Artificial intelligence is witnessing an unprecedented revolution. It’s being deployed by more and more businesses in almost every industry, and that has also accelerated the pace of its development. Due to all these changes, a number of new AI trends keep emerging every year. This year was no different, and next year will also be no different. Therefore, at the end of the year, it makes sense to take a look at some of the trends that may define 2023 of artificial intelligence. Let’s get started!
Best AI Trends: In A Nutshell
|Sr. No.||Trend||Key Changes|
|1.||Rise of Ethical AI||More regulation of AI|
|2.||Standardization of ML processes||More streamlined and standardized ML processes in organizations|
|3.||Generative AI in Marketing and Media||AI creates content for the marketing needs of businesses|
|4.||Increasing Importance of Model Management Platforms||Popularization of model management platforms among organizations|
|5.||Greater Penetration of Adaptive AI||More personalized store experiences|
|6.||Increasing Role of Edge AI||Smarter manufacturing units, retail stores, and supply chains|
|7.||More Accurate Health Diagnostics||Better and more automated telemedicine experiences|
|8.||Better Demand Forecasting and Workflow Automation in Retail||Fewer stock shortages, improved service quality, reduced costs|
|9.||Improved Fraud Detection and Personalization in Fintech||Improved customer identification and risk management, automated and swift fraud detection|
|10.||Creative AI In The World Of Art||Changing the ways of creating art and illustrations|
#1. The Rise Of Ethical AI
Let’s accept that — AI and the companies that make AI-based tools to perform various tasks have had sort of a free run until now. Unlike other industries that are regulated by various laws and regulations, AI has for the most part of its existence been subject to self-regulation of companies that work on it.
But those glorious days seem to end now. The number of artificial intelligence-related rules and policies is fast increasing with acts like the European Union AI Act, the American Data Privacy and Protection Act of the US, and Securing Open Source Software Act (again, in the US). A report recently published by Gartner suggests that legislation and regulation will push businesses to concentrate a lot more on AI ethics, transparency, and privacy by 2025, which means this is going to be a major trend in 2023 too.
Due to these reasons, it is crucial to create AI models that are both moral as well as useful. The most important factor here is trust. AI needs data to educate and train the models that perform any action, and this data frequently consists of highly sensitive personal data as well (i.e. health-related or financial data). The entire system would collapse if the end-user of an AI product doesn’t feel comfortable sharing their personal information. Since this is a challenge for AI, attempts will be made to fix it in 2023. Those in charge of implementing AI systems will be required to ensure that they can explain the decision-making processes and the data utilized by their AI models. To remove prejudice and injustice from automated decision-making systems, the role of AI ethics will become more important than ever. (“The 5 Biggest Artificial Intelligence (AI) Trends in 2023”)
#2. Standardization Of ML Processes
Artificial intelligence and machine learning are not implemented easily in any large organization, largely due to their disruptive nature that can affect various business processes. Wherever AI or ML have taken root in large businesses, it’s easy to find siloed data science groups across different departments, each with its own set of tools and procedures. And actually, that works fine for small projects or tasks within projects. However, governance is necessary when deploying ML in customer-facing apps at an industrial scale. Now, governance makes it essential to have well-defined processes with checks and balances in place to promote efficiency while minimizing risks.
Businesses have also realized this requirement, which is why standardization of ML models and processes remained a major theme in 2022. It’s likely to remain a dominating trend in 2023 too as more and more business owners try to implement company-wide ML standards.
#3. Generative AI In Marketing And Media
Most businesses struggle relentlessly to win their customers’ hearts and minds. Consistently producing high-quality content that is acceptable for distribution across a range of marketing platforms is essential if you want to raise brand awareness and loyalty.
So far, this job of content creation has been mostly a human-specific domain. But as AI becomes smarter with each passing day, that’s changing. Today we have a new type of AI, called Generative AI, that’s allowing brands to enhance the creative process of their organization. It allows businesses to quickly and easily produce any type of content using transfer-style learning or general adversarial networks in generative AI networks. In 2023, its prominence in the field of content marketing is only going to increase.
But marketing is not the only domain that’s going to be affected by the potential of Generative AI. It also has the ability to transform the media landscape completely. The use cases here are potentially infinite, and some of them include:
- Creation of new films and the restoration of older films in high definition;
- Enhancement of special effects and VFX;
- Creation of avatars for use in the metaverse.
It will be interesting to see how these use cases are affected by Generative AI in 2023 and which other use cases emerge.
Bonus: Check out our extensive research on Generative AI Market Size.
#4. Increasing Importance Of Model Management Platforms
Machine learning tools and models are quite diverse in nature. Some are quite simple, others quite sophisticated. This creates a dilemma for various stakeholders within any corporation: how to arrive at a consensus on what’s the end-to-end life cycle of any ML tool/model? What management thinks is the life cycle of a model may not be the life cycle according to the IT team, and what the IT team thinks is the life cycle may not be acceptable to the risk management team, and so on.
But now that seems to be changing. In 2022 model management platforms provided a method to integrate the different functions of a model being utilized by the various departments within an organization. This creates a central space from where companies can manage their ML models and easily determine their end-to-end life cycle without having to ask the heads of individual departments. This trend will continue in 2023 as well. (Vartak)
#5. Greater Penetration Of Adaptive AI
Adaptive AI will be the driving force behind the transformation of retail stores from simple transaction centers into the focal point for improving brand awareness and customer experience. Leading retailers are making significant investments in AI to enhance operational effectiveness and customer experiences, and this trend will continue in 2023.
One significant effect of this trend will be the seamless shopping experiences powered by computer vision and edge-based AI systems with shorter wait times. Similar to online shopping sites, future retail outlets will be able to provide personalized recommendations and smooth customer journeys based on real-time analytics and data.
#6. Increasing Role Of Edge AI
Edge AI refers to AI that operates locally instead of in the cloud. The purpose of storing AI algorithms and data on devices is to boost the performance of AI-based systems and enable customized real-time experiences. Therefore, Edge AI has the potential to significantly improve our daily lives by enabling context awareness in widely used consumer electronics through robust deep learning.
Its implementation will become more accessible and less expensive in 2023, thanks to lightweight models and cheaper high-performance GPUs. Retail, manufacturing, and energy utilities are just a few of the industries that these reasonably priced and intelligent devices will transform. Their use cases will include anything from health and safety to maintenance and quality inspection. Its application will lead to smarter production facilities, retail stores, and warehouses that can make key decisions automatically for optimal productivity and efficiency.
#7. More Accurate Health Diagnostics
Healthcare is being revolutionized by AI. According to reports, the amount of healthcare data would grow by 36% yearly in 2023. Thanks to AI, processing and studying these enormous volumes of medical data collected from various sources is now possible. Insights gathered from this data can then be used for the creation of high-quality data sets that can train and enhance the performance of AI models. Once the models are trained, they can use neural networks, machine learning, and natural language processing to dramatically improve diagnosis accuracy and assist in tracking illness development.
One area where a visible change can be seen because of this trend is telemedicine. People with mental health issues prefer this treatment method as it allows them to receive treatment from the comfort of their homes. Early detection of such health issues is crucial to ensure a successful diagnosis and treatment. AI-trained models can help with that by conducting neuropsychological tests on recorded conversations of patients with health practitioners. After detection, AI-powered classification models can also aid in the treatment and monitoring of changes in a patient’s condition.
#8. Better Demand Forecasting And Workflow Automation In Retail
AI is empowering the retail industry by providing better demand forecasts and trend predictions than ever. This helps businesses with better inventory planning, thus maximizing their revenue generation possibilities. According to McKinsey, retail businesses that use AI-based workflow automation and demand forecasting tools observed the following improvements on average:
- 15% reduction in logistical costs
- 25-40% reduction in administrative costs
- 65% fewer stock shortages
- 65% improvement in service quality.
Due to these reasons, in 2023 AI will continue to play a greater role in the retail industry. We may see its use cases expanding from inventory, supply chain, and logistics management to cash register automation, store experience personalization, and much more.
#9. Improved Fraud Detection And Personalization In Fintech
When it comes to financial businesses, security and trust among customers are the most important. Timely detection and blocking of fraudulent or unauthorized transactions saves money, improves security, and strengthens the relationship between the business and the customer.
And it turns out that AI is helping with this too. AI-based identification processes helped financial firms collect more detailed information about the identity, suitability, and risks associated with customers right at the time of onboarding them. And that’s not all — machine learning models can swiftly spot fraudulent transactions and then execute the necessary next steps on their own to minimize the loss of customers.
AI can also identify clients using biometric data, speech recognition, or facial recognition, thus making more customized experiences possible for them. These use cases of AI in the fintech space will continue in 2023 too.
#10. Creative AI In The World Of Art
DALL-E and Midjourney AI have taken over the world of Art by storm with their machine-learning algorithms that create unique images from the text prompts provided by the user. The algorithm combines the preloaded data based on the text prompt and gives a result. They also create different versions of that image so you can choose the best one. These software are known as AI image generators, and now there are many of them.
Using these software programs, you can also enhance an existing image and turn it into different styles such as cartoons, anime, ultrarealistic, and so on. There are two ways to use them; you can either provide a text prompt to create an image from scratch or provide an image and create different variations of it.
Conclusion: Best AI Trends For (2023)
Trends define how any particular industry or niche is going to evolve, so these AI trends predict how the AI ecosystem will take shape in 2023. No matter which industry you belong to, you won’t be unaffected by these changes as more and more businesses start using AI-based tools to streamline their operations.
Do you know of any other AI trends that will reign throughout the next year? If yes, please share them in the comments. Also, share this article on your social media so others can also learn about and prepare for these AI trends.