Globally, the AI industry and the techniques it produces are expected to generate up to $5 trillion dollars in value, according to estimates from a McKinsey Global Institute (MGI) report. Given the major advantages of the increased usage of Artificial Intelligence can bring, it should come as no surprise that AI has been valued so highly.
Why is the AI industry worth so much?
As previously mentioned, the AI industry brings major benefits to a wide range of organisations, including huge economic advantages.
This is because AI allows for significant gains in performance and efficiency in many different industry sectors. AI techniques can also analyse, process, and learn this information at a much faster speed than humans, and with far greater accuracy.
In addition, Artificial Intelligence can be easily integrated into existing processes. That means the AI solution can ultimately reduce costs as it makes more accurate decisions through the improved use of information.
Examples of Artificial Intelligence already in use include designing video games that act more lifelike and in a completely different way. Other ways that AI is being used in insurance to better learn the risk of underwriting and claims, in finance to better understand risk and trends and even video conferencing to offer recommendations based on behaviour of participants.
We can also see applied AI being used across business practices in law, medicine, accounting, consulting, customer service and management.
How much is the AI industry worth in the UK?
The Artificial Intelligence industry in the UK has the potential to be worth a staggering amount. Estimates suggest that AI solutions could add a whopping £630bn to the UK economy by 2035.
Unsurprisingly, this means that a number of businesses are developing in order to meet demand. According to recent data, there are at the very least, 200 startups and small and medium-sized businesses developing products using AI in the UK.
Why does AI matter?
One of the major reasons that artificial intelligence matters is due to the enormous potential it has for increasing productivity at an exponential rate. This is particularly important for the UK economy, and for sectors that are feeling the strain of limited resources.
For example, a government report called 'Growing the Artificial Intelligence Industry in the UK' has outlined some of the areas with the capability of changing sectors to become far more efficient.
This includes health care. Areas that have been highlighted as having AI software potential include:
- Radiology and pathology via the use of imagining diagnostics
- Better tracking of possible pandemics
- Diagnostics to detect small variations in baseline health data of a patient, providing a more personalised treatment option
Another area that benefits dramatically from AI is the automotive sector. For example, autonomous maintenance of vehicles, saving time and money, or autonomous fleets, which would mean people could use the vehicle on an ad hoc basis without needing to own a car or having onerous paperwork to take care of.
It has also been discussed using AI to help improve overall efficiency in public sector services in the UK. For example, to process passports, visas, benefits and other licences processed by the government. AI enables these to be processed at a faster rate and with greater accuracy.