Saturday, October 21, 2023

AI is Overhyped, But Nobody Wants to Bet Against It

Is AI overhyped? Certainly. But that is a different matter from expectations of huge value. It is only suggestive, but add up the 2023 estimated value of several key types of technology, and compare it to what might happen by 2030. The revenue upside noted in the studies shown above would be in the neighborhood of $10 trillion annually. 


Technology

Estimated revenue in 2023 (USD billions)

Estimated potential impact of AI on an annual basis by 2030 (USD billions)

Study name, date of publication, and venue

Personal computing

1.5 trillion

5.3 trillion

The Economic Impact of Artificial Intelligence: Evidence from Patent Data (2021, Science)

Cloud computing

500 billion

1.2 trillion

The AI Economy: Opportunity, Risk, and Renewal (2021, McKinsey Global Institute)

Internet e-commerce

5.5 trillion

10 trillion

The Future of Commerce: How the Rise of AI is Changing the Way We Shop (2022, Forrester Research)

Search

200 billion

300 billion

The Impact of AI on the Global Search Market (2023, Gartner)

Social media

150 billion

250 billion

The AI Social Media Revolution (2023, eMarketer)


Apparently, nobody yet has suggested that artificial intelligence will have negative productivity effects; will fail to produce innovation, new firms, new products or enhance the value of existing industries, firms and products.


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