IDC predicts that the worldwide cognitive/artificial intelligence (AI) software platforms market will grow from $1.6 billion in 2016 to $8.4 billion in 2021 at a compound annual growth rate (CAGR) of 39.7%.
Organizations are currently undertaking projects developing the next generation of intelligent applications based on cognitive/AI software platform capabilities. The strong overall growth rate represents both the maturation and broad adoption of the current generation of information across technologies including deep learning and other forms of machine learning, natural language processing, generation, and understanding as well as semantically enabled knowledge extraction technologies including knowledge graphs and reasoning systems. Factors that continue to affect market growth include the following:
- The growth rate of cognitive/AI software platforms revenue in 2018 exceeded expectations and showed that organizations are moving from prototypes and proof of concepts to production applications within the enterprise
- The promise of cognitive/AI software platforms will not meet expectations for some users, which will contribute to lowering the growth rate in future years.
In our recent report, IDC FutureScape: Worldwide Analytics and Information Management 2018 Predictions, we assessed key drivers affecting IT and business decision makers responsible for this spending and presented the top 10 predictions affecting analytics and information management initiatives. These include:
Prediction 1: By 2020, 10% of Enterprise Applications Spending Will Be for New Task-Level Applications That Incorporate Software, Data, and Algorithms
Prediction 3: By 2019, 25% of Enterprises That Rely on ML-Based Decision Automation Will Have Established Governance Processes to Assess Predictions, Prescriptions, and Decisions Against Regulators, Internal Policy, and Ethical Considerations Using Internal and External Human and Machine Auditors
Prediction 8: By 2020, 20% of Large Enterprises Will Use ML-Based Software to Create New Materials, Including Reports, Meeting Summaries, Correspondence, and Visual Communications That Synthesize Information Such as Presentations
Prediction 9: By 2019, the Adoption of Intelligent Automation and Company-Specific Digital Assistants Will Have Led to a Fourfold Improvement in Knowledge-Worker Productivity Across Use Cases
How can one compete in an AI enabled world?
Many organizations are continually looking for ways to make the jobs of knowledge workers more efficient and productive, given the increasing amount of information that these workers must deal with daily. Other organizations are looking for new ways to increase sales, reduce costs, or understand their customers better by using various types of automation coupled with big data.
The cognitive/AI software platforms market is growing significantly and will continue to expand over the next three to five years. Vendors that are participating in this market should actively consider adding a full range of capabilities such as conversational technologies, natural language processing, image and video analytics, deep learning, machine learning, hypothesis generation, and predictive analytics and adding more to their offerings to provide a complete suite of functionality to enterprise and commercial developers. Since cognitive/AI applications are highly reliant on unstructured information analysis and manipulation, vendors that offer strong capabilities in these areas should be able to provide tools that allow cognitive/AI applications to exploit these assets.
I will be speaking on a panel dedicated to competing in an AI world on Tuesday, December 12th at AI World in Boston, MA. During this panel, myself and our panelists will be discussing the factors that organizations should consider to build successful AI applications that will have a real impact on their organizations. Factors such as risk, bias, data sourcing and intended use will all be topics of discussion. Save $200 off our VIP conference pass using code AIW200IDC. Register today by clicking here: bit.ly/2Agon4n
To learn more about these reports and predictions, please refer to the IDC reports, IDC FutureScape: Worldwide Analytics and Information Management 2018 Predictions (Document) and Worldwide Cognitive/Artificial Intelligence Software Platforms Forecast, 2017–2021 (Document ).