Investments in AI Are Expected To Soar In Asian Markets

There has been a huge surge in the demand of AI-powered products across many Asian economies. With that said, China has been far ahead of most other economies in the Asian region when it comes to investment in futuristic technologies such as AI. Almost 70% of the Asian AI market seems to be in the grip of China.

Since many Asian economies are going through phases of development including industrialization and rapid urbanization, there is a great demand for AI solutions to solve the problems faced by the Asian economies. The intense traffic situation in most metropolitan cities across Asia, for instance, can be efficiently and effectively solved by automating transportation or introducing AI powered fleet wide traffic control.

Industrial applications of AI solutions will also help them make their operations more efficient and boost levels of productivity. Automated supply chains, for example, will lead to rapid operations, cost savings, and economic gains. For all its potentials benefits, investments in AI have soared in the Asian region. This year’s investments are expected to cross $5.5 billion which will be an 80% increase from the figures of 2018. A report by a research firm estimates that total investments in AI will reach 15.06 billion by the end of 2022 at a 50% compound annual growth rate.

While the global spending on AI systems is slated to grow at a compound rate of 38%, the Asian market will surpass the rest of the world with its higher growth rates in AI investments.

The sectors that will most heavily be investing in AI systems are government industries, retail sector, and professional services.

The retail industry is also expected to rely heavily on the use of AI systems. Supply chains and logistics, customers’ service, merchandising, and even product recommendations can be automated using AI-based systems.

The banking industry is not far behind. Artificial intelligence can be introduced in order to help out with fraud analysis, customer service, and program advisory in the banking sector. Another service sector that will be investing heavily in AI–based solutions is healthcare. In the healthcare industry, AI can not only be used for enhanced infrastructure but also to make provision to patients more efficient.