If 2017 was “The Year of AI,” 2018 will be “The Year AI Cashes In.” Leading research and advisory company, Gartner, forecasts show economic growth over the next four years from artificial intelligence.
They predict that AI-derived global business value will reach a total $1.2 trillion in 2018 — a 70% growth increase from last year. Additionally, the firm estimates that by 2022, that number will reach $3.9 trillion dollars.
Business Value plus Current and New Products and Services
During the next decade, Gartner research vice president John-David Lovelock claims AI will be an industry disrupter “due to advances in computational power, volume, velocity and variety of data, as well as advances in deep neural networks (DNNs).”
“In 2021, new revenue will become the dominant source, as companies uncover business value in using AI to increase sales of existing products and services, as well as to discover opportunities for new products and services,” adds Lovelock. “In the long run, the business value of AI will be about new revenue possibilities.”
Sources of AI Business Value
There are three different sources of AI business value:
- Customer experience: Relates mostly to the beneficial and detrimental effects on implied cost. For AI technology to be embraced by society, reach its true potential, and facilitate value, consumer experience is the most important and needed prerequisite.
- New revenue: Relates to growing sales of current products and services. As well as designing new products and services that will create opportunities to widen the scope of capabilities.
- Cost reduction: Relates to figuring out methods for lowering costs when providing existing products and services, as well as new products and services.
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