Blog: Artificial Intelligence Market to Reach $26.4 Billion by 2023 – I-Connect007
Artificial Intelligence Market to Reach $26.4 Billion by 2023
The global artificial intelligence (AI) market is expected to grow at a compound annual growth rate (CAGR) of 40% until 2023, according to Beroe Inc. Beroe further estimates that within the next five to seven years, artificial intelligence may replace nearly 50% of unskilled labor across the globe, and one in every five workers will utilize AI in their workflows by 2022.
“Global demand for artificial intelligence is increasing at a breakneck pace,” said Sridevi Akkarajuvenkata, Customer Success Lead at Beroe Inc. “Perhaps the biggest takeaway from our research is the profound impact of AI on the global employment landscape, with automation on track to create more than three million jobs by 2030. As new cloud-based platforms and AI startups enter the industry every day, key AI technologies such as Machine Learning and Natural Language Processing are evolving rapidly, increasing the capabilities of AI across a range of industries.”
Due to the growth of cloud-based services and the emergence of AI technology startups, countries with a high level of process automation, including the US, China, India, Germany, and Japan, are leading markets for AI. With strong investment by the government and defense sectors, AI technology is forecasted to boost global GDP by $16 trillion by 2030, with North America and China set to be the key markets driving that growth.
The North American and Asia-Pacific (APAC) regions are poised for rapid growth over the next two to three years, which will solidify their global dominance in AI. North America’s AI market, currently the most mature, is on track to grow at a CAGR of nearly 41% until 2022, with the growing trend of AI surveillance video analysis and increased government funding for cybersecurity solutions representing two key factors in the market’s continued growth. The APAC market, already valued at $1 billion, is set to emerge as a lucrative market over the next five to seven years, growing at a CAGR of 46%.
“Both startups and multinational tech companies are harnessing AI’s potential to transform business processes with advanced technology, precision, and time-saving methodologies,” said Sridevi. “Over the next decade, every single industry will be impacted by AI technology – this presents a tremendous opportunity. By augmenting human capabilities in research and development, intelligence and analytics, and optimized production and maintenance, AI has the potential to transform humanity’s relationship to work for the better.”
Facilitating this market’s ascension is active investment by Tier-1 suppliers and venture capitalists in AI startups, creating a competitive environment that is driving daily innovative breakthroughs. However, the AI market still has to address the difficulty of adoption of AI by the human workforce – while AI can be integrated into existing workflows quickly, many employees find it difficult to adapt to the new technology, slowing its implementation.
The methodology adopted for this research follows Beroe’s unique 3C approach: data confidence, data coverage, and data credibility. Powering its 3C approach are experts with 20 years of domain experience, comprehensive interaction with buyers, and in-depth inputs from supply chain partners.
About Beroe Inc.
Beroe is the world’s leading provider of procurement intelligence and supplier compliance solutions. We provide critical market information and analysis that enables companies to make smart sourcing decisions—leading to lower costs, greater profits and reduced risk. Beroe has been providing these services for more than 13 years and currently works with more than 10,000 companies worldwide, including 400 of the Fortune 500 companies.