create more opportunities for enterprises to adopt such capabilities.
Companies increasingly utilize AI solutions to gain competitive advantages, reduce costs, automate processes, and create products and services tailored to their customers’ needs.
In addition, increased investment in startups adopting new innovative technological breakthroughs that utilize artificial intelligence drives growth across various industry verticals including health care, retail and banking & financial services. According to Gartner’s forecast report on Enterprise Artificial Intelligence (AI), investments in enterprise Artificial Intelligence (AI) will grow from $675B in 2019 to $1.2T by 2024. Furthermore, a surge in data usage among businesses due to proliferation of Internet of Things (IoT) devices is contributing significantly towards the increase in market size for enterprise AI platforms offering advanced predictive analytics capabilities.
Growing Adoption of AI-Enabled Products
The increasing demand for AI-enabled products and services has been a tremendous driver behind the growth of the AI market. Companies increasingly utilize AI solutions to gain competitive advantages, reduce costs, automate processes, and create products and services tailored to their customers’ needs. Furthermore, technological advancements have made it easier and more affordable for companies to implement new AI solutions.
The growing adoption of software platforms such as artificial intelligence (AI), natural language processing (NLP), machine learning (ML), deep learning (DL) and computer vision is driving the growth of the AI market. Such platforms enable companies to transform their operations by providing intelligent insights from data that can be used to develop new products or improve existing ones. Additionally, these technologies allow businesses to automate processes using robots or virtual agents for customer service, marketing activities or production operations.
In addition, a growing number of companies are utilizing cloud-based technologies such as Amazon’s AWS ML services or Google Cloud offerings, making it easier for businesses to get started with AI projects quickly and cost-effectively. Finally, companies are increasing investments into innovative products such as self-driving cars powered by autonomous driving AI systems which is helping to accelerate adoption of enterprise AI solutions across the globe.
Challenges
With new technologies disrupting the business world, like AI and robotics, enterprises are beginning to adopt them rapidly. However, various challenges come with this transition. From the lack of talent, to the risk of privacy, to the ethical concerns around these algorithms, there are various issues that businesses will have to account for.
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