Artificial intelligence cos' revenue to hit $3 billion by 2024

Artificial intelligence (AI) companies' revenue projections are increasing at a fast pace and expected to touch around $3.06 billion by 2024, says an Avendus Capital report.

According to the report, Deep Learning is expected to have the fastest growth within the artificial intelligence space and will become the largest portion of total AI companies revenue.

"Artificial intelligence revenue projections are on a fast growth axis as they are increasing at a rate of CAGR 40% and are expected to be at a value of $3,061 million in 2024," the report said.

Moreover, increased demand for robots has led to a rise in investment and M&A in the Artificial Intelligence space.

According to the report, AI industry has received more than $11.5 billion of investments in the last three years and going forward, over $6 billion of VC investments are expected in 2017.

"The necessity of automating processes and the need for AI are reasons for the exponential growth in investments attracted by this space in the past few years," said Puneet Shivam, Head ? US, Co-head Services Vertical, Avendus Capital.

Shivam further said "today companies are allocating larger budgets to AI for making it an intangible asset to increase customer footprints and market share in India. And this will continue in future as newer and evolved versions of AI are introduced, shaping the dynamics of technology".

Some of the most active VC funds in this space at present are -- Data Collective, Khosla Ventures, Intel Capital, New Enterprise Associate, Google Ventures & Bloomberg Beta.

In terms of projected revenue share by vertical by 2020, Medical & Diagnostics is expected to account for the lion's share with 21%, followed by search (20%), sales & marketing (18%), autonomous vehicles (8%), law (7%) and cyber security (6%).

According to the report, Robotic Process Automation, is going to impact the ecosystem of businesses and services across different markets worldwide.

RPA uses computer software to process and automate routine, standardised tasks in support of an, organisation's knowledge workers.