AI Market Forecast: Top Trends That Will Affect AI in 2024

AI to cut costs and boost efficiency in diverse sectors

Looking ahead, AI's potential to drive innovation and efficiency in many industries is only set to grow.

One plus is the cost savings AI can create — according to a November report from Bank of America Global Research, AI will have a “mild-to-strong” positive financial impact on 75 percent of companies surveyed in the next five years.

In terms of project management, AI is assisting in tasks such as analyzing large data sets, offering more accurate predictions, automating services and tasks and providing sophisticated virtual customer support.

As businesses continue to adopt AI-powered solutions and technologies, analysts are expecting to see even greater advances in areas like healthcare. AI is assisting in breakthroughs in fields like neuroscience, genomics and biotech, and according to Statista, the market for AI in healthcare is set to reach around US$188 billion by 2030. Quantum computing in particular is playing a key role in advances as it allows for faster and more accurate analysis of large data sets, enabling researchers to map genes and brains and discover new drugs more efficiently.

In addition to its impact on healthcare, quantum computing is being used to tackle complex problems in climate modeling, making it easier for scientists to understand and predict the effects of climate change.

Tech heavyweights to pursue edge computing

According to research from Deloitte's tech, media and telecom division, the importance of edge computing will grow in 2024 as AI technologies become more prevalent and advanced. The shift toward edge computing could also lead to a focus on the semiconductor and hardware industries, beyond only graphics processing unit (GPU) makers.

Edge computing, which involves the processing and analyzing of data closer to where it is generated, will play a crucial role in enabling faster decision making and improved AI performance. The Consumer Electronics Show, which will be held in Las Vegas in January, is expected to showcase a range of AI-powered products.

“As organizations deploy newly developed AI applications, they will see in many cases the need for inference to happen at or closer to the edge, avoiding network latency,” Phillip Merrick, co-founder and CEO of pgEdge, told Solutions Review.

As the need for more sophisticated AI capabilities grows, so will the importance of a robust and secure supply chain for the semiconductors and chips that power these technologies.

The chip shortage has been a major challenge for the tech industry in recent years. “Every year, the demand for semiconductors and chips increases; meanwhile, countries are just waking up to the importance of growing manufacturing and safeguarding supply chains,” Naseem Husain, senior vice president and strategist for Horizons ETFs, explained to the Investing News Network (INN) in an interview.

Ongoing trade tensions between the US and China are expected to have a continued impact in 2024, as is the Taiwan election, which is set to take place on January 13. Taiwan is a key player in the global semiconductor industry, supplying chips to many of the world’s leading tech companies, including NVIDIA (NASDAQ:NVDA).

NVIDIA is the clear leader in the chip market, with a strong presence in AI and other emerging technologies, and the company has also developed edge computing solutions based on its GPU technology.

Investor takeaway

The future of AI looks promising, with significant growth expected in the generative AI market. The adoption of AI by enterprises is set to increase, leading to more advances in areas like healthcare and climate modeling.

“In an emerging industry, competition is a critical part of the story,” Husain told INN. “In 2023, we saw many new entrants arrive into the AI arena — many of which are the product of established technology companies. While it’s a race to see who can develop the best AI technology, it will also be a matter of which product has the greatest consumer potential. I would look to see not just who is fielding the most impressive technology, but who is offering a vision for how their AI models can transform the lives of individuals for the better.”

While there may be some concerns surrounding AI, the opportunities it represents can’t be denied. As AI evolves and improves, its impact could lay the foundation for even more exciting innovations.