By Sudipta Choudhury - January 07, 2021 3 Mins Read
With the tech vendors merging AI into the existing software products, the market size will increase to $37 billion by 2025, claims Forrester.
Many technology companies are infusing artificial intelligence in the current solutions, and thus, the market is booming. According to the latest Forrester study, the AI-based software market will touch $37 billion by 2025 – excluding the hardware and consulting services.
Basically, the growth of AI applications will be constrained by vendors – primarily due to the embed AI functionality with greater frequency. Despite this, the overall artificial intelligence software market will drop below the recent investor estimation of $150 to $200 billion.
While the world sees increasing demand for AI as technology, applications, and platforms – its ubiquity will eventually make this technology conventional for software development. Some of the principal findings from the study are –
It is no secret that with more vendors adding such AI functions, the capability to charge a premium for advanced technology would be lost in the competition. Furthermore, the AI maker platforms that are used for designing highly customized solutions have the most substantial growth potential.
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This is also valid for AI facilitator platforms as well – which are used for applications including natural language virtual assistants, computer vision, and more. Some more AI market segments that are likely to mature are the AI-infused apps that create differentiated products via added AI functionality and AI-centric apps for specialized medical tasks.
As Andrew Bartels, VP and Principal Analyst at Forrester mentioned in the company blog post – “We believe investors are defining the AI market too hyperbolically. They are mistakenly including categories that are loosely influenced by or distantly adjacent to AI software.”
Lately, more business leaders are increasingly depending on AI and advanced tech as the principle of their digital transformation plan. As a result, they are most likely to expect their dealers to include AI functionality and no additional cost to the business.
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