BYLINE: May 23, 2018 12:04:00The future technology industry is booming, with the technology industry as a whole forecast to generate $US1.5 trillion ($1.8 trillion) by 2025.
The industry is also seeing exponential growth in the size of its research and development budget, and as the number of companies and research institutions in the field increases, so too does the growth in its investment portfolio.
The Australian and New Zealand government is backing the growth of AI research, saying its an “urgent need”.
The Australian Government, which has a $US50 billion research budget, is investing $US100 million ($120 million) a year into research and innovation to support the AI boom.
The government has pledged $US10 billion over the next five years towards the growth and advancement of AI, which is the most advanced technology on the planet.
But the real success story may lie in the global arena, where the AI sector is expected to reach $US5 trillion in annual sales by 2025, up from $US2 trillion in 2020.
Australia is a leading exporter of artificial intelligence (AI) and is also a major investor in AI research and training, according to the Australian Industry Group (AIG).
The sector is also poised to be the biggest player in the US market, where it is expected by 2021 to grow by more than 10% per year to more than $US4 trillion.
While the global industry is not expected to grow at the same pace, it is also expected to become one of the world’s top five biggest players in the sector by 2025 according to a recent report from the McKinsey Global Institute.
While there is no set number of researchers or companies in Australia, it could be up to 30.
In the US, AI research is expected as the fastest growing industry by 2021, with an investment of $US250 million a year.
It is estimated that by 2025 there will be $US200 billion of AI spending, which will grow to $US300 billion by 2025 and $US400 billion by 2040, according the McKinley report.
The global AI boom will be driven by a combination of the growth potential of AI and the ability of technology companies to deliver new services and products faster than traditional companies.
The growth of the AI industry is expected partly by the rising cost of developing and testing AI technology, which means more money will be needed to get a product out the door, McKinsey says.
“Achieving scale and speed of production, for instance, is critical to maximising the value of AI,” the report says.
The report also cites a shift in priorities for the AI market, with AI companies now focusing more on software and services.
The AI boom is predicted to help the global economy, with Australia being the fastest-growing major economy by 2025 thanks to the global growth in AI and a growing reliance on AI-based services, according McKinsey.
Australia will be a major beneficiary of the global AI growth.
The Australian dollar has risen over the past year as a consequence of increased demand for Australian goods and services from AI and robotics firms.
However, there are concerns the growth will also have an impact on the Australian economy, as it is a relatively high-cost country to develop and test new AI technology.
According to the World Economic Forum, Australia’s export-driven growth will fall short of its potential, which would see it overtake China as the world leader in AI in 2021.
The WFE expects the AI revolution to boost Australia’s economy by $US15 billion by 2021.
“The global growth of artificial intelligent systems and related technology is likely to drive the Australian and Australian-focused AI industry, and it is likely the impact on Australia’s exports and services economy will be substantial,” the WFE said.
The AIG said Australia is in the midst of a technological revolution and its AI and related services industries will continue to play a key role in Australia’s future.
“Our research and the development of new AI-enabled products, services and applications is crucial to the development and continued growth of Australia’s global technology industry,” it said.
“Australia’s AI research efforts are helping drive a rapid shift in Australian business activity away from reliance on legacy, infrastructural technology to digital technologies, such as artificial intelligence.”