A massive Megatrend that’s only just beginning to reach into every part of our lives and industries
Is it all just technology hype? We are hearing a lot about Artificial Intelligence (AI) and the reality is that it’s finally begun to deliver on the promises, some made more than 60 years ago.
Is it all just technology hype? We are hearing a lot about Artificial Intelligence (AI) and the reality is that it’s finally begun to deliver on the promises, some made more than 60 years ago. Machine-learning systems however have recently demonstrated superhuman performance in domains as diverse as recognising objects in images, detecting fraud, diagnosing disease, security, and making recommendations to customers (chatbots). They are also the power behind applications like Google Translate (not a raft of linguists and polyglots). What AI will create and achieve into the future however is much, much more than we can imagine today.
$1.2 Trillion USD to $3.9 Trillion USD in just 5 years: Global business value from AI totalled $1.2 trillion USD in 2018, up 70 percent from 2017, according to Gartner Inc. who are forecasting $3.9 trillion USD by 2022.
“AI promises to be the most disruptive class of technologies during the next 10 years due to advances in computational power, volume, velocity and variety of data, as well as advances in deep neural networks (DNNs).” Source: Gartner.
Artificial Intelligence is a constellation of technologies, allowing machines to sense, comprehend, act and learn. The most basic form of AI called “narrow AI,” is a collection of technologies that rely on algorithms and programmatic responses to simulate intelligence, generally with a focus on a specific task. When you use a voice recognition system like Alexa to turn on the lights, that’s weak AI in action. Alexa may sound smart, but it doesn’t have any advanced understanding of language and can’t determine the meaning behind the words you speak. Strong AI in contrast, is intended to think on its own. These are systems built with the human brain as their archetype. Strong AI is designed to be cognitive, to be aware of context and nuance and to make decisions that are not programmatic in nature but rather the result of a reasoned analysis. AI-enabled factory floor initiatives typically must gather several million gigabytes of data each week in order to have enough analytical data to make reasoned decisions about what might happen in the future.
Case Study – Healthcare: Global consultancy firm Accenture predicts that the top AI applications may result in annual savings to the healthcare sector of $150 Bn USD by 2026. It is achieving this via efficiently diagnosing conditions, faster and earlier, as well as reducing misdiagnosis and lowering costs.
In 2015, misdiagnosing illness and medical error accounted for 10% of all US deaths. In light of this, the promise of improving the diagnostic process is one of AI’s most exciting healthcare applications. Incomplete medical histories and large caseloads can lead to deadly human errors. AI is immune to those variables and can predict and diagnose disease at a faster rate than most medical professionals, by drawing upon databases of millions of observations.
Businesses need help in utilising Artificial Intelligence. To date many companies have lacked the expertise and resources to take full advantage of AI. Machine learning and deep learning typically require teams of AI experts, access to large data sets, and specialised infrastructure and processing power. Companies that can bring these assets to bear then need to find the right uses for AI, to create customised solutions and then scale them effectively. All this requires a level of investment, knowhow and sophistication that takes time to develop and is out of reach of most businesses internally. Naturally they turn to outside assistance and capability.
Which Company and why? Insync’s identification of decade plus Megatrends with strong tailwinds is one major prerequisite in our search for excellent companies to invest in, wherever they reside. It is not enough to simply be operating within a Megatrend and understand the influences of disruption on their industry. They also need to be positioned well to benefit from it as a business, have the managerial and financial prerequisites for success, and a proven track record of achievement. To be a Future-focused enterprise is a must.
Few meet these strict requirements of enduring success. Insync is always searching for the one or two best firms in a Megatrend that meet these stringent criteria. In this particular instance, our investors are taking advantage of the AI Megatrend via what we believe to be the world’s best services firm to industries globally for AI.
For more information on other Megatrends, please visit Insync Funds Managers’ Website here.
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*The views and opinions expressed in this article are those of the author and do not necessarily reflect the views and opinions of Reach Markets.
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