$52.2 Billion To Be Spent Worldwide on AI Systems in 2021
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Enterprises are investing in artificial intelligence in a big way. According to IDC, from 2017 to 2018, worldwide spending on AI and cognitive computing went up by more than 50 percent in twelve months to an estimated $19.1 billion worldwide.
In fact, it’s predicted that cognitive and AI spending will grow to $52.2 billion in 2021 and achieve a compound annual growth rate of 46.2 percent over the 2016-2021 forecast period.
Research director at IDC David Schubmehl expands, "Interest and awareness of AI is at a fever pitch. Every industry and every organization should be evaluating AI to see how it will affect their business processes and go-to-market efficiencies."
In terms of industries, retail is expected to become the industry leader in AI spending in 2018, with $3.4 billion being invested in AI use cases such as automated customer service agents and expert shopping advisors. The second largest spending in AI comes from the banking industry, which will spend $3.3 billion this year on automated threat intelligence and fraud analysis.
AI to Create More Jobs Than it Displaces in UK
According to Mashable, a new PwC report predicts that AI and related technologies will displace 7 million jobs in the United Kingdom in the next 20 years. However, AI will also create 7.2 million new jobs in that time span.
“Major new technologies, from steam engines to computers, displace some existing jobs but also generate large productivity gains. This reduces prices and increases real income and spending levels, which in turn creates demand for additional workers,” says John Hawksworth, chief economist at PwC.
The report includes a breakdown of estimated job displacement by industry. Unfortunately, some sectors will be more affected than others. Areas with the largest net increase in jobs include health, professional, scientific and technical services, and education. On the flip side, manufacturing, transport and storage, and administration jobs will likely have the largest displacement.
Microsoft President Calls for Facial Recognition Regulation
Facial recognition is everywhere. We use it daily to unlock our smartphones and create animated emojis. However, it’s also used by the government for surveillance purposes without participants’ consent. In fact, there are currently no rules for any company developing or using facial recognition in the United States.
To combat this, one of the biggest names in facial recognition is calling for nationwide regulation, according to Futurism. Microsoft President Bradford L. Smith shared his thoughts in a blog post last week: “We live in a nation of laws, and the government needs to play an important role in regulating facial recognition technology.”
Microsoft isn’t the only company voicing the need for AI regulation. Employees at Google, Microsoft, and Amazon have called for positive action against the ways facial recognition has already been used in 2018.