AI Will Not Be a Winner-Takes-All Market

The AI Revolution: Analyzing the Growth of Artificial Intelligence

Artificial intelligence (AI) has taken the world by storm, becoming the fastest-growing sector in terms of spending velocity. Despite the hype surrounding AI, data from the Enterprise Technology Research (ETR) shows that market activity and penetration for AI are aligning with the press hype. This rising tide is benefiting not only the hyperscale cloud players but also the lesser-known AI companies. In this Breaking Analysis, we dive into the AI market using spending data from ETR and insights from Jeff Jonas, an expert in AI technology and the founder of Senzing Inc.

AI’s Comeback Story

Looking at the spending profiles across different sectors in the ETR taxonomy, AI consistently ranked among the top four sectors with the highest spending momentum. However, during the pandemic, momentum across all sectors, including AI, decelerated. It was only after ChatGPT’s announcement that AI’s spending velocity started to increase again. Since then, AI has gained momentum and a larger share of the market.

Jeff Jonas on AI Progress and Market Expectations

When asked about separating genuine progress and applications from inflated promises in the AI market, Jeff Jonas expressed his belief in the rocket-like growth of AI. He compared it to the period after IBM Watson’s victory on “Jeopardy!” when billions of dollars were invested in the field. Jonas expects AI’s utility, particularly in large language models (LLMs), to be phenomenal but slightly overestimated. Nevertheless, he remains optimistic about the future of AI.

The Breakdown of AI’s Spending Momentum

Zooming in on the granularity of AI’s spending, we can see the different customer behaviors within the sector. New customer adds, increased spending, flat spending, decreased spending, and churn are represented by different colors. By subtracting the negative spending behaviors from the positive ones, we get the net percentage of customers spending more on AI, represented by the soaring blue line in the graphic. This net score has been on the rise since ChatGPT’s announcement.

AI’s Future Advancements and Impacts on Society

Jonas believes that the integration of diverse data is a significant advancement in AI. The ability to train AI models on various types of data leads to innovative breakthroughs and advancements in personalized medicine and climate change solutions. By connecting technologies like graph databases, LLMs, vector databases, and entity resolution, the integration of diverse data will accelerate progress in various fields.

Changing the Way We Interact with Data

The introduction of LLMs is expected to radically change how humans interact with computers. Jonas envisions a future where conversational entity resolution becomes the norm, allowing users to interact with AI systems using plain English. This means requesting specific data, understanding the connections between records, and receiving answers in a conversational manner. With this shift in human-computer interaction, the complexity of querying data, even in graph databases, will be greatly simplified.

Editor Notes: The Power of AI

Artificial intelligence has undoubtedly become a powerful force in today’s digital landscape. Its ability to analyze vast amounts of data, make predictions, and generate insights is transforming industries and enhancing human capabilities. However, while AI holds great promise, it’s crucial to manage expectations and distinguish between genuine progress and inflated promises. With advancements like LLMs and the integration of diverse data, AI’s impact on society will continue to expand, revolutionizing personalized medicine, climate change solutions, and more.

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