About AI and Technology
The scope of this megatrend is vast. Technological change is impacting every industry, and some of those technological advances are specific to particular fields or industries. However, there are several technological advancements that will have profound impact across many sectors. Two of these, and they are related, are the Internet of Things and Artificial Intelligence.
Much of the hype around the Internet of Things has focused on household applications, or “Smart Home” applications, and indeed these applications will have a great impact not only on how people manage their households, but also how companies market, sell and deliver products and services. However, less attention so far has been paid to how the Internet of Things transforms business applications, which could have a far greater overall economic impact. The Internet of Things will impact every industry from farming to advanced manufacturing. This innovation will have profound impact on how businesses manage and control supply chains, how they add value through producing goods and services and how those products and services are delivered. The boundaries between the firm and its suppliers and customers becomes more fluid as data is generated by suppliers and customers and used by the firm, and vice versa, resulting in smoother, more timely, and more tailored transactions.
Artificial Intelligence is rapidly evolving and is poised to disrupt a number of industries and occupations. While in the past, technological advances have more often disrupted blue-collar workers and have, for the most part, enhanced the productivity of professional workers, artificial intelligence has the potential to decimate some perviously professions and severely disrupt others, even those that have been disrupted by prior technological change. Occupations from financial advisors to doctors, marketers to educators, all face either a dramatic shift in the way they operate, or face extinction altogether. These occupations and their respective industries, financial services, healthcare, education, and almost any knowledge-intensive industry face major challenges, but also generate equally major opportunities with the emergence of artificial intelligence.
Business Challenges
While artificial intelligence may disrupt some by replacing human expertise in terms of diagnosing a disease, creating a financial plan, pinpointing a market opportunity, or communicating knowledge, those who can embrace these advances and adapt to and unlock the potential of artificial intelligence in their field will be able to provide a quantum leap in the level of service to their customers and generate great gains in competitive advantage over their less adaptable competitors. As virtual agents replace the diagnostic elements of these knowledge-intensive professions and industry roles, this enables these professionals and their organizations to utilize that diagnostic capability and translate it into more effective action.
Trend Overview
Artificial Intelligence solutions will help organizations increase this business-critical ability by optimizing automation initiatives and complementing platforms like RPA and BPM. In 2020, more organizations will adopt digital intelligence technologies into their overarching digital transformation initiatives, as enterprises realize that these solutions illuminate paths to improved customer experience, reduce operating costs and sharpen competitive advantage.
Table of Contents
Economic Impact of Artificial Intelligence
The first KISS metric is the economic impact of artificial intelligence. According to McKinsey, Artificial intelligence has the potential to incrementally add 16 percent or around $13 trillion by 2030 to current global economic output – an annual average contribution to productivity growth of about 1.2 percent between now and 2030. We want to present the trend of the economic impact of AI so that we can have an idea what the future looks like.
Worldwide revenues from the artificial intelligence (AI) software market is forecast to increase from 2018 to 2025. North America is the largest regional market which also experiences the largest market growth, with revenues increasing from around four billion U.S. dollars in 2018 to more than 50 billion U.S. dollars in 2025. Asia-Pacific and Europe are the other major regional players in the global AI software. AI technologies are being used in a variety of situations across consumer, enterprise, and government markets.
Artificial Intelligence Application
The second KISS Metric is Artificial Intelligence Application, we want to see the real-world application of AI and how it will benefit organizations and individuals.
The statistic shows the potential economic impact of artificial intelligence (AI) on the GDP worldwide by industry sector in 2030. Artificial intelligence is forecast to enhance the gross domestic product of the energy, utilities and mining industry by 5.5 percent in terms of productivity.
IoT spending and device connections installed base
The third KISS metric is the IoT spending and device connections installed base. The “Internet of things” (IoT) is becoming an increasingly growing topic of conversation both in the workplace and outside of it. It’s a concept that not only has the potential to impact how we live but also how we work. We want to see the worldwide IoT spending to better understand the future of IoT.
The total expenditure in the Internet of Thing(IoT) market is predicted to be more than 1,000 billion dollars in 2022. Besides, the total installed base of IoT connected devices is projected to amount to 21.5 billion units worldwide by 2025.
Global Growth in Revenue from IoT Verticals
The fourth KISS metric is Global Growth in Revenue from IoT Verticals. This goes along with the previous metric. On a broader scale, the IoT can be applied to things like transportation networks: “smart cities” which can help us reduce waste and improve efficiency for things such as energy use; this helping us understand and improve how we work and live.
With more people using IoT technology, the different verticals that make up IoT are forecast to increase in revenue over the next few years as following. This is also an great opportunity for device connection companies to earn high profits.
5G
The fifth KISS metric is 5G. We want to understand why 5G is important and how it’s changing the way the world connects and communicates.
According to reports, 5G will be 10 times faster than current LTE networks. This increase in speed will allow IoT devices to communicate and share data faster than ever. In the opposite direction of the impact, IoT technology development will press the improvement of 5G. Also, it will help increast the subscriptions of 5G.se, which has driven concerns from the environmental prospective.
Smart Home Worldwide
The last KISS Metric is smart home worldwide. The Revenue in the Smart Home market is projected to reach US$84,637m in 2020. We want to see the application of AI at households and the revenue it generates.
Smart home systems provide a variety of functions that can be managed remotely by a smartphone or computer. People use smart devices not only for entertainment, but also for security systems or automatic heating and lighting.
