IDC Report Declares IBM #1 in Worldwide AI
According to IDC, IBM leads the Worldwide Artificial Intelligence Market.
Growing 35.6% to $28.1 billion, the artificial intelligence (AI) market experienced steady growth in 2018.
The International Data Corporation (IDC), the premier global provider of market intelligence and advisory services for the information technology industry, has produced an objective study of worldwide artificial intelligence market revenue for 2018.
Entitled ‘Worldwide Artificial Intelligence Market Shares, 2018: Steady Growth — POCs Poised to Enter Full-Blown Production,’ it finds amongst many other things that cost of the solution, lack of skilled personnel, and a bias in data have held organisations from more broadly implementing AI.
On the other hand, automation, business agility, and customer satisfaction are the primary drivers for AI initiatives.
In the past year, organisations worldwide have used AI in IT operations, customer service and support, finance and accounting, and ecommerce. They’ve similarly heavily invested in major redesigns to their business processes to maximise the ROI of AI.
Not surprisingly, the overall AI market is dominated by large vendors providing market offerings in the cloud and on-premises.
So who are they?
The main players
The vendors dominating the AI market include IBM, Dell, ODM Direct, Hewlett Packard Enterprise (HPE), Accenture, Inspur, Oracle, and Deloitte.
The rest of the market includes both incumbents and startups, such as Microsoft, Amazon Web Services (AWS), Google, Palantir, Wipro, EdgeVerve, Nuance, SAP, and OpenText. CognitiveScale, IPsoft, Expert System and several other smaller vendors are also continuing to grow and make their presence known in the market.
However, IBM plays across all the technology categories, with its share of AI market revenue divided across software, hardware, and services.
Hitting the top spot, IBM’s 2018 AI revenue grew 19.0% to $2.58 billion, up from $2.17 billion in 2017.
IBM: leading the field
From an AI services perspective, IBM is providing both IT and business services across a breadth of industries, stretching from retail supply chains to financial services and beyond.
The report goes on to explain how, in 2018, IBM introduced new Watson solutions and services pre-trained for a variety of industries and professions.
These included agriculture, customer service, human resources (HR), supply chain, manufacturing, building management, automotive, marketing, and advertising.
From an infrastructure perspective, IBM’s focus has been to provide a robust information architecture for AI, providing choice and flexibility.
In addition, IBM also released software tools that automatically detect bias and explain how AI makes decisions.
The key enablers for growth of the AI market
“IDC saw that organisations have been slowly moving from POC to full-blown production with the use of AI applications within the spectrum of business processes across the enterprise,” explains Ritu Jyoti, Program Vice President (Artificial Intelligence) at IDC. “The AI market is seeing significant growth in all the technology categories from software to hardware to services.”
The top AI application for IT operations is intelligent task and process automation.
For customer service and support, finance and accounting, and ecommerce, its chatbots and recommendation engines.
The key enablers for growth are adaptive intelligence applications, cloud services, automated machine learning (autoML), accelerators, and IT services.
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