- Omdia estimates that 57 percent of AI revenue will involve perception, with enhancements in vision and language between 2018 and 2025
- Omdia said that the largest technology category in terms of revenue, deep learning revenue is expected to grow from $5.1 billion in 2018 to $74.5 billion by 2025
Global AI software revenue is projected to increase by 12-fold in the next seven years from $10.1 billion in 2018 to $126.0 billion in 2025 as per Omdia. The report said that Demand for artificial intelligence in the consumer, enterprise, government, and defense sectors is growing.
Keith Kirkpatrick, principal analyst with Omdia said, “The global AI market is entering a new phase in 2020 where the narrative is shifting from asking whether AI is viable to declaring that AI is now a requirement for most enterprises that are trying to compete on a global.AI is likely to trigger major transformations in industries where there is a clear case for incorporating AI, rather than in pie-in-the-sky use cases that may not generate a return on investment (ROI) for many years.”
Voice or speech recognition represents the highest revenue-generating use case
As per Omdia, presently, the number of business-to-business (B2B) software opportunities related to AI total 333 and cover 28 industry sectors, with 203 unique use cases. These use cases cover three major categories that are defined by the primary technology enablers of vision, language, and analytics. It said that industry sectors where AI is likely to generate an immediate ROI include consumer (internet services), telecommunications, automotive, healthcare, advertising, business services, and retail.
It added, “The consumer sector has been particularly successful in tapping the potential of AI due to the availability of an increasingly large amount of data as well as the development of powerful AI algorithms and processing hardware. This is expected to motivate other top AI verticals to leverage the growing use of Internet of things (IoT) data sources, specialized deep-learning (DL) algorithms, and high-end processing hardware.”
Voice or speech recognition represents the highest revenue-generating use case. This is due to the rising adoption of consumer digital assistants in smart speakers, mobile smartphone devices, automobiles, and in other consumer devices and services.
Deep learning will be a key driving force of the AI market
It said, “Other top use cases include customer service and marketing virtual digital assistants, network IT/operations and management, video surveillance, supply chain and inventory management, customer experience management/service delivery, personalized tutoring and adaptive learning, machine/vehicular object-detection/identification/avoidance, medical image analysis, and patient data processing.”
Omdia estimates that 57 percent of AI revenue will involve perception, with enhancements in vision and language between 2018 and 2025. It also said that DL will be the key driving force of the AI market.
It said that unlike machine learning, DL has improved perception capabilities that enable it to learn the features and rules of data without being told what those features are. This makes DL extend to other types of very large datasets like those in investment trading, cybersecurity, and healthcare. Many use cases will employ DL or a combination of DL with other technologies like ML, computer vision, natural language processing, or machine reasoning. This will result in DL-based human perception derived from vision and language to take over machine learning-based analytics’ role in driving AI in the long run.
Omdia said that the largest technology category in terms of revenue, DL revenue is expected to grow from $5.1 billion in 2018 to $74.5 billion by 2025. This will represent 59 per cent of the overall AI market in 2025.