The AI market will be worth a lot. Like, really a lot

Published in

World AI

4 min readOct 22, 2019

More money is being poured into Artificial Intelligence than ever before, and the market is anticipated to grow tremendously in the near future. AI has brought about a new era of personalisation and consumer experience The modern customers are looking for business organizations that provide them with personalised services alongside recommendations. This has been made possible with Artificial Intelligence, also known as AI.

Recently, Pointsource carried out a survey and it revealed that most clients would be happy to shop time and again if AI is available. The study further revealed that at least 34% of consumers are willing to spend money, while 38% are more likely to share their experience with relatives and friends if they had an incredible shopping experience. This implies that AI has a way to make individuals shop more, spend more, and share more with their loved ones.

Companies spending money to use AI

Businesses have to spend money so that they reap the benefits of AI. This applies to many other technologies that are meant to enhance the quality of products or services issued to consumers. In the recent years, companies that have invested in AI have experienced an increase in the level of revenue due to the increased number of shoppers. Forrester Research conducted a study, and it revealed that cognitive computing innovations and platforms based on AI will be worth at least $1.2 Trillion in 2020. It is also believed that the overall net worth of the same will triple by 2021.

In the next few years, more retailers are anticipated to boost their AI and the learning budget of their machines by at least 7%. However, some industries have the greatest potential growth in the use of AI. In such industries, most of the money will be spent in building the back-end systems, warehousing and streamlining the level of customer satisfaction.

What areas are covered by AI?

Artificial Intelligence covers a plethora of regions that directly impact how customers see the quality of services issued by a company. However, other areas only affect the internal structure of organisations, but only a few businesses utilise AI for those reasons.

Chatbots

This is something that most clients found scary, but now they embrace it and are happy that it exists. It is believed that at least 83% of online shoppers admit that they are fine shopping with companies that use chatbots. This is quite a relief for organisations that today, do not have to spend money putting up human staffing and contact centers. At any point in time, chatbots provide organisations with the freedom to avail products or services to consumers at any time.

Chatbots have opened new gates to growth and have improved customer experience tremendously. Recently, it was reported that Sephora’s Chatbot brought about an 11% growth in makeover appointments. Asos also grew its orders by at least 300% by the time it started utilising the benefits of messenger chatbot.

Many companies are willing to use AI

Most companies have manifested genuine interest and plan to use AI chatbots in the near future. The market of global chatbot is anticipated to hit the $1.25 billion mark by 2025. This will be accompanied by an annual growth rate of at least 25%. Though the initial cost of investing in AI might seem overwhelming in the first place, it has tremendous benefits in the long run. Businesses will not have to hire humans to keep clients engaged while shopping online. It is expected that chatbots will reduce global business costs by at least $8 billion in 2022.

Internet of Things and Big Data IoT

Today, connected devices are all over the world, and they provide the best opportunity for organizations to stay in touch with their customers. IDC came up with a prediction that the IoT market itself will be worth at least $1.7 trillion in 2020. This will be a huge growth being that it had a net worth of $655 billion in 2014. The industries that are expected to delve more into using IoT include transportation and logistics, and manufacturing industries. It is believed that each industry would be spending at least $40 billion every year. Several of the IoT projects, in addition to capturing sensor data, also employ AI for predictive maintenance, operational optimisations, or for accepting voice commands.

Final Thoughts

As aforementioned, the uses of AI are limitless. While AI is already extremely valuable, industries are discovering newer uses of AI on a daily basis. This makes AI one of the most technologically profitable innovations of the current time, with the potential to be the highest grossing software field ever. And yet, we have just begun our journey into the AI world.