AI Adoption Generates New Business Models and Strengthens Customer Value

• The adoption of AI technologies across industries unleashes innovative business models, drives operational efficiencies, and creates strategic differentiation, says Frost & Sullivan

• As the Mega Trends shape the AI landscape, it will have a ripple effect on new revenue and growth opportunities for start-ups and global information and communication technology (ICT) companies.

• This research service identifies growth opportunities related to providing integration services to build customized solutions for AI, edge data centers, and offering industry vertical/function-specific applications and others.

Artificial intelligence (AI) leverages algorithms and large data sets to find underlying relationships and drive new or better business outcomes. While still nascent, AI technologies are being adopted across industries globally to innovate business models, drive operational efficiencies, and create strategic differentiation. The COVID-19 pandemic further accelerated the pace of digital transformation and AI adoption as organizations seek to explore new means of creating sustainable business models and driving customer value. In addition, the AI ecosystem is evolving rapidly, making it essential to understand the overarching trends affecting AI and its adoption.

Artificial intelligence (AI) will create new revenue and growth opportunities for start-ups and global information and communication technology (ICT) companies, finds Frost & Sullivan's recent analysis, Global Artificial Intelligence (AI) Market. The adoption of AI technologies across industries unleashes innovative business models, drives operational efficiencies, and creates strategic differentiation. Additionally, the pace of digital transformation and AI adoption has accelerated as organizations explore new means of creating sustainable business models and driving customer value.

"The move to large-scale AI adoption requires a holistic AI strategy coupled with an ethical and responsible framework to ensure sustainable and long-term adoption," said, ICT Industry Analyst at Frost & Sullivan. "Going forward, deploying AI technologies and operationalizing an ethical AI framework within an organization and throughout the AI development and management life cycle will require a well-defined approach and business as well as the alignment of all technology stakeholders."

Patel added: "Data-driven business models and the digitization of functional applications created large volumes of data that need to be analyzed effectively to unlock their true potential. Due to this, over the next three years, organizations are expected to create data readiness for AI deployments and leverage disruptive AI technologies to strengthen competitiveness and build sustainable business models."

Market participants seeking to take advantage of the expanding AI market and its growth opportunities should:

• Partner with consulting services companies to provide advisory capabilities to clients.

• Integrate AI capabilities into vertical/horizontal enterprise solutions or create industry-specific solutions.

• Develop infrastructure management platforms and tools to effectively deploy AI technologies and provide customers with easier management of edge data center facilities, networks, and security.

• Build domain capabilities around use cases or establish strategic partnerships with advisory service providers and industry participants that possess the necessary functional abilities.