Artificial Intelligence is a branch of science focused on equipping machines (Hardware & Software) with human like cognitive abilities. At a high level, it is simply any computational technology or product that attempts to replicate human reasoning and learning processes for making optimal decisions based on environmental inputs.

In order for AI technology to replicate human cognitive abilities, it first needs the capacity to “sense” its surroundings. Humans utilize various senses such as sight, hearing, and touch in order to both perceive and learn from the environment. AI is currently not at the level to effectively integrate all human senses to replicate human brain processing in one single product. Instead, products are currently specialized for specific and limited tasks such as AlphaGo, which was created specifically to play the board game Go. AI technology that is only able to perform a specific task such as play a game or drive a car is considered Narrow AI. In contrast, AI that can perform any task at a human cognitive level is called Strong or General Intelligence AI.

Narrow AI is what is currently technologically feasible. Products might specialize in 1 or 2 of the “senses” for a specific/narrow goal. For example, self-driving cars, which are still in the development phase, use cameras, satellites, radars, and lasers to provide “sight” and auditory sensors to provide “hearing”. 

From a business perspective, the Artificial Intelligence industry has strong potential for growth. Revenue is forecasted to grow from a current $600+ million to over $35 Billion by the year 2025. We are starting to see the Rise of the Machines, in which AI technology will become ubiquitously integrated into almost every product in the future and become a level of service that customers will eventually expect. However, as we are in the early industry lifecycle of consumer acceptance of this disruptive AI technology, current profitability will be low and possibly non-existent. Large companies with deep pockets will be able to fund their own research, but smaller companies with innovative ideas will need the help of Venture Capitalists in order to survive the early stages.

 

The Philosyfi Strategy Group is able to work with companies to navigate through this industry and determine how to best meet customers’ needs