How big is the market for artificial intelligence software? In our new report, "The AI Software Market Will Grow To $37 Billion Globally By 2025," Forrester forecasts that the size of the AI software market will approach $37 billion by 2025. That's a large number but still smaller than many investors and other analysts have projected. We believe our projection is more realistic, however, for two reasons. First, most business applications are adding AI functions without monetizing them.

Alan Kay, Cathie Norris, Elliot Soloway, and I had an article in the September 2019 issue of Communications called "Computational Thinking Should Just Be Good Thinking" (access the article at http://bit.ly/2P7RYEV). Our argument is that "computational thinking" is already here--students use computing every day, and that computing is undoubtedly influencing their thinking. What we really care about is effective, critical, "expanded" thinking, where computing helps us think. To do that, we need better computing. Ken Kahn engaged with our article in the comments section (thank you, Ken!), and he made a provocative comment: There are have been many successful attempts to add programming to games: Rocky's Boots (1982), Robot Odyssey (1984), RoboSport (1991), Minecraft (multiple extensions), and probably many more.

Yet the healthcare industry has been slow to commit to its potential. As recently as 2016, a Forrester Consulting survey found that just 34% of healthcare organizations had adopted predictive analytics, compared with 51% in all other industries. Healthcare was similarly behind in cognitive computing, at 23% versus 40% elsewhere. Among the pioneers, some organizations are already using AI to reduce physical trips to the doctor's office, improve patient care and rethink care delivery models that date to the 19th century. "I believe we can get to a world where we aren't just identifying your likelihood of utilizing the emergency room or being hospitalized, but getting in front of those situations and delivering proactive care," says Dr. Arta Bakshandeh, senior medical officer at Alignment Healthcare.

These and many other fascinating findings and insights are from a recent McKinsey Global Institute (MGI) Discussion Paper, Notes from the AI frontier: Applications and value of deep learning. Titled Notes from the AI Frontier: Insights From Hundreds Of Use Cases (36 pp., PDF, no opt-in) the discussion paper draws on MGI research and the firm's applied experience with artificial intelligence (AI) of McKinsey Analytics, assessing the practical applications and the economic potential of advanced AI techniques. The discussion paper's findings are based on intensive MGI analytics collated and integrated with more than 400 use cases across 19 industries and nine business functions.

These and many other fascinating findings and insights are from a recent McKinsey Global Institute (MGI) Discussion Paper, Notes from the AI frontier: Applications and value of deep learning. Titled Notes from the AI Frontier: Insights From Hundreds Of Use Cases (36 pp., PDF, no opt-in) the discussion paper draws on MGI research and the firm's applied experience with artificial intelligence (AI) of McKinsey Analytics, assessing the practical applications and the economic potential of advanced AI techniques. The discussion paper's findings are based on intensive MGI analytics collated and integrated with more than 400 use cases across 19 industries and nine business functions.

What comes through strongly from all the analysis we've carried out for this report is just how big a game changer AI is likely to be, and how much value potential is up for grabs. AI could contribute up to $15.7 trillion1 to the global economy in 2030, more than the current output of China and India combined. Of this, $6.6 trillion is likely to come from increased productivity and $9.1 trillion is likely to come from consumption-side effects. While some markets, sectors and individual businesses are more advanced than others, AI is still at a very early stage of development overall. From a macroeconomic point of view, there are therefore opportunities for emerging markets to leapfrog more developed counterparts.

According to a new report by PwC, Artificial Intelligence (AI) could contribute up to $15.7 trillion to the global economy in 2030, more than the current output of China and India combined. The greatest gains from AI are likely to be in China (boost of up to 26% GDP in 2030) and North America (potential 14% boost). The biggest sector gains will be in retail, financial services and healthcare as AI increases productivity, product quality and consumption. Increased productivity and consumer demand In the near-term, economic uplift from AI is likely to come from improved productivity. This includes automation of routine tasks, augmenting employees' capabilities and freeing them up to focus on higher value-adding work.

It's widely accepted that artificial intelligence (AI) will have a huge impact on our lives in the coming decades -- but what's its value to the global economy? According to a new report, global GDP will be 14% higher in 2030 as a result of AI -- the equivalent of $15.7 trillion, more than the current output of China and India combined. The report, Sizing the Prize, was launched by PwC in a session at the World Economic Forum's Annual Meeting of the New Champions 2017 in Dalian, China. Improvements to labour productivity will account for over half of all economic gains from AI between now and 2030, while increased consumer demand resulting from product enhancements will account for the rest. Regional gains will be most strongly felt in China, which will receive a 26% boost to GDP in 2030, followed by North America (14.5%).

Business leaders are asking: What impact will AI have on my organisation, and is our business model threatened by AI disruption? And as these leaders look to capitalise on AI opportunities, they're asking: Where should we target investment, and what kind of capabilities would enable us to perform better? Cutting across all these considerations is how to build AI in the responsible and transparent way needed to maintain the confidence of customers and wider stakeholders. These are the strategic questions we'll be addressing in a series of reports designed to help enterprises create a clear and compelling business case for AI investment and development. While there's been a lot of research on the impact of automation, it's only part of the story.

Improving artificial intelligence (AI) technology and the proliferation of messaging apps -- which enable users and businesses to interact through a variety of mediums, including text, voice, image, video, and file sharing -- are fueling the popularity of chatbots. These software programs use messaging as an interface through which to carry out various tasks, like checking the weather or scheduling a meeting. Bots are still nascent and monetization models have yet to be established for the tech, but there are a number of existing strategies -- like "as-a-service" or affiliate marketing -- that will likely prove successful for bots used as a tool within messaging apps. Chatbots can also provide brands with value adds -- services that don't directly generate revenue, but help increase the ability of brands and businesses to better target and serve customers, and increase productivity. These include bots used for research, lead generation, and customer service.