Infocomm Infocomm
24th NBFC100 TECH SUMMIT AWARDS 24th NBFC100 TECH SUMMIT AWARDS
BFSI AI SUMMIT BFSI AI SUMMIT
Home Regulators RBI SEBI TechINFRA Security Data Centre Cloud Services Government Reforms DBT Aadhaar GST Payments Payment Gateways ATM Point of Sale Payment Wallets Fintech Apps Banks Public Sector Private Sector Cooperative NBFCs Year Ender Magazine Magazine Subscription Articles Interviews Webinars Webinar Videos Video Series — Innovation Talk Upcoming Initiatives BFSI Events About Us Contact Us

Artificial intelligence and Machine Learning revenues to surge past USD 47 billion by 2020

Artificial Intelligence

Artificial Intelligence (AI) has seen robust growth over a decade. AI which has a history of nearly 100 years is expected to continue its trajectory of high growth. In this article, we will look at a brief overview of AI, it’s market projection going forward and India’s planned initiative in the field of AI (as per NITI Aayog).

Artificial Intelligence

Advertisementgreylabs

What is AI?

Artificial Intelligence (AI) comprises of two words – Artificial and Intelligence. Artificial, as we know, which is not real, simulated or fabricated. On the other hand, Intelligence is a broader word, which expresses terms like the ability to understand, remember, learn, deduce, be creative and solve problems and likewise.

Advertisement24th Elets NBFC100 Tech Summit & Awards, Mumbai

Coming together, Artificial Intelligence is a program, assemblage of various technologies that enable the machines to sense, reason, adapt, learn, think and act with human-like intelligence to creatively and logically solve problems. These human abilities are amplified by the use of Machine Learning which is the ability to learn by experiences when faced with large data and by trial and error without any explicit instructions. The next level is the Deep Neural Network which is made of multi-layer networks that use a sophisticated mathematical model to process data in a complex way. 

AdvertisementInfoComm India 2026

Fabulous Forecast 

AdvertisementElets BFSI AI Summit & Awards, Mumbai

In 2016, the Worldwide Semi-annual Cognitive/Artificial Intelligence Systems Spending Guide from International Data Corporation (IDC) predicted the market for cognitive/AI solutions to experience a compound annual growth rate (CAGR) of 55.1 percent over the 2016-2020 forecast period to more than USD 47 billion in 2020. The same source, in a latest 2018 report, has predicted that the spending on cognitive and AI systems to reach at USD 77.6 billion in 2022, more than three times the USD 24.0 billion forecasts for 2018, at CAGR 37.3 percent for the 2017-22 period. 

The major chunk of growth is attributed to software (both cognitive applications and cognitive software platforms – personal assistants, chatbots, deep learning & machine learning applications etc) which is expected to reach USD 18.2 billion in 2020 and as per new report also, the spending will witness CAGR of 43 percent between periods of 2017-22. 

Sector-wise, banking, and retail will lead the revenue and spending in AI/cognitive initiatives. In the banking sector, nearly half of the amount would be spent in automated threat intelligence and prevention systems and fraud analysis & investigation while retail will thrust on product recommendations, expert shopping advisors and automated customer service agents. The next contributing sectors are discrete manufacturing, healthcare providers, and process manufacturing and education.

From a geographic perspective. North America (the US and Canada) will keep leading the growth followed by Western Europe, Japan, and China.

(Views expressed above are the personal opinion of the Prof. Krupesh Thakkar, CFA, Head of the Department – Financial Markets, ITM B-School. )

Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/

Get a chance to meet the Who's who of the Banking & Finance industry. Join Us for Upcoming Events and explore business opportunities. Like us on Facebook, connect with us on LinkedIn and follow us on Twitter, Instagram.

Our Coverage of Article

What is an instant personal loan and how can it help when you need funds quickly?

Unexpected expenses can arise when savings are not immediately sufficient. An instant personal loan can provide faster access… Read more →

DPDP and the AI Reckoning in India’s BFSI

Why the convergence of data-protection law, AI accountability, and consent architecture is the defining governance challenge for Indian… Read more →

AI Becomes the New Operating System for India's Banks and NBFCs

Over the past five years, artificial intelligence (AI) has evolved from a niche innovation to a strategic imperative… Read more →

Evolving Landscape of Inclusive Housing: Opportunities and Challenges

India’s journey in the space of inclusive housing finance over the past three decades has been transformative -… Read more →

Best Options Trading Platforms in India for Advanced Traders

Options trading demands more than a basic trading account. It requires a platform that understands the nuances of… Read more →

Cyber Resilience in the Age of AI

"There are only two kinds of organizations today - those that know they have been attacked and those… Read more →