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Global AI business value to hit $1.2 trillion in 2018: Gartner

Sentinel Digital DeskBy : Sentinel Digital Desk

  |  26 April 2018 12:00 AM GMT

New Delhi, April 25: Driven by customer experience, new revenue and cost reduction, global business value derived from Artificial Intelligence (AI) is projected to hit $1.2 trillion in 2018 -- an increase of 70 per cent from 2017, a Gartner forecast said on Wednesday.

AI-derived business value is forecast to reach $3.9 trillion in 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)," John-David Lovelock, Research Vice President at Gartner said in a statement. One of the biggest aggregate sources for AI-enhanced products and services acquired by enterprises between 2017 and 2022 will be niche solutions.

"Business executives will drive investment in these products, sourced from thousands of narrowly focused, specialist suppliers with specific AI-enhanced applications," Lovelock added. In the early years of AI, customer experience (CX) will be the primary source of derived business value as organisations see value in using AI techniques to improve every customer interaction.

"CX is followed closely by cost reduction, as organisations look for ways to use AI to increase process efficiency to improve decision making and automate more tasks," said Lovelock.

"However, 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," he Gartner executive noted. (IANS)

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