Although there will be more intense competition among companies in terms of application of AI, market analysts say potential benefits far outweigh the threats
Market research analysts have predicted that companies in the automotive, aerospace and defense, and retail sectors will be most impacted by artificial intelligence (AI) in the coming years.
Banking, media, support services, technology, telecoms and transportation are other sectors that will see greater impact from the application of AI, according to a market analysis report by Swiss banking giant UBS Group AG.
The analysts are expecting that these and many other sectors will see cost reductions and improved efficiency from using AI and AI-enabled tools.
While use of AI-enabled robots in warehouses is helping transportation companies to cut staffing costs, AI tools have enabled telecom networks to better predict usage patterns and eliminate waste through improved routing, the analysts said.
Potential benefits of AI far outweigh the threats
Although there will be more intense competition among companies in terms of application of AI, the analysts said, they expect more potential benefits than threats from AI.
The analysts made the report after assessing the revenue, cost savings and competitive risk associated with AI across major business sectors.
They also found that health care, software, media and finance are sectors where the most AI investments are currently being made.
The UBS report cited that rapid growth in computational power and the availability and accessibility of large amounts of data in recent years have largely enabled the use of AI in the business world.