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AI and cognitive systems to play a major role in digital transformation

AI and cognitive systems to play a major role in digital transformation

Widespread adoption of cognitive systems and artificial intelligence (AI) across a broad range of industries will drive worldwide revenues from nearly $8.0 billion in 2016 to more than $47 billion in 2020IDC.

Artificial Intelligence (AI) and cognitive systems are impacting a huge number of industries. A study commissioned by IDC predicts a compound annual growth rate (CAGR) of 55.1% for the cognitive/AI solutions markets over the 2016-2020 forecast period.

Software developers and end user organizations have already begun the process of embedding and deploying cognitive/artificial intelligence into almost every kind of enterprise application or process – David Schubmehl, Research Director, (Cognitive Systems and Content Analytics) IDC said.

He further added, “Recent announcements by several large technology vendors and the booming venture capital market for AI startups illustrate the need for organizations to be planning and undertaking strategies that incorporate these wide-ranging technologies. Identifying, understanding, and acting on the use cases, technologies, and growth opportunities for cognitive/AI systems will be a differentiating factor for most enterprises and the digital disruption caused by these technologies will be significant.” 

AI and machine learning technologies enable organizations to automate a wide range of operations that require data management in one or the other way. IDC predicted wide opportunity for AI and cognitive systems in banking, securities/investments and manufacturing owing to the vast set of unstructured data they possess that needs to be converted into insightful analytics.

Banking, retail along with healthcare and discrete manufacturing industries will be the major investors in cognitive or AI systems. Amongst these four, banking and retail each will deliver nearly $1.5 billion revenue, and combining the four the revenue will cover more than half of the worldwide AI and Cognitive revenues. Even healthcare and discrete manufacturing will deliver the highest revenue growth over the forecast period – 2016-2020 with 69.3% and 61.4% CAGRs respectively.

In another report from 451 research in association with Microsoft, AI is identified as one of the key technologies in which organizations are willing to invest in next five years, with the level of investment reaching 53%.

Organizations like Microsoft and Facebook are also using artificial intelligence for bettering their services. Recently, they unveiled new server designs as a part of their initial steps towards AI. 

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