Whether for good or bad, new trends in technology often receive a lot of hype. The reason is that, when a new technology like the took-off, it rather made truly transformational effects. But some much-hyped innovations also flop spectacularly, which can leave investors skeptical when the buzz begins for the next ‘next big thing.’
In the case of , the investors would be wise to take the hype seriously. Artificial intelligence-powered tech is already all around us, with everyone from automakers to tech giants to data security companies using it to boost their business.
In case you are skeptical about investing based on the long-term growth potential of AI, consider these five ways the technology is transforming the around it.
The market is forecast to hit $15.7 trillion by 2030
According to a report from PwC, it estimates that artificial intelligence will add %15.7 trillion to the global economy about a decade from now. The analysts forecast that AI will make companies more efficient, and allow them to introduce new products across many sectors such as healthcare, financial services, marketing, manufacturing, communication, energy, and transportation. The cost savings from applying AI to older systems, and revenues from the new services and hardware, underlay that massive potential.
Though many are concerned because AI will eliminate jobs that are only half of the areas AI will impact the world in the future. While AI is on track to eliminate 1.8 million U.S. jobs in the coming years, it will also create 2.3 million, producing a net job gain, according to research firm Gartner.
Chipmakers can grow
Among the major important sectors of this growing technology, the semiconductor industry will be the main beneficiary. The chip market is expected to reach $91.2 billion just six years from now.
NVIDIA (NASDAQ: NVDA) may be one of the biggest winners. The company’s graphics processing units (GPU) are being used more and more by some of the world’s leading tech companies to boost their servers’ ability to process and speed information quickly. The pharmaceutical industry is using its computing power to help find new cures for diseases. And NVIDIA is systems to handle the complex data processing required by vehicles. The firm is already knee-deep into chips, and management believes that its total addressable market for them will reach $50 billion by 2030.
is integral to vehicles
are moving from science fiction to everyday reality, and the powerful chips mentioned above are integral to that transition. Self-driving vehicles using the of alphabet’s (NASDAQ: GOOG) (NASDAQ: GOOGL) Waymo subsidiary have already racked up 10 million miles.
The firm was one of the first to launch a limited commercial self-driving vehicle service last year Waymo plans to expand the service this year. It is also ways to use its vehicle tech to move freight, and could potentially license it out to other companies.
And Waymo is hardly the only company making significant moves in this . General Motors’ (NYSE: GM) vehicle subsidiary, cruise , plans to launch an ride-sharing service this year as well. Demonstrating just how serious GM is about the vehicle market, the company said recently that it would double its Cruise staff to about 2000 by the end of this year.
Based on HIS market prediction, in 2040, 16 percent of all new vehicles sold annually will be . This is why everyone from the automobile manufacturing sector to chips companies to the incumbent ride-sharing leaders is working on developing tech currently, because of its enormous benefits.
is improving data sorting
It is not all about cool new tech gadgets. The tech is also being used to make existing mechanisms more efficient. And in the case of data sorting, it can make it easier than ever to protect and share sensitive information.
Splunk (NASDAQ: SPLK), is a data security company that helps companies collect and categorize data using learning—a subset of . The company noted that it uses learning to “get deeper insights” from data than its customers could without it. This should allow them to glean the valuable information they need from the mountains of raw data they produce. Splunk’s learning services are already helping its customers, and with companies collecting and creating an ever-larger amount of data, such tools will only become more important.
is boosting the cloud-computing market
powers the cloud-computing services from some of the world’s biggest tech companies. Amazon, at 31 percent has the largest share of the cloud-computing market, uses learning and systems in a host of its cloud products. For instance, the company offers speed recognition and text translation services through Amazon web services (AWS). This matters because the cloud computing market will be worth $278 billion by 2021, and whichever company has the lead with its services will hold a clear advantage.
Meanwhile, Amazon is also embedding into almost all aspect of its retail business; among other things, learning helps the firm’s fraud detection and content personalization efforts.it is also used to analyze churn information, and it helps Amazon optimize its logistics. Altogether, helps Amazon to maintain its dominance of the U.S. e-commerce market, where it accounts for more than 50 percent of all sales.
The investors benefit
is already here and the market for the technology is growing quickly. So forward-looking investors should consider what the above companies are doing in this . Over the next few years, even more, businesses will be talking about how is transforming their and how they are tapping the technology to keep up with competitors.
Each of the major companies discussed above is already using to extend its dominance in its various business. Any of the companies that turn out to be the biggest winners, the level of patriotism to by them should put give the answer on any suggestion that is just an overhyped tech fad.
Originally posted 2019-04-16 15:56:25.
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