Essential AI insights from Q1 21

Shirley Siluk

Senior Editor

March 2, 2021 4:18 pm

1.US military activity in AI will drive greater investment in EU & China startups

Written by investors Nathan Benaich and Ian Hogan, the State of AI Report 2020 predicts that Chinese and European defence-focused AI startups will raise more than $100 million in the coming year in response to US Defense Department activity and investments in US-based military AI startups.

2. Expect growing shipments of tech for distributed AI
Technology for distributed artificial intelligence will see significant growth in 2021, with annual shipments of edge AI gateways growing from 8.55 million in 2020 to more than 10 million this year, and AI server shipments increasing from 69,000 in 2020 to 105,000, ABI Research says.

3. North American wealth managers see promise of AI, but lag in scaling tech

While 84 per cent of North American wealth managers believe AI will transform their industry over the next five years, just 28 per cent are currently scaling the technology across their businesses, Accenture reports.

4. Mutual learning between humans, machines can increase AI benefits

Only 10 per cent of organisations are reaping significant financial benefits from their use of AI, according to a study by MIT Sloan Management Review, BCG GAMMA and BCG Henderson Institute. The research found that promoting mutual learning between humans and machines can dramatically increase those benefits.

5. Global AI software market to reach $37 billion by 2025

Forrester predicts that the global AI software market will reach $37 billion by 2025, and AI in business apps will become the norm after 2023, although AI software revenues will account for less than 3 per cent of the overall application market.

6. AI use for underwriting loans set to skyrocket

By 2025, AI underwriting platforms will have been used to support $315 billion in unsecured loans, compared to $24 billion in 2020, Juniper Research predicts, noting that growth is being driven by “lenders seeking to leverage AI to rebuild and streamline their lending operations, following the dramatic impact of the pandemic.”

7. Job disruption will drive need for reskilling for AI, data, cloud computing work

A “new division of labour between humans and machines” will disrupt 85 million jobs across 15 industries by 2025, according to research by the World Economic Forum. This will require reskilling for more work focused on data and artificial intelligence, content creation and cloud computing.

8. AI chipset market to grow by 45.2%, reaching $91.2 billion by 2025

According to Valuates Reports, the AI chipset market is expected to reach nearly $91.2 billion by 2025, compared to $6.6 billion in 2018 – a compound annual growth rate of 45.2 per cent.

9. Organisations could meet nearly half of emissions targets with help of AI

AI-powered use cases for tackling climate change could help organisations achieve up to 45 per cent of their Economic Emission Intensity targets set out by the 2016 Paris Agreement under the United Nations Framework Convention on Climate Change, a study by the Capgemini Research Institute finds.

10. Healthcare adopting AI for efficiency, but worries about costs

Healthcare organisations adopting AI say their top reason for doing so is to make processes more efficient (34 per cent), while their top concern is how much AI technologies cost (35 per cent), according to research by the Deloitte AI Institute and the Center for Technology, Media and Telecommunications.

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