The impact of AI technology is on par with monumental innovations such as the steam engine or the rise of the Internet. We are witnessing an era-defining shift that is set to profoundly alter global lifestyles and work practices. This shift is driven by multiple interrelated factors, each amplifying the others. adesso outlines the most significant drivers of this ongoing revolution:
- 1. Digitalisation and Dematerialisation: The transition from physical to digital is evident in many aspects of life—streaming services have replaced vinyl records, digital payments are taking over from cash, and AI assistants are supplanting human advisors. The proliferation of smartphone apps has rendered many physical products obsolete, illustrating the trend towards digital representation of objects. Moreover, these digital entities are increasingly interconnected through networks like the Internet of Things (IoT) and the Internet of Everything (IoE), generating vast amounts of high-quality data for AI advancements.
- 2. The Power of Big Data: Companies now generate enormous volumes of data through sensors, digital processes, and social media, often in real time. This vast, constantly updating reservoir of data (volume) is essential for AI. Big data is characterized not only by its sheer volume but also by the speed of data processing (velocity), the diversity of data sources (variety), the precision and dependability of the data (veracity), and its relevance to specific applications (value).
- 3. Moore’s Law and Exponential Growth: Moore’s Law, which reflects the exponential growth pattern similar to the legendary grain of rice on a chessboard, illustrates the rapid pace of IT development. By doubling at each stage, technology advances at an extraordinary rate, which in turn accelerates AI development. This exponential growth is the technical foundation for increasingly powerful IT architectures, enabling swift progress in artificial intelligence.
- 4. Investment Influx: AI development is attracting substantial financial investment, recognized as a primary driver of innovation. These investments are fostering new products and services that are poised to reshape market shares, power dynamics, and influence spheres. Bloomberg Intelligence forecasted that the generative AI market could reach approximately USD 1.3 trillion by 2032, with the software market alone contributing USD 280 billion. This surge in investment will have profound effects on the economy, labor markets, and global geopolitics, presenting challenges to businesses, societies, and governments alike.
- 5. The Hype Cycle of Technological Innovation: AI is following the well-known hype cycle model established by Gartner, a framework that outlines five stages of technological evolution. These stages begin with the initial spark of interest in a new technology, move through a phase of inflated expectations, enter a period of disillusionment, proceed to practical realization and implementation, and finally reach a stage of productive maturity. While not all technologies complete this cycle, AI appears set to reach the final stage of maturity without question.
