“The global artificial intelligence market size is projected to expand at a compound annual growth rate (CAGR) of 37.3% from 2023 to 2030. It is projected to reach $1,811.8 billion by 2030.”
“90% of leading businesses already have ongoing investment in AI technologies.”
Are you thinking about jumping on the AI bandwagon just because of these impressive numbers? Hold on! Don’t adopt AI just because everyone else is doing it. It’s important to look for the real business value that AI can bring to your organization. Here’s why you should have a quick glance at this article.
In today’s fast-paced digital world, AI is everywhere, sparking conversations from boardrooms to tech forums. But as businesses jump on the AI bandwagon, a critical question arises: Is AI just a fad, or does it truly deliver real, measurable business value? Many companies are adopting AI just to stay current without even fully understanding its potential. However, many firms recognize its true potential for business transformation, improving efficiency, generating new opportunities, and driving business growth.
Beyond the Hype: How AI Delivers Real Business Value
Amid all the buzz surrounding AI, its real benefits can be realized through thoughtful, long-term adoption. The business value of AI includes, but is not limited to: automation of repetitive and time-consuming tasks, increased efficiency, cost reduction, data-driven enhanced decision-making, improved customer experiences, personalization of services, and ease of scalability.
Here are a few key impacts of AI on business:
AI is expected to contribute $15.7 trillion to the global economy by 2030, more than the current output of China and India combined.
A McKinsey report states that AI could potentially deliver an additional economic output of around $13 trillion by 2030; which is close to the forecast by Forbes mentioned above.
PwC research found that AI would drive greater product variety with increased affordability, attractiveness, and personalization leading to 45% of total economic gains by 2030 coming from product enhancements, stimulating consumer demand.
Automotive and Assembly, Chemicals, High Tech, Oil & Gas, Retail, Travel, and Transport & Logistics are the industries that have above-average potential based on AI’s contributions.
A McKinsey report mentions that using Gen AI even in just a few functions could drive most of the technology’s impact across potential corporate use cases, as seen in the figure below.
According to another McKinsey report, companies have observed meaningful cost reductions from generative AI use in HR and revenue increases in supply chain management.
By 2025, the wearable AI market is expected to reach $180 billion.
By 2027, the global AI chip market size is set to reach $83.25 billion with a CAGR of 35% during 2019-2027.
It is expected that the self-driving car market is set to increase from 20.3 million in 2021 to 13.7 billion by 2030. It is forecasted that 10% of vehicles will be driverless by 2030.
AI is creating a meaningful impact in the healthcare segment by helping in research, drug discovery, diagnosis, treatment, and decision-making. AI in drug discovery is expected to cross $4 billion by 2027 at a CAGR of 45.7%.
The manufacturing industry is forecasted to gain $3.78 trillion from AI by 2035, as per Accenture.
For global banking, McKinsey estimates that AI technologies could potentially deliver up to $1 trillion of additional value each year. Banks are increasing the use of AI technologies to improve their back-office processes and customer experiences.
52% of telecommunications organizations utilize chatbots to increase their overall productivity.
Major Industries to be impacted by AI
To maintain accurate and error-free data, 48% of businesses are optimizing the use of machine learning (ML), data analysis, and several other AI tools.
According to Forbes Advisor, 64% of business owners believe AI improves customer relationships and thus helps in enhancing client interactions.
According to a Forbes article, AI is facilitating the next generation of frameworks for new product development that reduce time-to-market while improving product quality and meeting customization requirements.
According to PwC, AI-intensive sectors are showing a productivity surge.
As per another McKinsey research, AI could increase corporate profits by $4.4 trillion a year. This research covered 63 use cases in which Gen AI is set to boost productivity in many ways such as, but not limited to, creating marketing content, enhancing customer interactions, and writing software code from natural language prompts. Compared to traditional technologies, the productivity value of using AI can increase from 15% to 40%.
Do you still think AI is just a fad?
You name it, and AI can likely enhance it – that's the true essence of its business value, be it any industry or any functional area. From streamlining operations to driving innovation, the possibilities of AI are endless.
Is your business ready to move beyond the AI fad and tap into real growth potential? Let’s connect and unlock the potential together!
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