ExplainerUC&C21 May 2019 · 6 min read

What is Artificial Intelligence? The $7.35 Billion Industry

Why AI matters: it is reshaping meetings, chatbots, customer service and cybersecurity for enterprises. Published on UC Today, with McKinsey and IoT.

Rebekah Carter

Artificial intelligence industry overview

Artificial Intelligence is a technology solution with the power to change the world.

Once the sole property of sci-fi writers and creative minds, artificial intelligence is now an increasingly common part of our professional and personal lives. We make purchases through virtual assistants hooked up to our phones and speakers. Our bots remind us when we have appointments and help us to manage our schedule.

In the business world, artificial intelligence even has the potential to take care of mundane tasks on our behalf, freeing up more time for us to be as intuitive and innovative as we like. It's no wonder that 72% of companies see AI as a crucial business advantage.

What is Artificial Intelligence?

Artificial Intelligence, or "AI," is a theory of computer science that emphasises the creation of intelligent algorithms capable of behaving and reacting like humans. Concepts built on artificial intelligence include everything from natural language processing to sentiment analysis. Through artificial intelligence, we can change the relationship that people have with machines.

In the communication landscape, artificial intelligence has made a significant impact on our conversations both with employees, and customers. There are tools available now that enable quicker communications between various departments in a business. Many messenger apps come with bots that can assist with retrieving contextual data, setting priorities, or establishing reminders. Some companies even give their employees access to virtual assistants that improve their day-to-day performance. Artificial intelligence personal assistants can also enhance meetings by taking real-time notes, transcribing conversations, and setting up communications.

Vendors are already experimenting with virtual assistants that can respond to a voice command to start a meeting, automatically translate languages between globally-dispersed workers, and more.

It's not just back-end communication affected by AI either. According to Pega, 38% of consumers believe AI improves customer service. In the contact centre, enterprises are relying on artificial intelligence to cleverly route customers to the right agents depending on their needs or problems. AI tools can also automatically record and transcribe conversations for compliance meetings, while still getting permission for GDPR purposes.

Within customer conversations, artificial intelligence can understand the sentiment in a client's voice and request the assistance of administrators and managers when needed. These services even have the potential to alert agents when a customer is at risk of churning.

Artificial Intelligence Trends

The statistics show that the artificial intelligence market is growing at a rapid rate. In 2018, the market was worth around 7.35 billion dollars. McKinsey estimates that AI has the potential to create between $3.5 and 5.8 trillion in annual value across 19 different industries. As more companies strive to take advantage of this growing space, we're seeing the arrival of new trends such as:

1. Advanced AI assistants

Consumers have enjoyed the benefits of AI assistants in their homes and smartphones for some time now. However, companies are beginning to see the benefits of these solutions too. According to Adobe, 71% of smart speaker owners use them daily. In the business environment, access to advanced AI assistants could help to boost productivity in various parts of the enterprise.

Your virtual assistant could take meeting notes and transcribe information for you. With a single voice command, you could launch a new meeting, schedule a conversation that aligns with you and your partner's calendar and more.

2. Confluence of IoT and AI

The Internet of Things is increasingly making its way into the communication industry. With connected devices, companies can improve the correspondence not just between their workforce, but among their entire workplace. Artificial intelligence paired with IoT and CPaaS solutions ensures that companies can update their business strategies by automatically setting devices to order new equipment and tools when stocks run low.

Your IoT system could automatically track the way that a person moves around your offline store and offer insights into how you can set up your retail strategy. The more data we can collect from IoT devices, the more intelligent our AI solutions will become, and the more we can use them to deliver enhanced customer experiences.

3. Better Conversational Bots

Chatbots have been boosting customer service solutions for businesses in a range of industries in recent years. You can order food and other products through a chatbot without ever having to interact with a human. As natural language processing becomes more advanced, consumers will be able to speak to bots just like they would talk to a human agent.

These advanced bots won't replace the human worker, but they will mean that professionals can spend more time on complex and creative problems, instead of repetitive, mundane tasks. They also ensure that companies can offer 24/7 service to an increasingly demanding marketplace.

4. AI Improves Cybersecurity

AI has already begun to change the way that companies interact with customers through sentiment analysis and natural language processing. Now, voice printing technology, voice biometrics, and other intelligent tools will help companies to protect themselves and their customers too. As fraud continues to be a common problem for many communication companies, AI will offer a way to authenticate customers and protect sensitive data.

AI could even help with compliance and privacy issues too. For instance, when a conversation begins that gathers sensitive customer information, an AI bot could automatically trigger a request for permission from the customer before the discussion continues.

5. Open Source AI

In the world of as-a-service technology, open access to AI that can be built into virtually any existing tool or strategy is becoming increasingly popular. Rather than buying a one-size-fits-all solution, companies will be able to implement the AI solutions they need into everything from their contact centres, to their messenger applications.

We're living in a world where technology is becoming increasingly open and accessible. Even smaller businesses will soon be able to implement AI to unlock and access information that they would otherwise lose. According to 61% of companies, AI is essential to identifying opportunities in companies that could easily be missed.

Artificial Intelligence Statistics

Artificial Intelligence is becoming more impressive by the day. The emerging technology is no longer just for large enterprises anymore. Companies everywhere are discovering the benefits of AI.

By 2020, 85% of interactions with customers will be handled without human involvement
80% of tech and business leaders say AI boosts productivity
97% of mobile users access AI-powered assistants
Smart speakers are the fastest growing tech segment in the world
Machine learning bots are better at lip-reading than humans
49% of consumers are willing to shop with businesses more frequently when AI is present
Businesses with over 100,000 employees are most likely to have an AI strategy
By 2020, 30% of companies worldwide will use AI in one of their sales strategies
41% of customers believe AI will improve their lives
AI boosts profitability in the workplace by up to 38% and will create up to $14 trillion in additional revenue by 2035
By 2020, 57% of consumers will want companies to know what they need before an initial conversation.
72% of business leaders believe AI will help humans to concentrate on more meaningful tasks
61% of businesses with AI strategies use them to find new opportunities
44% of consumers don't realise they're using AI platforms already
43% of millennials say they'd pay more for hybrid human-bot customer service
80% of businesses want to start using AI for customer service by 2020.