Some Will Benefit from AI More than Others

Though there is as yet no consensus about the degree of artificial intelligence impact on various industries, many could agree that some industries will benefit more, either in terms of process cost reduction or operating costs; others less so. 

Probably nobody would be surprised if financial services wound up seeing direct benefits, as has been the case in the past. But many would guess that healthcare will be a bigger beneficiary from AI than has traditionally been the case for information technology  investments. 

As with so many other metrics, it appears connectivity services and data centers are somewhere in the middle of industries where it comes to the degree of process automation and improvement. 

Industry	Impact on Operating Costs	Reasons
Healthcare	High	AI can automate many tasks in healthcare, such as medical record keeping, diagnosis, and treatment planning. This can free up healthcare workers to focus on more complex tasks and provide better care to patients. AI can also help to reduce the cost of healthcare by improving efficiency and reducing errors.
Financial Services	High	AI can automate many tasks in financial services, such as fraud detection, risk assessment, and investment management. This can free up financial professionals to focus on more complex tasks and provide better service to clients. AI can also help to reduce the cost of financial services by improving efficiency and reducing errors.
Manufacturing	High	AI can automate many tasks in manufacturing, such as assembly line production, quality control, and inventory management. This can help manufacturers to improve efficiency and reduce costs. AI can also help manufacturers to produce higher quality products by identifying and correcting defects early on.
Retail	High	AI can automate many tasks in retail, such as customer service, inventory management, and fraud detection. This can help retailers to improve efficiency and reduce costs. AI can also help retailers to increase sales by personalizing the shopping experience for customers.
Transportation	High	AI can automate many tasks in transportation, such as driving, traffic management, and logistics planning. This can help transportation companies to improve efficiency and reduce costs. AI can also help transportation companies to improve safety by reducing human error.
Telecommunications	Medium	AI can automate many tasks in telecommunications, such as network management, customer service, and fraud detection. This can help telecommunications companies to improve efficiency and reduce costs.
Data Centers	Medium	AI can automate many tasks in data centers, such as server provisioning, cooling system management, and anomaly detection. This can help data center operators to improve efficiency and reduce costs. AI can also help data center operators to improve the reliability and security of their data centers.
Construction	Low	AI can be used to automate some tasks in construction, such as design and planning. However, the construction industry is very labor-intensive, and it is not clear how much AI can automate.
Agriculture	Low	AI can be used to automate some tasks in agriculture, such as crop monitoring and harvesting. However, the agriculture industry is very weather-dependent, and it is not clear how much AI can automate.
Education	Low	AI can be used to personalize learning and provide feedback to students. However, the education industry is very people-centric, and it is not clear how much AI can automate.

In many industries, process improvements are expected to provide the clearest and perhaps most-significant financial benefits. Perhaps more interesting are ways AI can boost revenue, even when AI does affect both operating costs by streamlining processes.

Industry	Impact on Core Business Models	Revenue Impact
Healthcare	AI is transforming healthcare by automating tasks, improving diagnostics, and developing new treatments.	Large: AI-powered systems can help healthcare providers improve efficiency and accuracy, while also reducing costs. This could lead to lower healthcare costs for consumers and businesses. AI could also lead to new treatments.
Financial Services	AI is being used to automate tasks, detect fraud, and make better investment decisions.	Large: AI-powered systems can help financial institutions improve efficiency and reduce costs, while also generating new revenue streams. For example, AI-powered chatbots can provide customer service and answer questions 24/7, while AI-powered trading algorithms can generate profits for financial institutions.
Manufacturing	AI is being used to automate tasks, improve quality control, and optimize production lines.	Large: AI-powered systems can help manufacturers improve efficiency and reduce costs, while also producing higher quality products. For example, AI-powered robots can perform repetitive tasks on assembly lines, while AI-powered quality control systems can identify defects in products before they reach consumers.
Retail	AI is being used to personalize shopping experiences, recommend products, and optimize inventory levels.	Large: AI-powered systems can help retailers improve customer satisfaction and sales, while also reducing costs. For example, AI-powered chatbots can provide personalized recommendations to customers, while AI-powered inventory management systems can help retailers avoid stockouts and overstocking.
Transportation	AI is being used to develop self-driving cars, improve traffic management, and optimize supply chains.	Large: AI-powered systems can help transportation companies improve efficiency and reduce costs, while also offering new services to customers. For example, self-driving cars could revolutionize the taxi and trucking industries, while AI-powered traffic management systems could reduce congestion and travel times.
Telecommunications	AI is being used to improve network performance, detect fraud, and develop new services.	Medium: AI-powered systems can help telecommunications companies improve efficiency and reduce costs, while also generating new revenue streams. For example, AI-powered systems can be used to optimize network traffic and detect fraud. AI can also be used to provide personalized recommendations for customers.
Data Centers	AI is being used to improve energy efficiency, detect anomalies, and automate tasks.	Medium: AI-powered systems can help data center operators improve efficiency and reduce costs. For example, AI-powered systems can be used to optimize cooling systems and detect potential problems. AI can also be used to automate tasks, such as provisioning and managing servers.

That differential pattern of impact has been seen in prior eras of information technology investment as well. Of course, the industry most affected by IT is the IT industry itself, which is the supplier of the platforms and tools. In other industries, the financial services industry virtually always ranks high on any list of IT adopters, early IT adopters and estimated IT impact. 

Industry	Revenue Impact	Operating Cost Impact	Reasons
Technology	High	High	Information technology is the core business model of the technology industry, so new IT has had a profound impact on revenue, as that is the primary product. Technology firms also are early users of IT in most ways.
Financial Services	High	High	IT enabled the development of new financial products and services, as well as new ways to deliver them. This has led to increased revenue for many financial services companies. Additionally, IT has helped financial services companies to automate tasks and improve efficiency, which has reduced operating costs.
Retail	High	Medium	IT has also had a significant impact on the retail industry. IT has enabled the development of new retail channels, such as e-commerce. This has led to increased revenue for some retailers. Additionally, IT has helped retailers to automate tasks and improve efficiency, which has reduced operating costs.
Telecommunications	Medium	Medium	IT has also had a significant impact on the telecommunications industry. IT has enabled the development of new telecommunications services, such as mobile internet and broadband. This has led to increased revenue for many telecommunications companies. Additionally, IT has helped telecommunications companies to automate tasks and improve efficiency, which has reduced operating costs.
Data Centers	Medium	Medium	IT has also had a significant impact on the data center industry. IT has enabled the development of new data center services, such as cloud computing and big data analytics. This has led to increased revenue for many data center companies. Additionally, IT has helped data center companies to automate tasks and improve efficiency, which has reduced operating costs.

As always, other industries, such as agriculture and education, have benefitted more modestly from applied IT.