Since the earthquake caused by generative artificial intelligence two years ago, AI has suddenly become a topic of discussion among boards; a change in level that should invite us to approach AI differently, and to shift it from a technological concern to an economic one.
Until now, the AI market was segmented according to technological criteria: hardware, software and services, or deep learning, machine learning and natural language processing. Although relevant for CIOs, this segmentation quickly proved neither relevant for steering strategy nor for guiding investments. In short, knowing the average hardware or machine learning investment amounts of companies in your sector won't help you better manage your own.
This mismatch between analysis tools and decision-makers' needs is all the more problematic as the AI market is experiencing explosive growth. Projections by Sopra Steria Next indicate an explosive AI market, which should more than double by 2028, growing from 540 to 1,270 billion dollars*. In a nutshell, it's now that we need planning the deployment of AI.
From Tech to Use Cases
While knowing competitors' investments in certain technologies isn't really useful, knowing which use cases are performing well in your sector starts to become interesting. It appears then: it’s all about usage, about segmentation, about understanding these 1,270 billion dollars; and especially, where one positions oneself within it.
This gigantic market is segmented into 4 major types of uses. AI for Machines, which focuses on optimizing machines and factories through advanced simulation and digital twins; AI for Processes, which aims at optimization; AI for Humans, which includes knowledge management tools and virtual assistants; and finally, AI for Software, which concerns all stages of software development and IT operations.
So what? If we take the example of AI for Machines, once we know that it's expected to represent 26% of the global AI market by 2028, with an annual growth of 13%, and that it will mainly concern the manufacturing industry, energy, and defense, this already helps decision-makers in these sectors to justify and guide their investments.
It becomes crucial for leaders to embrace this new strategic vision. It is a strategic steering tool to align their investments with their priorities, and thus accelerate the adoption of AI on a large scale. Decision-makers who can grasp this will definitely be better equipped to navigate this new era.
*Figures taken from "Navigating the AI Era" by Sopra Steria Next