The AI market may be bigger than you think
With AI still in its infancy, it is difficult to estimate how large the market will be. The consulting firm McKinsey estimates that the AI market could reach $13 trillion by 2030, while PricewaterhouseCoopers assesses it could be $15.7 trillion by 2030. Meanwhile, Goldman Sachs has estimated it could boost GDP by 7%.
We believe the ultimate addressable market for AI is the hardest of any we have tried to size. After all, what is the “value” of better intelligence — or having more knowledge about everything? Simply put, AI has open-ended potential to generate a market many multiples larger than those of previous technological advances.
When the smartphone was popularised 15 years ago, combining internet and mobile phone technology, few could have predicted it would lead to new app-based business models like Uber and DoorDash. The breakthroughs in artificial intelligence represent similar potential.
What’s more, GenAI can analyse vast amounts of information and use pattern recognition to teach itself new tasks. This unlocks the potential to solve complex problems, uncover new insights and potentially lead to the creation of new business models.
Four ways early adopters are using AI
Companies are still in the experimentation phase with AI. Some IT consulting businesses, such as Accenture, have launched an initiative to help clients identify use cases for generative AI, adopt AI tools and integrate them into organisations.
Businesses are already seeking to tap into the efficiency and productivity gains AI can deliver. As much as 30% of hours worked in the US could be automated by 2030, according to the McKinsey study.
Here are just a few ways companies are integrating AI into their businesses.
1. Scientific and medical discovery
AI will likely accelerate discovery across various disciplines. Artificial intelligence can potentially process the totality of all know mathematics or physics or medicine in a very short time. For example, biopharma company Regeneron is harnessing GenAI tools to scour its massive database at its genetics center to identify disease targets, understand disease progression, develop drug therapies and track how individuals respond to treatment.
2. Product development
Consumer products giant Procter & Gamble has begun using GenAI to improve molecular discovery, enabling it to develop, for example, 100 fragrance options at a time rather than one. As a result, they can respond to new product trends within months instead of years.
Among consumer tech offerings, Meta has developed AI sunglasses equipped with cameras that see what the wearer sees and microphones to hear what the wearer hears. The glasses are designed to absorb information around the user, including capturing photos or making suggestions for things like spreadsheet formatting, for example.
3. Industrial automation and robotics
Amazon, which has long used industrial robots in its fulfillment centers, is applying AI to improve their efficiency and functionality. What’s more, robotics company Figure has harnessed ChatGPT to create a “humanoid” robot with audio and video inputs that can converse with and work alongside humans. Schneider Electric is developing a generative AI tool to communicate with customers about their carbon emissions. Construction and mining equipment manufacturer Caterpillar is investing in AI to boost productivity of its autonomous machines.
4. IT services
Companies were already shifting several of their IT needs to the cloud and outsourcing more of their tech support. This trend is being amplified by the proliferation of GenAI, which has spawned a host of smaller companies that offer larger enterprises consulting and IT services that can evaluate and score the quality of content being created through the AI process, which can generate false or misleading information, known as hallucinations.
Other companies have been using GenAI to support call centers, improve financial models, create marketing and advertising content, analyse legal contracts, and develop employee training materials.
AI investment opportunities
While GenAI adoption has been most aggressive in the tech and media industries, its use has spread across industries and organisations.
Businesses worldwide invested an estimated $19.4 billion in 2023 to integrate AI into their processes, according to a Wall Street Journal report. While many are in the experimentation phase, AI has the potential to create massive productivity gains, reduce costs for companies and generate insights that provide a competitive edge for early adopters.
