2022 was a great year for artificial intelligence (AI), with the market seeing record funding, innovation, and adoption. Last year alone, artificial intelligence companies received over 1.35 billion in venture capital. That’s more than the industry has recorded in the last five years. As such, many AI and analytics experts predict that the global retail AI market will grow by a 36% CAGR by 2026.
With the huge investments made in the AI market, we are witnessing exponential growth this year. Even better, the value and benefits of artificial intelligence are becoming clearer to businesses across various industries from data collection to healthcare and hospitality. Here are several transformational AI trends that are shaping the future of businesses in 2023.
- Rapid Democratization of AI Innovations
Until recently, AI was dominated by global juggernauts like Microsoft, Google, Amazon, and IBM. Developing AI innovations were too complex and costly for individuals and small companies to participate in. However, the open-source revolution of artificial intelligence has changed all that to usher in the democratization of AI, making the technology available to everyone.
The open-sourcing of AI generative models has already started happening. In 2022, Hugging Face unveiled its first community-built, multilingual language model known as BLOOM. Lensa, Stable Diffusion, and other open-source models have also brought explosive innovations to the market, rivaling Open AI.
The growing popularity and success of these startups are reducing the barrier to the entry of small companies and individuals looking to experiment with AI. That’s making the technology less exclusive than it was five years ago. Because of that, the artificial intelligence market will experience a significant surge in innovation in 2023.
- More Collaborations Between AI and Humans
In a world where AI-based computers can handle all types of tasks from writing movie scripts to helping you customer services, it’s tempting to look forward to the day robots will take out jobs. In the iGaming market for instance, AI-based tools are helping the best online casinos at TopAustralianGambling.com boost their customer experience. These tools can analyze the customer behavior to offer suggestions and offer an interactive experience through bots.
AI algorithms are utilized to analyze vast amounts of data, providing valuable insights into player behavior, preferences, and patterns. Meanwhile automation has been a low-level threat to blue-collar jobs in customer service and manufacturing and AI promises to keep disrupting other industries. However, market experts believe that the ongoing fear of being replaced by artificial intelligence will be short-lived.
Even with advanced capabilities such as speech recognition, facial recognition, and language generation, that’s still not a sign of real intelligence. As such, AI is still far from replacing human intelligence in the workplace. Instead, companies are embracing AI and increasing their collaboration with humans to boost their productivity.
Essentially, combining human intelligence with AI will give businesses customized strategies for a better experience. That’s also true with generative AI, both images and text. While AI generators have received their fair share of praise and criticism from the art and design community, many artists are leaning towards this new technology and using it to get inspiration for their work.
- Generative AI Improves a Notch
Generative artificial intelligence is one of the hottest trends in AI, with OpenAI’s ChatGPT spearheading the movement. ChatGPT’s ability to mimic natural language has gone beyond what was previously seen as possible in the AI industry.
Looking ahead, 2023 seems to be a year where the mass adoption of generative AI technology takes off. Many businesses are already looking closely into the use cases of generative AI and the ways it can help their business. Now, almost every business is thinking of how they can integrate this technology into their products or services as part of their go-to-market efforts.
The increased adoption of the technology will also make generative AI products become more secure and ethical, otherwise, businesses won’t work with them. However, companies are starting to warm up to the idea of learning how they can approach the technology.
- Heightened AI Market Regulation
For years, the AI market has been like the wild west with almost no government regulation to manage its use and development. However, that’s all starting to change as lawmakers and regulators spent the better part of 2022 sharpening their claws.
Governments across the world have been developing frameworks to guide AI oversight. In the US for instance, President Joe Biden’s administration unveiled an AI “bill of rights”, stipulating all the guidelines on limiting surveillance and protecting people’s data. The Federal Trade Commission is also closely monitoring how businesses are collecting data and leveraging AI algorithms.
Apparently, AI regulation is growing on the local and state level. Over a dozen US cities including Boston and San Francisco have already banned the use of facial recognition software in government offices. The EU has also boosted its AI regulation efforts and the parliament is set to vote on the proposed artificial intelligence act later this year.
- The intersection of AI and machine learning with the Internet of Things
With today’s devices, digital services are becoming smarter and secure more than ever with the introduction of ML and AI. According to market experts over 80% of IoT projects run by corporations will feature ML and AI by the end of 2023. As such, all devices need to have an internet connection to respond efficiently in any situation depending on the information gathered.
The intersection between AI and IoT has proven effective in smart homes, cities, and wearable devices, including smartwatches, health monitoring apps, and bracelets. IoT is also effective in smart cities as they’re helping create a comfortable environment by maintaining safety and order. In the industry sector, AI and ML are simplifying how businesses analyze the information required to optimize different activities from logistics to the supply chain.
