The State of Applied AI: 2023 and Beyond

For the brave, there is a full report to be found via the McKinsey website (Technology Trends: Outlook 2022). For those who don't have time to wade through the almost 200 page thick report, we have summarized some of the key findings in 1 domain: applied AI. The researchers at McKinsey took into consideration such things as investment, research activity and news coverage to determine the top tech trends of this decade.

Europe needs to step up its game

The use of applied AI in the form of intelligent applications that solve classification, prediction and operational problems has seen increasing uptake in the past few years. Of the six world areas mentioned, Europe was finishing second last, right after the Southern Americas. Developed Asia on the other hand was mentioned as taking the lead.

Investments in applied AI will multiply with factor 100 this decade

Today, total investments in applied AI amount to $ 93,5 billion. That number will rise to approximately $ 10 to $ 15 trillion by the end of the decade. In the report, we found a list of the functions that will benefit most from this trend.

Functions most likely to profit from revenue increase due to AI:

1. Marketing & Sales
2. Product or Service Dev
3. Strategy & Corporate Finance

Functions most likely to benefit from cost decrease:

1. Service Operations
2. Manufacturing
3. Human resources

As Nemeon has already given considerable focus to the construction industry, we also give a few take-aways on where investments will probably flow in this area. Again, we made a top 3 (more elaborate numbers in the original report):

1. Autonomous machinery and robots
2. Computer vision enhanced safety procedures
3. 3D design optimization software

In case you want to know more - or want to talk about what we can do for your business, don't hesitate to reach out!