Artificial intelligence (AI) is on the rise with global business value expected to hit US$1.2 trillion in 2018, an increase of 70 percent from 2017, according to Gartner.
This number is forecast to reach US$3.9 trillion in 2022.
The Gartner AI-derived business value forecast assesses the total business value of AI across all Gartner-covered enterprise vertical sectors. There are three different sources of AI business value: customer experience, new revenue, and cost reduction.
“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),” said John-David Lovelock, Research Vice President of Gartner.
“One of the biggest aggregate sources for AI-enhanced products and services acquired by enterprises between 2017 and 2022 will be niche solutions that address one need very well. Business executives will drive investment in these products, sourced from thousands of narrowly focused, specialist suppliers with specific AI-enhanced applications,” he added.
Customer experience is key
He noted that in the early years of AI, customer experience (CX) is the primary source of derived business value, as organisations see value in using AI techniques to improve every customer interaction, with the goal of increasing customer growth and retention.
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.
“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. Thus, in the long run, the business value of AI will be about new revenue possibilities,” said Lovelock.