The rapid expansion of Artificial Intelligence (AI) is one of the most significant and disruptive technological advancements in recent memory. With its ability to simulate human intelligence, AI has demonstrated its potential to revolutionize nearly every industry on a global scale. The exponential growth of the AI industry will continue in the 2020s and 2030s as growingly businesses and individuals start recognizing the benefits of AI. According to the Gartner 2020 CIO Agenda Survey, 40 per cent of I&O teams will implement AI-augmented automation in large enterprises, resulting in higher IT productivity with greater agility and scalability by 2023. This growth is driven by factors such as the increasing availability of data, improvements in computing power and algorithms, and the need for businesses to automate tasks and make better decisions. 

As per NASSCOM’s report on the AI Adoption Index, investments in India’s AI capabilities are growing at a CAGR of 30.8 per cent and are poised to reach $881 million by 2023. Every year, AI capabilities significantly advance, and eventually, it will get to the stage where it will become the most revolutionary technology in human history. As we continue to scale AI innovations, several key trends will shape the AI industry in the coming years:  

• AI will impact commerce through personalization:  

With AI, businesses will have the power to gather and process massive amounts of data more efficiently than ever before, allowing them to understand their customer's needs and preferences. As a result, it will enable businesses to create highly personalized shopping experiences for each customer, which could lead to significantly higher conversion rates and customer loyalty. 

AI will have a more significant impact on eCommerce by automating the majority of the tasks currently performed by human workers. For instance, AI can easily automate customer service tasks such as product recommendations and order processing. As a result, it could free human employees to focus on more strategic tasks or even allow businesses to operate with fewer employees overall. 

• AI will revolutionize manufacturing:  

According to IBM research, the integration of AI in commerce and manufacturing will increase from 40 per cent to 80 per cent within three years. There is no doubt about the fact that the impact of AI on manufacturing is already evident. With factories starting to rely on bots and Machine Learning to automate production line processes, the sector is currently undergoing a significant transformation. 

• Enhanced technology to drive innovations:  

The technology behind AI is constantly improving, making it more powerful and streamlined. In the 2020s and 2030s, we can expect rapid progress in this area, allowing AI to handle even more complex tasks. Moreover, AI has already become the growth driver of emerging technologies like big data, robotics, and the IoT and will continue to act as a technological innovator for the foreseeable future.  

• Increased investments:  

As per Deloitte India’s second edition of the ‘State of AI India’ survey, organizations planned a 50 per cent increase in investment last year, which follows the increased demand for AI. The extra funding will allow companies to develop their AI offerings further and bring even more innovative products to market. 

The rapid expansion of the AI industry is primarily driven by increased spending on cloud-based AI services. There are several reasons why businesses are increasingly turning to cloud-based AI services. Firstly, the pay-as-you-go model offered by many cloud providers means that companies will only pay for the resources they use rather than invest in expensive hardware and software upfront. Secondly, cloud resources' scalability means businesses can quickly scale up or down their AI capabilities as needed. Finally, the flexibility of cloud platforms enables businesses to try out new AI technologies without having to make a long-term commitment. Despite the clear advantages of cloud-based AI services, some challenges still need to be addressed. For example, not all businesses have the technical expertise required to take full advantage of cloud-based AI services and face data privacy concerns from storing sensitive data in the cloud.  

Technology has become such an essential part of everyone’s lives that the way we work, shop, learn, communicate, and travel has changed a lot. AI is booming like never before in today's world which has profoundly transformed all industries with its adoption. As a result, there is likely to be greater regulation, ensuring that AI is used responsibly and safely to protect businesses and individuals. Furthermore, it can take on highly monotonous, repetitive, or dangerous tasks and free the human workforce to work better. With so many developments, looking ahead at what the future holds for AI can be fascinating.  

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