AI Market - ‘Skyrocketing

The AI market is skyrocketing. The global artificial intelligence market size was valued at $136.55 billion in 2022 and is projected to expand at a compound annual growth rate of 37.3% from 2023 to 2030.

The stupendous growth of the AI market is attributed to the advancements of Industry 4.0 and its convergence with digital transformation across multiple sectors. The World Economic Forum and McKinsey have recognized 103 globally spread sites as exemplars of Industry 4.0. Organizations embracing digital transformation, enhanced by AI and XAI, have become notably agile, customer-centric, and operational.

However, the scarcity of adequately trained individuals in data ethics, transparency, and bias mitigation poses a significant challenge. Without proper training, AI models may risk being biased or lack transparency, which hinders the broader acceptance of XAI solutions. Regulatory frameworks set by governmental bodies, on the other hand, are anticipated to provide a conducive environment for XAI adoption, emphasizing transparency in AI-powered decisions.

The continuous research and innovation directed by tech giants are driving the adoption of advanced technologies in industry verticals, such as automotive, healthcare, retail, finance, and manufacturing.

Recently, AMD CEO Lisa Su offered an optimistic assessment of the AI trend. She has emphasized AMD is one of the few companies that offers a complete AI technology portfolio across chips and software. Moreover, AMD also has the supply chain relationships to secure the capacity required—including in advanced chip packaging and advanced memory chips—to be a big player in AI semiconductor market.

This growth is being driven by a number of factors, including:

· The increasing adoption of AI across a wide range of industries, including healthcare, finance, manufacturing, and retail.

· The rapid development of new AI technologies, such as machine learning, deep learning, and natural language processing.

· The growing availability of data to train and deploy AI models.

· The declining cost of AI hardware and software.

The AI market is still in its early stages of development, but it is growing rapidly. As AI technology becomes more sophisticated and affordable, it is likely to have a major impact on all aspects of our lives.

S Mohini Ratna, Editor, VARINDIA