The rapidly accelerating of AI market

The AI ​​market is experiencing incredible growth. In fact, in 2023 it recorded a growth of +52%.

The USA excels globally, being the leading country in terms of venture capital investments in AI. In 2023, the $67.7 billion invested in the US represents approximately five times the amount invested in China (€13.5 billion) and eleven times the amount invested in the EU (€6.1 billion).

The data were highlighted in the latest report from the Artificial Intelligence Observatory at the School of Management of the Polytechnic of Milan. These findings were presented during the conference “AI at the center: news, applications, and rules” which analyses the widespread adoption of AI-based technologies.

It’s interesting to delve into some details.

THE SPREAD OF AI IN COMPANIES

61% of large companies have an Artificial Intelligence project, at least in the experimental phase. Among SMEs, this drops to 18%.

Companies continuing experimentation are speeding up processes and obtaining great benefits.

In more conservative organizations, cases of Generative Artificial Intelligence experiments are rare.

Specifically:

• 37% of large companies have no active projects but intend to activate them in the next 12 months.
• About 2 out of 3 large companies have discussed Generative AI applications internally, with one in four starting an experiment (17% of the total).
• Only 7% of small and medium-sized companies are considering potential AI applications, with just 2% activating at least one trial.

The Observatory analysed the most adopted solutions by companies.The largest share of the AI market (29%) is for analysis and extraction of information from archives.

Then, 27% are for language interpretation solutions. 22% are for algorithms suggesting content to customers based on preferences. 10% are for video and image analysis, 7% for Process Orchestration Systems, and 5% for Generative AI.

WHAT ARE THE DRIVERS OF THIS GROWTH?

Several factors are driving the surge in the AI market.

Among the main ones are:

• Great growth prospects: investors are attracted by the vast market potential of AI. Industries like healthcare, finance, manufacturing, and retail are adopting smart solutions to improve efficiency, cut costs, and provide personalized user experiences.
• Technological advancements: AI is evolving due to significant advances in research and development of more powerful algorithms and complex ML models. These advances make AI applicable to a wide range of industries and problems, making investments more appealing.
• Increased regulation: Public administration recognizes AI’s transformative potential for the economy and society. This can involve direct funding, tax breaks, or creating innovation-friendly ecosystems. The AI Act marks a new starting point for developing safer and more conscientious technologies.
• Consumer demand: consumers increasingly expect personalized and intuitive experiences, leading businesses to invest in smart solutions.

We at Team Drive2Data strongly believe in the potential of innovation and continue to develop solutions in line with the ever-changing economic environment. Our platforms are built with the aim of creating tools to support human work by improving every aspect of it.