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As artificial intelligence (AI) inches forward, revenues for the ecosystem are expected to surpass $12 billion before the end of the decade, driven by increasing adoption rates and innovative leaps.
The projected rise in revenue by 2030 is a massive leap from less than $1 billion at the end of 2023. Closing at $12 billion will represent a compound annual growth rate (CAGR) of 46.5% in less than six years, with experts rippling with optimism for the future.
A range of factors underpin the prediction, including data availability to fuel the AI market. Large language models (LLMs) generally rely on large swathes of data for training, a feat made possible by the growth spurts of online activities from digital devices.
“As organizations seek to extract value from this wealth of information, the demand for AI solutions that can effectively process and analyze large datasets continues to rise, reinforcing the symbiotic relationship between AI advancement and data availability,” according to a Next Move Strategy Consulting report.
Aside from data availability, the report points to the recent demand for automation across various industries. Firms in the manufacturing, health, and finance verticals are scrambling to augment existing processes with tailor-made AI solutions for various reasons.
The use cases include applications to monitor equipment, predict output, improve customer experiences, personalize features for clients, and minimize downtime. Large market cap firms have taken early steps to integrate AI in their operations, with Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and Meta (NASDAQ: META) rolling out in-house solutions for employees.
In terms of regional distribution, the report touts North America as contributing a chunk of the AI market share, buoyed by the presence of industry heavyweights in the region. Nvidia (NASDAQ: NVDA), Google, Meta, Microsoft (NASDAQ: MSFT), and Apple have set up shop in the United States, but expansions to the European Union and Southeast Asia could see a possible capital flight in the coming years.
“Asia-Pacific shows steady growth in the AI market owing to the growing adoption of AI in retail & e-commerce for enhanced personalization, leveraging recommendation systems and chatbots, to improve customer experiences and drive loyalty,” read the report.
Not a straight path to the top
The report also noted that achieving the revenue expectation will not be a walk in the park for the ecosystem blighted by several challenges. Data privacy issues stand as a major stumbling block against AI’s climb to the top with global regulators beaming a searchlight on the activities of frontline AI companies.
Copyright issues have posed an existential threat to AI, accentuated by the barrage of lawsuits against AI developers by intellectual property (IP) holders. However, integration with blockchain technology may offer a veritable solution to AI’s data privacy and copyright issues, but a large-scale application of both technologies has yet to leave the runway.
In order for artificial intelligence (AI) to work right within the law and thrive in the face of growing challenges, it needs to integrate an enterprise blockchain system that ensures data input quality and ownership—allowing it to keep data safe while also guaranteeing the immutability of data. Check out CoinGeek’s coverage on this emerging tech to learn more why Enterprise blockchain will be the backbone of AI.
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