Europe’s world-leading artificial intelligence rules are facing a do-or-die moment.
The EU’s AI Act is facing a make-or-break moment as negotiators try to hammer out the final details this week. The talks are complicated by the sudden rise of generative AI that produces human-like work. The EU’s three largest economies, France, Germany, and Italy, are pushing back against the AI Act, advocating for self-regulation. The AI Act is proving to be the thorniest issue for EU negotiators because regulating foundation models “goes against the logic of the entire law,” which is based on risks posed by specific uses. Source
American Businesses Love AI, But Consumers Are Wary
A recent survey by Bentley University and Gallup found that Americans are generally distrustful of how businesses will use artificial intelligence (AI) in the future. Only 21% of respondents said they trust businesses to use AI responsibly, while 79% said they do not.
This distrust is likely due to concerns about job displacement as well as the potential for AI to be used in harmful ways. For example, 75% of respondents believe that AI will decrease the number of jobs in the United States over the next 10 years.
Despite these concerns, American businesses are rapidly adopting AI technologies. Goldman Sachs Research estimates that U.S.-based AI investment could approach $100 billion by 2025.
This poses a challenge for the American business community. If businesses are not careful about how they implement AI, they risk losing the trust of consumers and employees.
Here are some key takeaways from the survey:
- Only 21% of Americans trust businesses to use AI responsibly.
- 75% of Americans believe that AI will decrease the number of jobs in the United States over the next 10 years.
- Only 1 in 10 American adults believe AI technologies do greater good than harm.
- 79% of respondents believe that AI technologies perform worse than a human at recommending medical advice, driving a car, and recommending which employees a company should hire.
The American business community needs to carefully consider these concerns as they develop and implement AI technologies. If businesses can strike a balance between innovation and responsibility, they can help to ensure that AI is a force for good in society.source
Artificial Intelligence Software Market to Reach $307 Billion by 2027
A recent forecast from International Data Corporation (IDC) shows that the worldwide artificial intelligence (AI) software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4%. This growth is being driven by businesses’ increasing need for AI solutions to automate tasks, improve efficiency, and gain a competitive edge.
The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software. However, it does not include Generative AI platforms and applications, which IDC recently forecast will generate revenues of $55.7 billion in 2027.
The largest category of AI software is AI Applications, which includes collaborative, content workflow and management, enterprise resource planning (ERM), supply chain management, production and operations, engineering, and customer relationship management (CRM) applications. AI Applications is expected to continue to be the largest category of AI software in 2027, but its revenue growth will trail the overall market with a five-year CAGR of 21.1%.
The second largest category of AI software is Artificial Intelligence Platforms. AI Platforms facilitate the development of artificial intelligence models and applications, such as intelligent assistants that can mimic human cognitive abilities. AI Platforms is expected to be the fastest-growing category of AI software over the 2023-2027 forecast period, with a CAGR of 35.8%.
A recent IDC survey found that, in the next 12 months, roughly a third of respondents believe that organizations will prefer to buy AI software from a vendor or use in-house support alongside vendor-supplied AI software for specific use cases or application areas. This indicates a growing demand for AI solutions and highlights the need for customized approaches based on individual business requirements.
The momentum behind investments in AI and automation technologies remains unwavering despite economic uncertainty and shifting market dynamics. Businesses are realizing that utilizing cutting-edge technology is not only a strategic necessity but also a crucial factor in achieving long-term success. Despite potential challenges and risks, organizations are confident that adopting AI will continue to be crucial for future proofing their business operations and remaining ahead of the competition,” said Raghunandhan Kuppuswamy, research manager, Artificial Intelligence and Automation Research at IDC.
Key takeaways:
- The worldwide AI software market is expected to grow to $307 billion by 2027.
- AI applications is the largest category of AI software, but its revenue growth will trail the overall market.
- AI platforms is expected to be the fastest-growing category of AI software over the 2023–2027 forecast period.
- Businesses are increasingly demanding customized AI solutions based on their individual needs. source
Conclusion
Ultimately, as we navigate the intricate tapestry of AI dilemmas, from trust challenges to global growth and market dynamics, one thing becomes clear: the future demands a delicate dance between innovation and responsibility. By embracing tailored solutions, businesses can not only thrive in the AI era but also lead with integrity, ensuring a future where technology is not just powerful but truly empowering for all.
For more insights and daily updates on the ever-evolving world of AI, stay informed with Arcot Group, your reliable source for the latest in AI news and developments
