The artificial intelligence market may not be as hot as it looks.
Most, but not all, investments in AI will be wiped out as the market consolidates, according to a new report on the future of the artificial intelligence market.
The vertical sectors of cybersecurity, automotive, healthcare manufacturing and finance and insurance are projected to thrive, reaching $24.8 billion by 2023, with cybersecurity leading that group with revenue of $7.2 billion.
The two major horizontal market segments are machine vision, projected to reach $14 billion, and natural language processing, expected to reach $15 billion, with much of those markets overlapping with other vertical segments.
Overall, the market will still have value, as the AI market globally reaches $39 billion by the end of 2023, though less previously expected, according to the forecast by Rethink Technology Research.
The report suggests that AI has yet to reach the point of bursting, but it is coming, considering the huge sums of money invested in it. The number of funding rounds a year for AI startups doubled to about 1,3000 from 2014 to 2017.
In the first quarter of 2018, funding of U.S.-based AI startups jumped 29% from the previous quarter, to $1.9 billion, across 116 deals, according to Rethink, noting that Google has stated that most of its $16 billion R&D budget was commited to artificial intelligence. AI investments are projected to add up to more than $100 billion a year globally this year.
The report states that artificial intelligence is the dotcom boom all over again. Time will tell.