Artificial Intelligence to Generate Over 100 Billion in Revenues by 2025

Artificial intelligence is one of the most hyped about technical innovation and study. AI is set to disrupt all parts of human life and eventually it is feared to take over our planet. People tend to forget the code is generated by humans and AI is eventually just automatically logically adjusting peace of software. We shouldn’t fear the AI robots taking over the planet but rather we should be afraid of people with bad intentions taking over the planet using AI. The technology industry is full of hedgehogs thus it’s no wonder sometimes we forget the reality.
Hype Attracts Capital
When something is as hyped as AI, it will also attract capital. While investors are getting smarter no one can help it, we love action and energy. Hype brings just that. Partly because of hyping AI development has attracted a great deal of financing for startups, organizations, and universities. Without capital, the development would not go fast forward. Because of the fast development, we are now seeing fast growth in the number of revenues generated with artificial intelligence.
The Revenue Growth
According to Tractica the revenues coming from software using artificial intelligence are going to increase from 9.5 billion U.S dollar 2018 to 118.6 billion U.S dollars by 2025.

Furthermore, Tractica believes we are now finally moving from hype to reality in AI development and are about to see real working solutions entering to market. We can see Tractica has been right when we look for example with face recognition, robotics and voice software entering the market.
Tractica report provides a quantitative assessment of the market opportunity for AI across the consumer, enterprise, government, and defense sectors.
MarketWatch has estimated the total market value of artificial intelligence to be 191 billion U.S. dollars in 2024 at CAGR of 37%.
MarketWatch also points out the lack of talented workers and the risk that AI might intimidate the dignity of humans. This might resist market growth. However, MarketWatch estimates it to have a minimal effect because of the introduction of newer technologies.
Grand View Research https://www.grandviewresearch.com/press-release/global-artificial-intelligence-ai-market
With such high predictions for one area of technological development, one can predict the capital to start moving. There is has been notable sums invested in the development of artificial intelligence by government, venture capitalists and other investors.
Notable Sums Are Being Invested in Startups and Projects Developing Artificial Intelligence Solutions
European Union: 1,2 Billion U.S dollars to Human Brain Project which is about replicating the human brains in machines. It’s not only about artificial intelligence but it certainly is part of it.
U.S. Startup Scene: “ $6.62 billion so far in 2019, which puts us on pace to slightly top the 2018 total of $8.67 billion” — Crunchbase research.
A Crunchbase News analysis of venture funding for companies tied to AI and machine learning finds that investment in U.S. startups continues to rise. Companies in the space raised $6.62 billion so far in 2019, which puts us on pace to slightly top the 2018 total of $8.67 billion. — Crunchbase, September 9, 2019.
Worldwide by a quarter from 2011 to 2019: Second quarter of 2019, AI funding was at 7.41 billion U.S. dollars. — Statista

SoftBank’s new AI-focused 100 U.S Dollar fund: SoftBank is known to disrupt in Silicon Valley with its massive fund size. Now it has launched a new 100 Billion Fund focusing especially on artificial intelligence development.
SoftBank stunned the venture capital world with its launch of the $100 billion Vision Fund in 2017 and its wide-ranging and aggressive investments. Now billionaire Masayoshi Son has announced an even larger fund with $108 billion to invest in artificial intelligence companies. — Forbes July 26, 2019.
Microsoft 1 Billion U.S. Dollar investment into OpenAI project.
What Microsoft’s $1 Billion Investment in OpenAI Could Achieve — Observer July 23, 2019
No Wonder Artificial Intelligence Attracts Capital — It Generates revenue Too and There is more than hype in it.
As AI software is estimated to generate over 100 billion U.S. dollars in revenue by 2025 it can’t be only hype. We can see the impact and opportunities AI offers and there is much more than hype in it. The capital has been invested for a reason.
Let’s take a few examples:
Predictive Maintenance:
International Society of Automation (ISA) estimated the cost of machine downtime to be $647 billion annually. With AI and machine learning, we can improve maintenance operations and introduce something exciting: Predictive Maintenance. For increased efficiency and longer life-cycle of machines.
With air conditioner cleaning filters on time can reduce energy consumption as much as 15% and on top of that with predictive maintenance the life-cycle of machines is estimated to increase 3–5 years.
According to the International Energy Agency (IEA) The Future Of Cooling Report 2018 air conditioners consume as much as 2020 TWh electricity globally every year and the amount is increasing as more and more AC’s are being installed. Let’s calculate some numbers to understand what does it mean.
According to IEA, the energy consumed by cooling is 2020 TWh = 2 020 000 000 000 kWh annually. Using global average electricity price 0,14 U.S. dollars per kWh we can just for fun calculate of the total amount of energy used in cooling the cost to be 2 020 000 000 000kWh * 0,14$/kWh = 282 800 000 000 U.S. Dollars. To continue the crazy ride of mathematics we then go and say we would save 15% from it. 282 800 000 000 U.S. Dollars * 0,15 = 42 420 000 000 U.S. Dollars savings. Main purpose of this very much simplified calculation is to give an idea of the potential of artificial intelligence.
Environment and AI
Artificial Intelligence solutions are being developed to help in the fight against climate change.
Here are some ideas of AI impacting to the sustainable environment:
Predictive Maintenance
Consider for example predictive maintenance which makes sure devices are maintained on time. It has been studied by the U.S. Department of energy to lengthen the life-cycle of machines and reduce energy conservation as much as 15% for example in airconditioning.
Cleaning the filters of Air Conditioner can save as much 15% in energy consumption according to the U.S. Department of Energy.
Driverless cars
With self-driving cars, we can hopefully go into the future where no one owns cars. We can have autonomous self-driving electric cars which are occupied 100%. It means no empty driving but just a phone app from which you can order can and go to the next destination. Cars move when ordered.
For more ideas on how AI can help us fight environmental issues, take a look at articles below.
Here’s how AI can help fight climate change according to the field’s top thinkers — The Verge June 25, 2019
Harnessing artificial intelligence for climate science — United space in Europe ESA September 18, 2019
ResearchGate has been studying how Artificial Intelligence could help us in processing the data to make the best environmental decisions. Interesting ideas can be found from their paper: Artificial Intelligence and Environmental Decision Support Systems
To The Future with Autonomous Code
The future shall belong to the autonomous code. Autonomous code certainly doesn’t mean humans become useless. It’s the opposite. More education is needed however and willingness from people to learn the new technologies. There is a constantly increasing need for people to understand how machines function and being able to operate them. The autonomous machine doesn’t mean no human needed even if with the huge funding it’s not going to happen. More skills, more education, and artificial intelligence can be a nice addition to our everyday life.
