There is considerable hype surrounding the rapid growth of AI adoption, but is it growing as fast as the media portrays?
Why it matters: A recent McKinsey report indicates that by 2030, 30% of hours worked in the U.S. could be automated.
- Additionally, a report from the National University estimates that AI could lead to the loss of 300 million jobs globally.
By the numbers: Statista projects that the AI market will grow at a compound annual growth rate (CAGR) of 26.6% over the next five years.
- To put that into perspective, the internet grew by over 1000% during the early 1990s.
- Likewise, mobile phone usage increased by 16% in 2007.
Context: AI is growing at a slower pace than the internet did during its early days and much faster than mobile phone use at the time of the iPhone introduction.
- This growth is not just limited to the U.S.; it is happening globally.
Zoom in: There are significant obstacles to the rapid adoption of AI.
- While most organizations face challenges related to their workforce, major tech companies have struggled to overcome issues related to electricity and data center space.
- The rapid growth of the internet can largely be attributed to the availability of low-cost, open-source servers and freely available browsers.
- In contrast, there are currently no affordable options for hosting AI services.
Between the lines: Tech companies, in collaboration with governments, are rapidly constructing new data centers to fuel the AI revolution.
- These data centers demand large amounts of energy, most of which is expected to be generated initially by burning fossil fuels.
- The United Nations (UN) has already warned that it may impose sanctions on countries that produce excessive pollution.
- However, concerns about climate change have been overshadowed by the focus on AI.
What's next: The ongoing AI arms race is set to define economic and military dominance in the next decade.
- As challenges related to data center space and electricity production are addressed with improved availability, the growth of AI is expected to accelerate even further.
- For companies and governments seeking to remain competitive, it is essential to adopt AI, regardless of the associated costs.
Go deeper: Want to learn more about AI adoption for your company? Contact Todd Moses & Co.
