American research and advisory firm Gartner released a new report on artificial intelligence-derived business value forecasts from 2017 to 2025 on Wednesday. The firm announced that the AI industry will be worth $1.2 trillion in 2018 and $3.9 trillion by 2022.
"AI promises to be the most disruptive class of technologies during the next 10 years due to advances in computational power, volume, velocity and variety of data, as well as advances in deep neural networks (DNNs)," said John-David Lovelock, research vice president at Gartner. "One of the biggest aggregate sources for AI-enhanced products and services acquired by organizations between 2017 and 2022 will be niche solutions that address one need very well."
For the next few years, the firm expects that the primary source of AI value will come from the realm of customer experience “with the goal of increasing customer growth and retention.” This fact has been supported by other research.
Oracle has estimated that eight out of 10 businesses have already implemented or are planning to adopt AI as a customer service solution by 2020. Previous Gartner research has also predicted that AI bots will power 85% of customer service interactions by 2020.
New revenue possibilities
After 2021, Lovelock says AI will be used to “increase sales of existing products and services, as well as to discover opportunities for new products and services” concluding that "in the long run, the business value of AI will be about new revenue possibilities." This too has been verified by previous data.
Salesforce has stated that, by 2020, 57% of customers will expect companies to know what they need before they ask for it and Forrester has already estimated that, by 2020, AI insights-driven businesses will steal $1.2 trillion per year from less-informed peers. The future of AI will likely be in new business creation and customer retention through advanced prediction capabilities.
The firm also predicted that decision support/augmentation (such as DNNs) will represent 36% of AI-derived business value in 2018 and 44% by 2022, surpassing all other AI sectors. “DNNs allow organizations to perform data mining and pattern recognition across huge datasets not otherwise readily quantified or classified, creating tools that classify complex inputs that then feed traditional programming systems," said Lovelock. "Such capabilities have a huge impact on the ability of organizations to automate decision and interaction processes."
Meanwhile, virtual agents will represent 46% of the AI-derived business value in 2018 and 26% by 2022, decision automation 2% in 2018 and 16% by 2022, and smart products 18% in 2018 and 14% by 2022. The report, entitled "Forecast: The Business Value of Artificial Intelligence, Worldwide, 2017-2025," is part of the Gartner series: "The Future of Work and Talent: Culture, Diversity, Technology" and "Deliver Artificial Intelligence Business Value."