This Technology Watch report has a focus on Artificial Intelligence (AI) as one the most significant technologies that are currently shaping the whole process of digital transformation and industrial modernisation in Europe and Worldwide.
After an early stage dominated by innovative players and exploratory applications in specific business and societal scenarios, Artificial Intelligence has rapidly gained in importance and diffusion and is now beyond the nascent phase. The potential for future growth and economic impacts is still impressive, because AI is a general-purpose technology expected to be adopted in different ways by all industries and all social actors. Even if these estimates need to be revised because of the disruption caused by the COVID-19 pandemic, there is still no doubt about the relevance of the potential impacts of AI-driven innovation. Artificial Intelligence is poised to span every aspect of our daily lives.
The speed of evolution of the market is impressive. At worldwide level, the total spending on AI to grow at a 5-years Compound Annual Growth Rate of 26.5% for the period 2018–2023, up to €96 bn at the end of that period. The European Union market is expected to grow faster than the global market, representing a share of 23% of total by 2023.