Why AI is Considered The Next Main Market Innovation
A discerning look into the past reveals the transformative power of technological innovations. Two prime examples of this are the blockchain technology, which originated in 2008 and has been growing at a staggering compound annual growth rate (CAGR) of 62.1%, and mobile technology, which moved from a modest creation in 1973 to an indispensable tool today, with over 5.3 billion global users. Now, history is on the brink of repeating itself with Artificial Intelligence (AI), the new titan on the technology scene.
Poised to supersede its predecessors, AI stands tall at the forefront of the 4th industrial revolution with an evolution trajectory that not only mirrors those of blockchain and mobile technology, but also seems poised to outpace them. A recent Forbes report identifies AI as the most strategic technology of this era, with 77% of organizations contemplating AI at the core of their business strategies.
Stamping its footprint across industries, AI exhibits unmatched versatility. With a projected global market value of a whopping $733.7 billion by 2027, AI’s growth is a reflection of its increasing relevance and impact. From healthcare to retail, it’s revolutionizing business operations, enhancing customer experiences, optimizing resource utilization, and catalyzing new revenue generation models worldwide.
In conclusion, the world is ripe for another tech revolution. And this time, it’s AI leading the change. As we stand at the cusp of this transformation, one thing is clear: the future belongs to those agile enough to adapt and innovate alongside this intelligent technology.
The Competitive Edge Provided by AI
While the world witnessed a significant shift with the advent of Blockchain technology, which proliferated at an exceptional compound annual growth rate (CAGR) of 62.1%, and the boom of mobile technology reaching a staggering tally of 5.3 billion users globally since its inception in 1973, we now witness another transformative epoch in technology – Artificial Intelligence (AI). AI is confidently ensconced at the helm of this 4th industrial revolution. Its trajectory of evolution not only surpasses, but also accelerates beyond the historical paradigms set by Blockchain and mobile technology. Corroborated by a compelling Forbes report, 77% of organizations already recognize and champion AI as the spine of their strategic initiatives.
Employed across numerous industries, AI’s unique adaptability is matchless. Reflecting consequential influence and prominence, the global market value of AI is projected to achieve an astonishing 733.7 billion USD by 2027. This remarkable growth signifies AI’s amplified significance and impact worldwide. Its disruptive prowess is visible across various sectors like healthcare and retail. From surprising innovation in business procedures, captivating augmentation in customer experiences, to impressive optimization in resource administration, AI triggers unprecedented new revenue generative models globally.
To summarize, we are on the verge of another substantial technological transformation, with AI steering the wheel. The unmistakable trend asserts that adaptive, innovative entities who walk hand in hand with this intelligent technology will script the future’s success tales. AI is, without a shadow of a doubt, the ultimate game-changer.
The Potential Consequences of Ignoring AI Advancements
However, despite its gargantuan potential, businesses that choose to overlook AI’s advancements stand on precarious ground, risking the fritter of their competitive edge. They’re confronted with critical threats such as loss of market share driven by the crucial 44% of businesses implementing AI-driven process alterations, declining operational efficiencies, and missed possibilities for business expansion. History has taught us that businesses slow to embrace groundbreaking technologies often face decline. The best example being Kodak, once a photography behemoth that failed to adopt the digital revolution quick enough, resulting in its insolvency in 2012. Similar scenarios emerged during the advent of mobile and blockchain technologies.
A collectivity of these missteps bridges the emergence of an ‘innovation gap’ in the industry, allowing competitors an unfettered chance to capture your unclaimed territory. As per a McKinsey Global Institute report, AI adoption could lead to an estimated $13 trillion in new global economic activity by 2030, illustrating both the formidable opportunities and consequences.
Suffice to say, businesses that avert the technological tide surge offered by AI underwater into a whirlpool of challenges. It is quintessential to seize the chance to ride the AI wave to remain buoyant and thrive in this transformative epoch. Indeed, adopting AI-driven business practices are not just a route to competitive advantage now, but have become a requisite to survival and sustainable growth in this AI-dominant era.
Typical topics we cover during consultation:
- How can I use AI to automate my company’s business processes?
- Which functionalities of my application should I enhance with AI?
- Rapid verification of the application code quality
- Why are there so many errors in my application?
- Am I ready for MVP development?
AI Adoption: Challenges and Solutions
Facing the storm of AI adoption within their operations, companies wrestle against prevailing obstacles such as data privacy fears, a scarcity of AI-versed experts, and the sheer weight of implementation costs. As per BCG Henderson Institute research, a significant 90% of executives acknowledged data privacy and protection as their top concern when contemplating the adoption of AI. This gnawing concern is swiftly followed by the scarcity of skilled AI professionals, with a 60% shortage in AI, data science and the like tagged as “critical” by organizations. The cost of AI implementation sears as another monumental deterrent, with companies requiring an estimated $15 million to install AI-based solutions.
However, mitigating these hurdles are an array of solutions providing a glimmer of hope. To overcome the deficit of skilled professionals, companies are promoting advanced AI training programs, fostering an internal pipeline of AI-centric productivity. In fact, by 2025, the number of employees receiving AI training is predicted to increase by 270%, manifesting as a formidable army of self-equipped AI warriors. Likewise, forming strategic partnerships with AI tech firms can instigate a swift, effective AI diffusion within organizations. Lastly, employing AI as a Service (AIaaS) platforms provides a cost-effective and flexible substitute to traditional high-cost implementations. Revenues from AIaaS platforms are forecasted to escalate to approximately $6.79 Billion by 2025.
Permeating through these challenges and solutions, it is clear that AI adoption in business operations is not a mere trend, but a harbinger of an imminent future. Companies that shirk from this digital wave, risk drowning in a pool of stagnation, rendering their competitive edge obsolete. In juxtaposition, companies harnessing the tools of AI paint a vibrant picture of growth, adaptability and relentless revolution, leveraging AI not as a challenge, but as a crucial companion to their journey towards an AI-dominated era.
The Future of AI in Business
The convergence of an ever-evolving digital landscape and the relentless advancements in AI paints a promising yet daunting horizon for the business world. Undeniably, artificial intelligence isn’t merely a fashionable trend that adorns the palette of corporate buzzwords; it is the harbinger of an inevitable future that waits around the corner of the innovation curve.
From foresight to the forefront, a wide array of promising and transformative possibilities orchestrated by AI, thus unfurl in front of us. It is predicted that by 2030, AI could raise global GDP by 15% or $15.7 trillion, projecting a future molded by possibilities beyond the realm of our current cognition. A Gartner report predicts that by 2022, 85% of AI projects will deliver erroneous outcomes due to bias in data, algorithms or the teams responsible for managing them. Thus, it exhibits the powerful and disruptive potential rooted within AI.
Whether it’s re-defining the dynamics of traditionally labour-intensive sectors like agriculture and manufacturing or revolutionizing personalized customer experiences in the retail industry, the potential scope of AI continues to expand. However, the onus to channelize this potential into propelling competitive advantages and capturing emerging opportunities lies with the organizations.
At this techno-economic crossroad, ambivalence will only lead to stagnation. It’s paramount that companies recognise and adapt to this new era of AI-driven solutions. The early bird catches the worm, and in the context of the AI revolution, it will be those that leap rather than linger who secure the competitive helm of their industry. Hence, embracing AI is no longer an option, but a vital necessity for businesses to thrive in the highly competitive, global race to digital transformation and innovation. The future is here, fashioned by data, driven by AI, and destined for those daring enough to adapt.
