Artificial intelligence firms’ revenue to hit $3bn by 2024: Report

Artificial intelligence (AI) companies' revenue projections are increasing at a fast pace and are expected to touch around USD 3.06 billion by 2024, according to a report. ‘Deep learning’ is expected to have the fastest growth within the artificial intelligence space and will become the largest portion of the total revenue of an AI company, according to an Avendus Capital report. "Artificial intelligence revenue projections are on a fast growth axis, as they are increasing at a CAGR of 40 per cent and are expected to be at a value of USD 3,061 million in 2024," the report said. Furthermore, the increased demand for robots has led to a rise in investment and M&A in the AI space, the reported noted. The AI industry has received more than USD 11.5 billion of investments in the last three years and the industry is expected to attract venture capital (VC) led investments of over USD 6 billion in 2017, reports the PTI. "The necessity of automating processes and the need for AI are reasons for the exponential growth in investments, attracted by the space, in the past few years," said Puneet Shivam, Head – US, Co-head Services Vertical, at Avendus Capital. He added that "today companies are allocating larger budgets to AI for making it an intangible asset to increase customer footprints and market share in India. And this will continue in the future as newer and evolved versions of AI are introduced, shaping the dynamics of technology". Some of the most active VC funds in this space at present are -- Data Collective, Khosla Ventures, Intel Capital, New Enterprise Associate, Google Ventures and Bloomberg Beta.