- AI boom is driven by several key factors, like scientific and technological progress, big data and computing power, etc..
- AI boom is also caused by investment and funding, policy and government support, cultural and technological shifts, industry demand and application.
AI boom, characterised by a rapid surge in the development, investment, and adoption of AI technologies across industries, is driven by several key factors. These factors have created fertile ground for the rapid growth and widespread adoption of AI, profoundly changing every aspect of social life.
1. Scientific and technological progress
AI boom has been driven in large part by significant advances in AI technology itself. Breakthroughs in machine learning, particularly deep learning techniques, have revolutionised the field. Algorithms that can learn from large data sets and make predictions based on those data sets have become more complex and efficient. This advance enables AI systems to perform tasks that were previously considered highly complex or even impossible for machines, such as natural language processing, image recognition, and autonomous decision-making.
Also read: Is AI boom over? There may be ‘boom-bust-boom’ curve
2. Big data and computing power
The availability of large amounts of data, coupled with an increasingly powerful computing infrastructure, has played a major role in driving the AI boom. AI systems rely on data to train their algorithms and improve their accuracy and capabilities. The rise of cloud computing and the development of dedicated hardware such as GPUs have greatly accelerated the processing speed and scalability of AI applications.
Also read: Super Micro Computer rides AI server boom to join S&P 500
3. Industry demand and application
Industries across the board are recognising the transformative potential of AI to increase efficiency, drive innovation, and enhance competitiveness. From healthcare to finance, retail to manufacturing, organisations are deploying AI to streamline operations, optimise supply chains, personalise customer experiences, and develop new products and services. This demand from enterprises seeking to leverage AI for strategic advantage has contributed to the rapid growth of the AI market.
4. Investment and funding
Private and public sector investment in AI research, development and start-ups has surged. Venture capital firms, tech giants, and governments around the world have allocated significant resources to AI initiatives. This influx of funds not only supports the advancement of AI technology, but also encourages entrepreneurial activity and innovation in the AI ecosystem.
5. Policy and government support
Governments in AI leaders such as the United States, China, and Europe have recognised the strategic importance and potential economic impact of AI. They have introduced policies and initiatives to promote AI research, development and adoption. These policies include funding for AI research institutes, incentives for AI startups, and an ethical framework for AI deployment. Government support has played a crucial role in creating an enabling environment for AI innovation and deployment.
6. Cultural and technological shifts
AI technology is gaining wider cultural acceptance and being integrated into everyday life. Consumers are already accustomed to AI-driven apps and services, from virtual assistants like Siri and Alexa to recommendation algorithms for streaming platforms and e-commerce sites. As businesses and consumers increasingly rely on AI-powered solutions, this acceptance encourages further investment and development in AI.
