Mounting competition in AI space
Earlier in the series, we learned that Salesforce (CRM) is increasingly interested in the AI (artificial intelligence) space. Recently, deep learning, machine learning, and AI have all taken the world by storm. AI is an umbrella term that encompasses natural language processing, machine learning, and robotics.
Apart from Salesforce and IBM (IBM), Microsoft (MSFT) is also trying to capture AI market share with its recent acquisition of Genee. Plus, Amazon (AMZN) used its Alexa Fund to host a voice technology summit in late August to make a move toward developing its own virtual assistant offerings.
If we look at how the SMAC (social, mobile, analytics, and cloud) revolution is moving today’s IT (information technology) scenario toward the digital and cloud space, the M&A (mergers and acquisitions) fever that has gripped the software space should come as no surprise. Read Market Realist’s M&A Trend Likely to Continue for Microsoft and the Tech Space to learn more.
AI is expected to be an innovation accelerator in the tech space
Lynne Parker, director of the division of information and intelligent systems for the National Science Foundation, stated that cognitive computing “is often a complete architecture of multiple AI subsystems that work together.”
According to the IDC (International Data Corporation), cognitive computing is “one of six Innovation Accelerators that will drive digital transformation by opening new revenue streams, creating information-based organizations, and changing the way work is performed.” Notably, the Wall Street Journal has reported that the global market for this space is expected to grow at a CAGR (compounded annual growth rate) of 65% to $16.5 billion in 2019, up from $1.6 billion in 2015.
Given the growth and revolutionary status that AI is expected to bring to the tech space, Salesforce’s and other major tech players’ interests in this space are not surprising.