AI helps improve decision-making by identifying new business opportunities.
Hence, after identifying the importance of AI adoption, the global AI adoption rate in companies has increased by 4 points compared to 2021.
This is a massive step towards automation and increased efficiency in tasks. However, AI is predicted to eliminate 300 million jobs by the end of 2030.
Isn’t it shocking?
Let us explore the adoption of AI by companies, its importance, impact, and related concerns.
Number of Companies Using AI: Top Picks
- 35% of the companies worldwide use AI as of 2023.
- 42% of the companies globally are exploring AI and will soon implement it.
- 99% of the Fortune 500 companies use AI.
- 50% of the companies are using AI in at least one of their business function.
- The majority (56%) of companies use AI for customer service.
- Nearly 60% of the companies in India and China actively use AI in their workforce.
- 77% of companies fear humans may lose their jobs due to AI advancements.
- AI could replace 300 million full-time jobs by 2030.
- AI may automate 70% of business activities across most occupations.
What percent of companies use Artificial Intelligence?
- 35% of the companies reported using AI in their businesses.
An additional 42% of companies reported exploring AI and will soon implement it in their business.
The AI adoption rate has increased by 4% compared to 2021.
Larger companies are 100% more likely to have deployed AI usage compared with only 69% in 2021.
Besides, more than 50% are planning to incorporate AI technologies by the end of 2023.
Source: IMB global AI adoption report.
- 50% of the companies are using AI in atleast one business function as of 2023.
AI usage spiked between 2017 and 2019. Since then, the usage has remained stable and over 50%. However, these numbers are expected to increase rapidly from 2023.
The following table displays the percentage of companies that have adopted atleast one business function:
| Year | Percentage of companies that use AI in at least one business function |
|---|---|
| 2022 | 50% |
| 2021 | 56% |
| 2020 | 50% |
| 2019 | 58% |
| 2018 | 47% |
| 2017 | 20% |
Source: Exploding topics.
- 269 AI startups were launched in Q1 2023.
That’s a 69% decrease compared to the previous year. In Q1 2022, 688 new AI startups were launched.
Source: Sortlist.
- 66% of companies plan to use AI to address their sustainability goals.
One of the main goals that companies want to address with the help of AI is sustainability goals.
Other goals that companies wish to achieve with the implementation of AI are:
- Cost savings and efficiencies (54%)
- Improvements in IT or network performance (53%)
- Better experiences for customers (48%)
Source: IMB global AI adoption report.
AI Adoption and Growth in Business
- Over half of companies use AI to improve production processes, SEO optimization, and improving process automation.
AI is helping companies to become more productive, save time, and generate creative outputs.
According to Forbes surveys, most businesses and companies already use or plan to use AI in various business management processes and tasks.
The following table displays the percentage of businesses and companies that use AI in different Internal processes to improve the workflow.
| Internal process of businesses and companies | Percentage of businesses and companies that have implemented AI in these internal processes. |
|---|---|
| Improve production processes | 53% |
| Search Engine Optimization tasks | 52% |
| Process automation | 51% |
| Internal communications, plans, presentations, and reports | 46% |
| Aggregate business data | 40% |
| Idea generation | 38% |
| Minimize safety risks | 38% |
| Write code | 31% |
| Write website copy | 29% |
Source: Forbes.
- 30% of the global IT professionals said that AI had helped them save time.
AI is helping companies address the skill shortage by automating repetitive tasks.
Implementing AI-automated software and tools has helped increase employee engagement, eventually saving time.
Source: IMB global AI adoption report
- 56% of businesses use AI for customer services.
While 56% of business owners use AI for cybersecurity and fraud management.
Similarly, businesses are turning towards increased usage of AI in all fields to improve the quality of work.
Here are further details about the fields where businesses use AI.
- Customer Service (56%)
- Cybersecurity(51%)
- Digital personal assistants(47%)
- Customer relationship management(46%)
- Inventory management(40%)
- Content production(35%)
- Product recommendation(33%)
- Accounting(30%)
- Supply chain operations(30%)
- Recruiting and talent sourcing(26%)
- Audience segmentation(24%)
Source: Forbes.
- 61% of the employees currently use or plan to use generative AI.
The most common usage of generative AI is recorded in marketing and sales, products, services operations, and service development.
This is due to the huge availability of AI sales tools and software and AI marketing tools that automate repetitive tasks.
14% of companies use generative AI for marketing and sales, and 13% for product and service development.
Other commonly reported usages of generative AI are:
- Service operations (10%)
- Risk management(4%)
- Strategy and corporate finance (4%)
- HR(3%)
- Supply chain management(3%)
- Manufacturing(2%)
Source: Mckinsey, Salesforce.
- Over half of businesses and companies use AI and machine learning to enhance customer experience.
57% of the companies use machine learning to improve consumer experience.
AI plays a huge role in enhancing customer experience and eventually helping businesses retain their consumers and build a loyal customer base.
73% of businesses use AI-powered chatbots to address user queries instantly. At the same time, 61% of these companies and businesses use emails to communicate about their discounts, sales, new releases, etc.
Apart from that, the usage of AI in personalization has become a new trend. Hence, over 55% and 46% of businesses have deployed AI-powered personalization for providing personalized services and advertising.
The following table displays the percentage of businesses and companies that use AI in different fields to improve the consumer experience.
| Usage of AI in different fields | Percentage of businesses and companies that use AI in the given fields. |
|---|---|
| Chatbots | 73% |
| Emails | 61% |
| Personalized services | 55% |
| Text messages | 49% |
| Personalized advertising | 46% |
| Long-form written content | 42% |
| Phone calls | 36% |
Source: Forbes.
Fortune 500 companies using AI
- 99% of the Fortune 500 companies use AI.
Most Fortune 500 companies use AI in their recruitment processes and management processes.
This is because using AI in the recruitment process can reduce hiring costs by 30%.
Global Adoption of AI by Companies by Region
- Nearly 60% of the companies in China and India actively use AI.
Chinese and Indian companies are leading the way in AI adoption rates.
Italy, UAE, Germany, and France also have a considerable rate of AI adoption at their workplaces.
At the same time, a large number of companies in Canada, Australia, South Korea, and Spain are exploring AI as of 2023.
The following infographic displays the percentage of AI adoption rates recorded in different countries worldwide.
| Country | Percentage of companies that deployed AI | Percentage of companies exploring AI |
|---|---|---|
| Australia | 24% | 44% |
| Canada | 28% | 48% |
| China | 58% | 38% |
| France | 31% | 44% |
| Germany | 34% | 44% |
| India | 57% | 27% |
| Italy | 42% | 41% |
| Latin America | 29% | 43% |
| Singapore | 39% | 46% |
| South Korea | 22% | 46% |
| Spain | 31% | 45% |
| UAE | 38% | 40% |
| United Kingdom | 26% | 47% |
| United States | 25% | 43% |
| Global | 34% | 42% |
AI Market Growth Forecast
- The market size of the Artificial intelligence industry is projected to reach $241.8 billion as of 2023.
The market size is expected to grow with a CAGR of 17.30%, resulting in a market size of $738.8 billion by the end of 2030.
Narrowing down the research to the United States, the market size of the Artificial Intelligence industry is anticipated to reach $87.18 billion by the end of 2023.
The following table displays the market value of AI recorded over the years.
| Years | Market size of AI recorded over the years |
|---|---|
| 2030 | $738.80 billion |
| 2029 | $659.50 billion |
| 2023 | $241.80 billion |
| 2022 | $134.90 billion |
| 2021 | $227.70 billion |
| 2020 | $108.40 billion |
Source: Statista.
14.) The generative AI market is estimated to be valued at $44.89 billion as of 2023.
The market is expected to reach $207 billion by the end of 2030.
The Generative AI market was worth just $5.67 billion at the beginning of 2020. The market witnessed drastic growth over the last three years and is anticipated to grow at the same speed in the upcoming years.
The following table displays the market size of the Generative AI market recorded over the years.
| Years | Market size of the Generative AI market recorded over the years |
|---|---|
| 2030 | $207 billion |
| 2029 | $181.90 billion |
| 2023 | $44.89 billion |
| 2022 | $23.17 billion |
| 2021 | $11.25 billion |
| 2020 | $5.67 billion |
Source: Statista.
State of AI in Companies and Businesses
- AI adoption today has increased by 2.5 times compared to 2017.
In the 2017 McKinsey survey, only 20% of the respondents said that their company has adopted AI.
In 2022, 50% of the respondents cited that their companies have adopted the usage of AI in at least one field.
However, the adoption rate peaked in 2019, where 58% of the respondents said that their company had deployed the usage of AI.
The following table displays the rate of adoption of AI recorded over the past years.
| Year | Percentage of respondents whose companies have adopted the usage of AI |
|---|---|
| 2022 | 50% |
| 2021 | 56% |
| 2020 | 50% |
| 2019 | 58% |
| 2018 | 47% |
| 2017 | 20% |
Source: McKinsey.
- 94% of business leaders believe that AI is critical to success.
Business leaders believe AI will boost their company and business over the next five years.
Most businesses worldwide look forward to deploying AI in all fields to minimize efforts and gain high outcomes.
Source: Delloite.
- 52% of the companies have more than 5% of their digital budgets for AI.
The level of investment in AI has increased along with the increase in the rates of AI adoption.
Five years ago, in 2018, only 40% of the companies invested over 5% of their digital budgets in AI.
Whereas, in 2022, over half of the companies have allotted more than 5% of their digital budgets for AI adoption.
Further, 63% of the respondents say they expect their organization’s investments in AI to increase over the next three years.
Source: McKinsey.
Concerns of Business Owners about Implementing AI
- 1 in 4 business owners fear that artificial intelligence will affect their website’s traffic.
24% of businesses and companies worldwide are concerned that AI may affect the visibility of their business on search engines.
However, 64% of businesses and companies are not concerned about using artificial intelligence, while 12% are unsure.
According to the Forbes survey, these concerns are reasonable, as 65% of the consumers are looking forward to using ChatGPT for searches instead of search engines.
Source: Forbes.
- Over 43% of businesses are concerned that using AI will make them technology-dependent.
Additionally, 35% of the entrepreneurs are unsure if their technical skills are sufficient to use AI efficiently.
Further, one in three businesses are concerned about the spread of misinformation due to the usage of AI.
Adoption of AI indeed comes with some risks and disadvantages. Companies also need well-trained employees to adopt AI in their work systems.
Here are further concerns that company owners have regarding AI adoptions.
| Concern of the company owners | Percentage of Business owners and company owners |
|---|---|
| Technology dependence | 43% |
| Technical skills to use AI | 35% |
| Human workforce reduction | 33% |
| Privacy concerns | 31% |
| Provide my business or customers with misinformation | 30% |
| Bias errors | 28% |
| Negatively impact customer relationships | 24% |
Source: Forbes.
Impact of AI on Job and Employment
- 77% of employees fear humans may lose their jobs due to AI advancements.
33% of the survey participants in a Forbes survey anticipated that adopting AI companies may reduce the human workforce.
- 82% of the employees believe AI increases job satisfaction and enhances performance.
The majority of the workforce is optimistic about AI adoption. They expect that AI will enhance their performance and promote cross-organizational collaboration.
However, 47% of the people say that AI creates fear or concern among employees and companies.
Source: Deloitte.
- AI could replace 300 million full-time jobs by 2030.
AI could replace a quarter of work tasks, especially in the United States and Europe. However, it may also create new job opportunities and increase productivity.
Implementing AI will eventually increase the total annual value of goods and services by 7%.
Further researchers from the University of Pennsylvania and OpenAI found that some white-collar workers are most likely affected by workforce automation.
Another report from Forbes stated that AI will replace approximately two million manufacturing workers by 2025.
A study by the McKinsey Global Institute says at least 14% of employees globally will need to change their careers due to AI advancements by 2030.
Source: Nexford University.
Challenges in AI adoption by companies
- The major challenge hindering AI adoption and deployment is limited AI skills, expertise, and knowledge.
34% of the companies cited it as a major challenge in AI adoption.
Some companies cite that AI is very expensive(29%), while 25% said they lack the proper tools and platforms to develop models.
AI is complex to operate and deploy if the employees donot have the required knowledge. Similarly, it becomes difficult for companies to integrate and scale their projects with AI (24%), and the data complexity increases (24%).
Source: IBM, Statista.
- AI is not trustworthy and responsible and sometimes provides biased responses.
The majority of companies cannot address these issues, and hence, they end up generating losses or unexpected outputs with the use of AI.
Other issues that the companies must address are:
- Steps to reducing bias (74%)
- Tracking performance variations and model drift (68%)
- Making sure they can explain AI-powered decisions (61%)
Source: IBM.
Future of AI in the Business
- AI could automate up to 70 percent of business activities across most occupations.
According to McKinsey’s report, implementing automation will add $13 trillion to the global economy.
This will increase the global GDP by 1.2% annually. The major factors responsible for this increase would be automation and increased innovation in products and services.
Source: Mc Kinsey.
