AI’s Blistering Pace Of Innovation Revealed
The last year has been a true “iPhone moment” for AI.
You are witnessing the start of a truly profound change in the way of business and life.
The full scale and depth of the changes are unpredictable.
But there are a few sure things with AI…
It’s going to be massive.
It’s going to grow fast.
And fortunes will be made from it.
The key though is that it’s still early.
And that’s the part we’re going to focus on today because, according to one top tech company, it won’t be early for long.
Early Innings Of AI
It would be tough to find a better insight into the current state of AI implementation, than to those who are actually implementing it.
Big companies don’t do it themselves.
They hire big consulting firms to do it (usually to have a fall guy when things don’t go as well as expected and get sweet free tickets to pro golf tournaments).
One of those big tech consulting firms is Accenture.
Accenture publishes a regular report on AI and its adoption throughout most industries.
The report is called The Art Of AI Maturity.
The report is typical of consultants it represents.
It has plenty of non-quantifiable “big picture” stuff and is well short on specifics.
Looking at the report, however, two charts really show how the current deployment of AI.
Both charts are included below.
The first chart is a breakdown of four types of AI users.
Accenture defines them as Innovators, Achievers, Builders, and Experimenters.
The last one – Experimenters – is our focus.
Accenture describes Experimenters as companies without a strong AI foundation or a clear strategy for AI implementation.
The chart below shows the Experimenters group makes up 64% of companies:
That’s a relatively huge share of companies that still haven’t done much with AI.
It’s a clear sign that AI implementation is still early.
That’s good for investors.
Early is always good.
But the key right now and what could make AI different from past technological shifts is the speed.
That’s where the second chart from Accenture’s report comes in.
This chart shows the speed of different industries that will be implementing AI over the next couple of years.
Here’s the chart:
As you can see we’re likely at a true turning point for AI in many industries.
Most companies are in AI a little bit as “Experimenters,” but that’s going to change rapidly over the next two years.
The level of investment in incorporating AI is massive and growing.
Stanford University’s Institute for Human-Centered AI reported the total AI investment in 2018 was $80 billion.
It more than tripled over the next three years to $276 billion in 2021.
And, in less than optimal business investment conditions last year, it dipped to $190 billion.
Either way, at this rate trillions of dollars will be invested in AI and trillions will be made from AI too.
For investors it's an ideal situation.
There is major change coming, it’s still early, and it’s going to happen fast.
That’s why AI has all the makings of a major investment boom and possible bubble.