Worldwide artificial intelligence (AI) market will experience a compound annual growth rate (CAGR) of 21.4 percent. This growth is expected to take the market value from $81.3 billion in 2022 to $383.3 billion by 2030.
According to GlobalData’s thematic report titled “Artificial Intelligence,” the growth will be propelled by the surge in sensor data volume, the advancement of sophisticated deep learning models, the advent of generative AI, and the availability of specialised AI chips.
Despite the hype, artificial general intelligence (AGI), or the ability of machines to do anything that a human can and possess consciousness, is still decades away, according to Josep Bori, Research Director at GlobalData Thematic Intelligence.
“However, ‘good enough’ AI is already here, capable of interacting with humans, motion, and making decisions,” said Bori.
“For example, OpenAI’s GPT-3 and ChatGPT models can write original prose and chat with human fluency, DeepMind’s algorithms can beat the best human chess players, and Boston Dynamics’ Atlas robots can somersault. If this evolution continues, it could upend the labour-based capitalist economic model.”
The use of AI technology for facial recognition, propelled by ethical and political considerations, is expected to result in clashes in standards and regulatory approaches.
Such conflicts may eventually lead to the disintegration of the global AI supply chain, similar to what is happening in the semiconductor industry. In the end, more stringent ethical regulations may create geopolitical divisions within the global AI market, isolating countries from each other.
According to Bori, AI technologies like computer vision and generative language models heavily depend on high-performance AI chips. Therefore, the ongoing trade conflict between the US and China, which has resulted in the US ban on exporting AI chips and chip-making tools to China, will cause a significant upheaval in the competitive environment.
“China will lose its AI market dominance unless it can secure access to advanced chip manufacturing technology,” he said.
Despite the adverse impact of the ongoing trade conflict between China and the US on the global advancement of AI technologies, China is poised to maintain its leadership position in AI due to its prowess in AI software and IoT technology and its strides in low-end chip manufacturing.
Finally, Bori noted that China will face difficulties in the AI industry, particularly in the data centre and computer vision fields, unless it resolves its access to extreme ultraviolet (EUV) lithography technology, which is currently hindered by US sanctions, and can produce more potent and smaller chips using 5 and 3 nanometer nodes.
