Consumer Applications Are the Largest Market Segment for Artificial Intelligence

Even as research and investment into artificial intelligence (AI) have gone through some 60 years of booms and busts, consumers' fascination with the technology persists. But it is with the recent rise of digitization, Big Data, improved algorithms, and processing speed that consumer applications of AI have begun to emerge into the mainstream. From movie recommendations to search engine queries, AI and, more specifically, deep learning are powering a range of applications that have recalibrated consumer expectations for the digital lifestyle. According to a new report from Tractica, consumer AI now accounts for the largest portion of AI software, hardware, and services revenue, reaching $1.9 billion in 2016 and rising to $2.7 billion by the end of 2017, which is greater than any other industry segment. Although the entire market, including consumer AI, remains in its infancy, Tractica forecasts strong growth ahead, with the market for consumer AI hardware, software, and services increasing to $42.1 billion by 2025.