Artificial Intelligence: what consider?

Artificial Intelligence: what consider?

Artificial intelligence is attracting increasing volumes of corporate investment. As technologies develop and begin to have a wider impact, the potential value that can derive from it is bound to increase.

PricewaterhouseCoopers estimates that AI’s ​​will account for a share of the global economy of up to 15.7 trillion US dollars by 2035. At the same time, according to estimates by McKinsey & Company Consultants, AI techniques should be able to generate a worth of between 3.5 and 5.8 trillion US dollars per year in nine operational functions throughout 19 sectors. In the financial services sector alone, the application of machine learning could result in a cost reduction of 1 trillion US dollars by the year 2030.

To assess the capabilities investment potential, analysts have stressed focusing on three areas: creation of value, realisation of value and defensibility.

Creation of value. What is the customer’s specific problem? How much value does your solution generate and how many similar customers are needed to create a total available market, in other words, the total market demand for the product or service?

Realisation of value. What does the company think about the return on investment? How easily can the technology be adopted internally by employees and externally by customers? Does the company have adequate problem-solving data? Does the solution require additional infrastructure tools (for example, adding sensors to collect data)? Is an operating flow change necessary?

Defensibility. Can someone else come into play and affect a niche? Are the data proprietary? Are the data public? Can someone else come into play and create the same algorithms? What is the degree of fungibility of said data? Are there network effects? Does the new data (for example relating to a new customer) improve the algorithm?