The state of things with artificial intelligence implementation is positive only in developed countries. Here, investing is available, and it’s purposefully spent on testing the new innovative technologies. The US, Europe, and China share the lead in this battle for high-tech business solutions and market expansion. In the end, due to their common efforts, the popularity of machine learning engineers and data scientists has raised to 76% in 2021.
When it comes to types of machine learning, the range of their usage varies from data analytics, speech recognition, natural language processing, computer vision, and predictive analysis. All these machine learning algorithms are aimed at replacing manual routine with smooth automation, better customer service, and efficacy. As a result, the fledging artificial intelligence projects have gained $36bn investment in 2020 and already outperformed this result in the first half of 2021 — $38bn. The boost of these technologies is expected to scale in the coming years, and experts approximately estimate it by $126bn till the end of 2025.
No wonder why a lot of businesses have recently shown the support of AI/ML initiatives, and their budget bid is also raised tremendously by 83% of organizations. So, do you feel that it’s your turn to disrupt your business with cutting-edge technologies? Read on to find out how!
Artificial Intelligence in Business: Why Is Machine Learning Important?
The application of ML algorithms in the business sphere is subject to clear-cut goals, though the main idea is to stir the company’s progress and market dominance. Let’s specify the role of AI in business in more detail:
- Service support. Relying on voice assistants and chatbots, you can supply your customers with the straightaway reply rate — minutes for getting the answer instead of making them wait for hours before it happens. In this way, the newbies are quickly placed to onboarding and remain interested in the particular service provider.
- User customization. Thanks to behavioral patterns learning, you can shape your marketing forecasts based on your target audience’s needs or disappointments. AI technology allows collecting and processing a large amount of data faster and more conveniently. Better spend your time on creating a more personalized customer experience.
- Manual processes automation. Isn’t speed is the crucial factor while we’re speaking about the business operation? Process control and optimization are the valid motives for turning your attention to AI and ML. Replace your time-consuming manual tasks with the proper automation and online format, and your business productivity will tangibly grow!
- Accurate bookkeeping. Artificial intelligence software is your key to analyzing big data and coming up with detailed reports, especially finance-related ones. Accounting can be advanced too, so why not embrace modern technology for your profit?
- Account verification. That’s the first stage of the user security policy that allows gathering the real customers around your service/product. What’s more, AI does it way more effectively by reducing the probability of error and further data breaches. And if considering that 95% of data attacks occur because of human errors, the use of AI appears a smart user privacy solution.
Though this list can be extended, we’ve named the main reasons why modern businesses use AI and ML and what they expect to get from it, and now it’s time to realize the scope of their implementation.
ML vs AI: Latest Statistics to Get Familiar
Today is roughly the moment when the first half of the year is gone, and for now, investors have put $29.5bn in AI startups, which gives a hint on how much does artificial intelligence cost on a worldwide scale. At the same time, further industry development is almost likely to climb the statistics, whereas big tech vendors will be able to tailor the user-specific products and revolutionize the user experience.
If you assume that the COVID-19 pandemic has lowered the demand for different types of AI, you’re wrong. In fact, despite the economic crisis post-effects, the coronavirus even increased the product value of ML by 27%. Besides, the weight of research on AI technology has also got bigger, and the number of AI-related academic publications confirms this thesis. Among the countries that continuously invest in AI research, the US (19.2% of papers), China (15.6%), and the European Union (17.2%) are top players, and these are the cases we’ll discuss further in this article.
In addition, while looking at the topic globally, the artificial intelligence companies that are ahead of the rest include IBM, Microsoft, and Samsung. These patent owners compel the ML innovations for the sake of their business prosperity and are the perfect examples to follow. Would you like to learn from the best? Go on with the developed countries' AI expertise and collect the kernels of wisdom for your business!
AI in Developed Countries: A Modern Approach
The United States
2020 was truly the year of the AI regulatory base establishment, and the US has played a pivotal role in this transformation. First came the guidance on when and how to supervise the use of AI in the private sector. The second big breakthrough was the White House’s executive order for AI apps, which goes with the attempt at distilling each AI use case from vagueness and industry violations. And the third was the National Science Foundation (NSF) investing in AI research — $160m for 8 new AI institutes in the country. All these events of 2020 laid the foundation for the 2021’s AI boom, which picks up speed every day.
Specifically, in 2021, Washington announced the decision to invest more than $6bn in AI-based projects, which doubles the sum devoted for contract obligations last year. Treating it as a part of the national defense strategy, a little while ago, Congress passed the bill aimed at funding several military AI initiatives. In this light, investing in AI and ML on the part of the government is a sign of the US' intention to gain dominance in the industry and compete with China that steps on its toes.
Moreover, as for the business sector is concerned, the US has shown a serious boost within the last 5 years. Namely, the most well-known American AI startups include UiPath, Nuro, HighRadius, Databricks, Tempus, Nuro, Tanium, Dataminr, XANT, Olive, and Indigo Ag. The majority of them base their business activities on robotic process automation, and the growing demand sustains their status on the market.
If minding the legislature difference between the US and Europe, you’ll totally understand why the European Commission (EC) is enacting own regulation base for AI use. Lately, President Ursula von der Leyen declared AI as the post-pandemic priority, which will entail further regtech and the Ethics Guidelines clarification. For the time being, the EC has already created 2 significant legislation pieces for controlling the activity of tech firms — the Digital Markets Act (DMA) and the Digital Services Act package (DSA). In short, the former mainly deals with competition issues among the tech companies so that to ensure fair and legal digital market conditions within the European Union (EU) countries. As a result, consumers access better and safer services, enjoy their overall user experience, and pay the appropriate price for services' perks. In its turn, the latter is more about the rules' compliance on how to use AI ethically, with no harm and intrusive advertising to users. Plus, the DSA is also responsible for calculating and mitigating the consequences of the AI implementation.
Speaking about the post-COVID realities, the European spending on AI was also substantial. The initial plan presupposed $10bn funding in 2020, while the pandemic somehow altered it. Nevertheless, according to the experts' prognosis, Europe should expect tangible growth at a 33% CAGR throughout 2023. We’ll see how it goes, but the European deployment of AI in cloud computing shows promise for meeting the set expectations. What’s more, the pandemic has also caused the European companies' interest in automation through AI to decrease the COVID-19 effects. In particular, 16% of EU-based firms have invested in this tech upgrade to take their service to a new level and retain their customer base. Here, Germany, France, and the Netherlands are in the lead, whereas the UK also gives rise to AI development with the powerful tech solutions by DeepMind and Ocado.
As Europe shares the belief that AI technologies are the remedy for the current economic downturn, the EU companies pave the way to more extensive adoption of ML, speech recognition, natural language processing, and other cutting-edge technologies. The financial niche wins first place here, while retail, eCommerce, and other digitally grounded businesses follow the trend as well. The differentiation between the countries isn’t proportional, and the bigger weight is placed on Irish and Maltese organizations (20% and 12% of application correspondingly).
Though Europe takes part in the legal establishment of AI, China is considered the key US competitor in the industry. To evoke your familiarity associations, we just name such famous startups' names as ByteDance, Douyin, and TikTok — all of them are of Chinese origin. The other important Chinese AI companies are SenseTime and Face++, which are also at the peak of the digital revolution thanks to image and video analysis, face recognition, remote sensing, advanced ML algorithms, and other high-tech features.
By the way, the fact that the 2021 World Artificial Intelligence Conference (WAIC) has taken place in Shanghai also confirms the Chinese impact in the sphere of AI research, development, and chip manufacturing. The country doesn’t even hide its goal to generate $160bn of annual revenue and $1.6trn in sales till 2030, which will allow it to get the victory in the AI championship game.
So, why does the US have the reasons to worry? First, China is famous for nurturing high-level local talent, and when looking at the expansion tendency in opening the new AI research departments and education programs, it isn’t surprising at all. Second, the country directs a solid amount of its venture capital in AI-related firms of local origin. In 2020, China was the first in the world in AI patents filing with a share of 48% of the world total. What for? The state realizes the need for users' trust and demonstrates the ethical AI implementation not to take the consumers away, and patents is a careful client-oriented perspective in this task. Currently, the US and EU fall behind this pace, but that also depends on the public perception of the technology. To be exact, 86% of Chinese customers favor AI-made decisions, while Americans and Europeans are more skeptical and cautious about the new technologies. All in all, the Chinese AI ecosystem appears to be a level higher more developed than the rivals' ones, which presently explains its digital market leadership.
Artificial Intelligence Solutions in Banking
No doubt, the fintech sphere is the world leader in the development of machine learning software. Thus, we, as the experts in this industry, decided to say the final words about AI from this very perspective. Today banks mostly implement AI in 3 main directions: conversational banking (customer support), fraud detection and risks mitigation, and underwriting. Furthermore, there’s also compelling evidence that AI helps to generate more revenue in the domain. That’s why the majority of digital banks are now eagerly leveraging the AI strategies to guarantee the frictionless UX: two-third of banks with $100bn+ in assets already do it, while almost half of banking providers with less than $100bn in assets are planning to try their hand at it very soon. Consequently, such a measure is believed to deepen the user engagement with the service and make the UX more customized.
Have some questions on which AI solutions the banking firms are widely using these days? Not sure what to select for your mobile banking platform? Dashdevs will readily help you with both consulting and tech solution realization! Contact us, and we’ll embrace the AI and ML technologies together for your project’s flourishing!