12 AI app development stats you should know about

Developing an AI app is the best way to stay competitive in today’s app market.

And there are good reasons to do it beyond just following a trend.

If you’re still unsure if you should develop an AI app, we’ll back that statement up with statistics.

Here, we’ll discuss 12 AI app development stats you should know about.

Let’s go!

AI market will reach $1.84 trillion by 2030

The AI market has rapidly grown in recent years.

And that growth is expected to continue.

According to Next Move Strategy Consulting, the AI market size will reach $1.84 trillion by 2030 with a compound annual growth rate (CAGR) of 32.9%.

source: Statista

That’s why getting into AI app development now is a good idea.

If you don’t, you’ll risk falling behind your competitors.

And nobody wants to play catch-up.

Also, you’ll miss out on getting valuable experience with AI if you don’t jump on the AI train soon.

No one can predict where AI will be by 2030, just like how very few predicted just how big of an impact generative AI would have.

If you and your team have experience with AI, you’ll have a much easier time capitalizing on new AI opportunities in the coming years.

And that will pay off massively in the long term.

53% of AI projects reach production

Now, this is a surprising stat – Gartner estimates that only just over half of AI projects reach production.

That means that almost half of AI projects never go beyond the prototype stage.

But, why does that happen? And what do you need to do to avoid your AI app ending up the same way?

The main reason Gartner highlights is that organizations lack the tools to create and manage a production-grade AI pipeline.

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In simple terms, organizations lack the resources to manage AI models from start to finish.

One reason for that is a shortage of skilled talent.

If you’re facing the same issue, hiring a dedicated team can help you bridge that skills gap.

Another reason is that they have the wrong approach to AI development.

You need to start with a problem that AI can solve and not try to find a problem to solve after creating an AI solution.

That’ll allow you to make the most of your AI app.

43% of organizations find scaling AI challenging

Scalability is one of the most important factors you should keep in mind when developing an AI app.

We’ve identified not planning for scalability as one of the common mistakes you should avoid in AI app development.

And it’s a major challenge for organizations getting into AI development.

According to Statista, scaling up tops the list of challenges they face when deploying AI and machine learning models.

source: Itransition

You’ll likely face issues with scaling your AI solutions, too.

Luckily, you can take steps to solve those problems.

One way you can tackle scalability issues is by using cloud-based AI platforms to develop your AI app, such as:

• AWS AI
• Azure ML
• Google Cloud AI

Since they’re cloud-based, that makes scaling your AI models much easier and cheaper.

And that’s why they’re worth your time.

92% of companies use AI personalization for growth

Personalization is the name of the game in the modern business world.

And AI is one of the best ways to personalize your app.

Twilio Segment’s 2023 The State of Personalization report shows that more than 9 in 10 companies are using AI personalization to drive business growth.

You should, too.

source: Medium

And there are good reasons why you should take that step.

Research by Epsilon shows that 80% of customers are more likely to make a purchase when a brand offers a personalized experience.

And according to Accenture, 41% of customers are willing to switch companies if they don’t get a personalized experience.

All of these stats show just how important personalization is to your customers.

If you don’t offer personalized experiences, you’ll fall behind and lose your customers.

And AI can help you take your personalization efforts to the next level.

59% of organizations that adopt AI see revenue growth

Adopting AI can significantly increase your revenue.

And it goes beyond AI app development.

McKinsey’s The state of AI in 2023 report goes into detail about how AI adoption affects revenue.

59% of respondents said that adopting AI in at least one function increased their revenue.

Here are the concrete numbers broken down by function:

source: McKinsey

The report also showed a 42% said they had a decrease in costs after AI adoption.

And these are just figures related to the adoption of AI tools for these specific functions.

Your revenue increases from developing an AI app are likely to be even higher.

That’s why it’s a good idea to invest in AI app development.

Global spending on AI will reach $154 billion in 2023

Spending on AI is increasing every year.

And it’s growing at a rapid pace, too.

IDC estimates that global spending on AI will reach $154 billion in 2023, which is an increase of 26.9% compared to 2022.

They also estimate that global spending on AI will double and exceed $300 billion by 2026.

This includes spending on:

• AI software
• AI hardware
• Services for AI-centric systems

But, the most revealing statistic is just how broad spending on AI will be in the coming years.

Out of the 36 AI use cases they identified, only one is expected to have a CAGR under 24%.

It’s also interesting to note that banking and retail lead the way in AI spending:

source: IDC

What all these stats prove is that you can’t just ignore AI and that the next few years will be key for AI investment.

And you need to make sure you don’t miss out.

AI will create 97 million new jobs by 2025

We’ve all seen the alarmist headlines that AI will replace millions of jobs.

And it’s true, in a sense.

The World Economic Forum (WEF) estimates that by 2025, 85 million jobs will be replaced by AI. 

But, as the expression goes – “when one door closes, another opens”.

In the same report, WEF estimates that AI will create 97 million new jobs in the same time frame – that’s a net gain of 12 million jobs.

Here’s a closer look at the hardest-hit roles:

source: Beetroot Academy

And these changes are here to stay.

But, there’s one issue that you’ll likely face – a shortage of workers skilled in AI.

A good way to solve it is by reskilling members of your team to take on these new roles.

Luckily, there are a number of beginner AI courses on the market, such as:

• IBM’s Introduction to AI
• Microsoft’s Azure AI Fundamentals
• Google Cloud’s Machine Learning courses
• Wharton’s AI for Business

These will help them get started on their AI journey and give them the skills they need to thrive in their new roles.

77% of companies are either using or considering AI

AI has already had a huge impact on a number of industries beyond just AI app development.

IBM’s Global AI Adoption Index 2022 shows that 77% of companies are either using or exploring the use of AI.

And adoption is accelerating, as 53% of IT professionals say they’ve accelerated the rollout of AI over the last 24 months – a 10% increase from 2021.

But, adoption is uneven.

There are significant geographical differences in AI adoption, with Chinese and Indian companies leading the way.

Nearly 60% of IT professionals from Chinese and Indian companies said their companies actively use AI.

That’s a lot more compared to the U.S. (25%) or the UK (26%), for example.

Here’s a detailed breakdown:

source: IBM

Another striking statistic is that large companies are twice as likely to have deployed AI than smaller companies.

So, if you’re running a smaller company, adopting AI can give you the edge over your competition.

And that’s enough to make it worthwhile.

Generative AI could increase profits by $4.4 trillion a year

Generative AI has taken the world by storm – and for a good reason.

McKinsey estimates that generative AI has the potential to increase corporate profits by up to $4.4 trillion a year.

This is mainly because of its impact on worker productivity and new use cases.

source: Consultancy.uk

McKinsey found 63 generative AI use cases where it could raise productivity, such as:

• Customer service interactions
• Generating creative content
• Code generation

And they’ve also found some interesting cross-industry trends.

Across all industries, three-quarters of the value from generative AI will come from 4 areas of business: 

• Customer operations
• Marketing and sales
• Software engineering
• Research and development

And these are the most critical areas for any business.

With generative AI you can increase your productivity in those areas, directly increasing your revenue.

That’s why you should adopt generative AI as soon as you can.

85% of companies think AI will give them a competitive advantage

AI can give you an edge over your competitors.

Most of them would agree with that, too.

Research by the Boston Consulting Group shows that 85% of companies believe AI will give them a competitive advantage.

But, why do they believe that?

Think about AI-powered predictive analytics tools for a second.

Tools like Tableau and Alteryx can analyze huge amounts of data and help you quickly make data-driven decisions.

source: Tableau

These tools also eliminate human error which can save you a lot of money in the long run.

And the best part?

They can do all that in minutes after you’ve uploaded your data.

And that’s just one example of how AI can give you a leg up over your competitors.

Think of the dozens of other processes you can automate with AI and increase your team’s productivity.

That’s why almost everyone thinks AI can give them a competitive advantage – and they’re definitely right.

ChatGPT costs $700,000 a day to run

ChatGPT needs no introduction.

It’s one of the most successful AI apps ever developed, reaching 100 million users in just two months after launch.

But, that success comes at a price.

According to The Information, ChatGPT’s daily running costs are as high as $700,000.

The main reason for that is the high cost of infrastructure, like servers, needed to keep the app running.

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And that’s not the only major cost OpenAI had to pay to put ChatGPT on the market.

Training their GPT-3 model cost $4 million, for example.

High costs like that are one of the biggest cons of AI app development.

Still, they were worth it.

ChatGPT has brought AI to wider public attention and kickstarted the AI revolution.

And that’s what makes even those high costs worthwhile.

37% of people can’t distinguish between AI chatbots and humans

AI chatbots have come a long way in the last few years.

A study by the University of Florida found that 63 out of 172 volunteers (37%) couldn’t tell the difference between a chatbot and a real person.

And that’s not the only research that confirms those numbers.

AI21 ran a “social Turing game” where they paired up players who had to guess whether they were talking to a human or a chatbot.

source: ZDNET

And the results were strikingly similar – 32% of people couldn’t tell the difference.

These numbers go to show that you can rely on chatbots like Tidio’s Lyro to handle common customer service questions.

Many of your users won’t be able to tell the difference and you can save a lot of money.

Conclusion

AI app development is the next big thing.

And the stats we’ve covered prove exactly why that’s the case.

If you want to learn more, check out how we build AI apps and reach out if you need help building yours.