Forrester: Artificial Intelligence Software Growth Will Fall Below Current Investor Projections
- Post-2023, AI software revenues will be less than 3% of the overall application market. AI in business apps will be the norm, prompting AI-centric and AI-infused applications to dip further within the overall application market.
- Sixty percent of software buyers will expect AI functionality from existing vendors. Sixty percent of software buyers, and likely more over time, expect to receive AI functionality from existing vendors, rather than custom-creating their own applications.
- AI-infused applications will be unable to sustain premium-product status. Currently, 10% of vendors are offering AI-infused apps at differentiated prices. As vendors add more AI functions, the ability to charge a premium for AI will be lost in competition.
The report further states that AI maker platforms used for creating highly customized solutions and AI facilitator platforms used for applications including computer vision and natural language virtual assistants have the strongest growth potential. Other AI market segments likely to grow include AI-centric applications for specialized medical tasks and AI-infused applications that create differentiated products through added AI functionality.
"While we're seeing high demand for AI technology, platforms, and applications, AI's ubiquity will ultimately make the technology commonplace in software development," said
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