In October 2016, we launched the Marketing AI Institute, a content hub to connect the dots for marketers interested in AI’s potential to transform their businesses and careers. The website was a bet that artificial intelligence would profoundly change how marketers and brands work.
That bet is being validated by some eye-popping stats on artificial intelligence market potential, funding, and adoption in marketing and other industries.
1. The robots and AI solutions market will grow to $153 billion by the end of 2020, according to research from Bank of America (BoA).
This will comprise $83 billion for robots and robotics and $70 billion for AI-based analytics.
With this incredible growth, experts also expect significant automation, cost-savings, and disruption.
2. There will also be $9 trillion of cuts in employment costs via “AI-enabled automation of knowledge work,” says BoA.
Furthermore, AI could boost productivity by 30% in many industries, says Bank of America, while cutting manufacturing labor costs by 18% to 33%.
While we focus on the ability of AI to largely enhance marketers’ knowledge and capabilities, the reality is that it will also have a disruptive effect on jobs in the coming decade.
3. Bank of America further predicts $14 to $33 trillion in annual “creative disruption impact” in the next decade.
This includes $8 to $9 trillion of cost reductions across manufacturing and healthcare.
4. Adoption of cognitive systems and AI will drive worldwide revenues from $8 billion in 2016 to $47 billion in 2020, says IDC.
That growth will be driven by “widespread adoption of cognitive systems and artificial intelligence across a broad range of industries.”
5. 75% of executives surveyed by The Economist Intelligence Unit [PDF] say AI will be “actively implemented” in companies within the next three years.
In fact, executives are aware of AI’s opportunities and looking to implement AI-powered solutions in the next few years.
6. 3,500 marketing leaders say AI is the “leading technology where marketers expect the most growth in the next two years,” according to Salesforce.
The firm estimates that AI associated with CRM activities will boost global business revenue by $1.1 trillion from 2017 to 2021.
7. $20 to $30 billion was spent by tech giants on AI in 2016, according to estimates from McKinsey.
AI’s popularity with executives and marketers has top firms like Google, Salesforce, Microsoft, and Amazon frantically acquiring or building AI systems to integrate across their product suites.
8. There has been a 4.6X rise in deals to AI startups in the last five years, from 150 in 2012 to 698 in 2016 according to CB Insights.
The firm also estimates $4.87 billion in total funding for AI startups occurred in 2016. Startups have proliferated as it becomes easier and cheaper to build artificial intelligence algorithms and platforms.
9. Artificial intelligence will, on average, boost rates of profitability by 38% and provide an economic boost of $14 trillion in additional gross value by 2035, according to research by Accenture.
The opportunity facing both companies who adopt AI and those that sell it is massive. Accenture expects higher double-digit gains in profitability and a huge economic boost from AI in the next two decades.
10. “We think [deep learning] could approach $17 trillion in market cap—which would be 35 Amazons.”
Catherine Wood, CEO of ARK Investment Management, said this to Singularity University’s Exponential Finance audience.
“Bill Gates has said a breakthrough in machine learning would be worth 10 Microsofts. Microsoft is $550 to $600 billion. We think deep learning is going to be twice that.”