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July 22, 2024, 2:13 p.m.
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AI Market Competition: Trustworthy Solutions as Key Differentiator

Brief news summary

Global market players in the artificial intelligence (AI) space must offer differentiated business values, such as trustworthiness, to attract customers as spending on generative AI (Gen AI) is expected to increase. Research firm IDC forecasts that enterprise spending on Gen AI solutions will exceed $19.4 billion worldwide this year, reaching $151.1 billion in 2027. China currently leads in Gen AI adoption, but the US remains ahead in areas such as infrastructure and large language models. Companies must address privacy concerns and ensure responsible AI use to build trustworthiness and gain a competitive edge. Stricter AI regulations and tech protectionism are driving segregated global tech markets seeking digital sovereignty. The adoption of Gen AI could boost the global economy by $2.6 trillion to $4.4 trillion annually. However, limitations placed on China's access to AI chips and technology could slow AI innovation in the country.

Market players competing in the artificial intelligence (AI) space will need to differentiate themselves by offering trustworthy solutions. Spending on generative AI (Gen AI) is projected to double this year and reach $151. 1 billion in 2027. China currently leads in Gen AI adoption but the US has more organizations with fully implemented Gen AI tools. Despite the US leading in AI infrastructure and foundation research, China is catching up in the development of foundation models.

Europe leads in AI regulations with the recently passed AI Act. To gain a competitive edge, market players should prioritize AI applications for each industry, address privacy concerns, and focus on AI governance. Adoption of AI can potentially add trillions to the global economy. However, restrictions on China's access to AI chips and technology may slow down AI innovation in the country but also strengthen China's resolve to accelerate local R&D.


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