Global Consumer Trends
Artificial Intelligence (AI) has become a key trend with a high growth rate in recent years. The market is currently worth more than US$20 billion and is estimated to grow further to about US$200 billion by the year 2026. Artificial Intelligence technologies are simulated to mimic human behavior and activity. North America has the largest market for AI technology, with a valuation of about US$10 billion. The industry is growing at a fast rate, especially in the fields of machine learning and analysis. The rising demand for virtual assistants also enhances the growth of the AI industry (Benčić et al., 2018). Other aspects driving the demand for AI technology include the growing 5G technology, cloud connections, and increased investments in blockchain technology. Technology giants like NVIDIA, Oracle, and Intel Corporation are investing heavily in Artificial Intelligence projects. However, most organizations are finding it hard to adopt the technology due to huge investment requirements, algorithm unreliability, and the privacy of data (Salah et al., 2019).
The industry shows the potential for growth and improvements in terms of customer service and efficiency levels. The high need for personalized services and products is an indicator of future industry development. Many investors are also interested in the ‘young’ industry because of its potential. This is exhibited by the launching of AI awards that recognize companies and individuals, including university students, that are highly involved in the Artificial Intelligence industry. AI has the potential to transform normal ways of life and work. Although many customers are eager to embrace AI technology, there are concerns over the loss of human touch and the replacement of human resources by robots. It is up to the organizations and professional individuals in the industry to convince the majority of people of AI’s benefits in their efforts to secure a market base for their products and services. This will take some time, especially given the human nature for fear of the unknown (Benčić et al., 2018).
Many consumers of technology seem to be misguided or have inaccurate information about AI. Some fail to recognize that they use technology in their daily lives. For example, some people do not know of the existence of AI technology in devices with virtual home assistants and predictive suggestions. Examples are the Amazon Alexa and Google Home. Recently, NVIDIA Corporation had the quickest results on measuring benchmarks for AI. Demystifying some of the information and concerns that people have regarding AI will be a massive step toward the embracement of AI by most consumers. For organizations to achieve this, they will have to ensure transparency in their operations, improve customer experience, and provide the necessary guidelines to safeguard private information.
The need for more convenience in transportation is also a major trend seen in the past few years. As populations become more urban, more people are seeking ‘frictionless mobility.’ This refers to the ease and convenience of movement using various modes of transport. This is enhanced by factors like economic growth, social cultures, and access to higher education. The need for better transportation also arises due to issues like traffic congestion and air pollution. More people are seeking transportation services that suit their individual needs and concerns. Most of us prefer using different options for mobility based on budgets, occasions, and weather to reach their destination. Advancements in technology enhance this trend. There are numerous applications for navigation and instant mobile payments to improve the convenience of transport services.
In the near future, businesses are expected to offer multiple options for transport to suit specific customer needs. They could also offer multiple options for individual travellers who are travelling to specific locations over a long distance. Businesses will have to provide 24/7 transportation services as consumer needs continue to diversify. The need for personalized transportation will have huge impacts on other industries like insurance and finance. Firms in these industries will get the opportunity to extend their services and remain competitive. Major players in the transportation industry are already taking advantage of this aspect of customer wants. Most are working on strategic solutions to transform the transportation industry (Fountaine et al., 2019).
The automotive industry plays a crucial role in these developments in transport. Various companies in the industry are adopting technologies that optimize processes to reduce the costs involved to offer more value to customers. One of the biggest challenges faced by automotive companies is the lack of skills and expertise in applying technologies that re-invent customer experiences. Most industries that support transportation will have to connect and integrate their technologies and services with multiple devices. (Benčić, et al., 2018). This is especially important for software developers in developing systems and applications that are easy to use. The great concern for sustainability also influences the automotive industry. Many companies in the automotive industry are working on delivering vehicles with systems that integrate human aspects to create great personal experiences.
Autonomous vehicles are gaining much recognition in recent years. Many companies in the automotive industry are working on developing autonomous vehicles with the aid of AI technology. For example, Nu Tonomy, a technology-based organization, developed nuCore, that enables perfect autonomous vehicle handling to navigate high traffic situations. Recently, they formed a partnership with Lyft to offer experience with customers in Boston (Sumalee, 2018).
References
Benčić, F., Nemet, S., Barać, M., & Kukolj, D. (2018, November). Trends in AI-based Automotive Industry using Patent Analysis. In 26th TELFOR 2018.
Fountaine, T., McCarthy, B., & Saleh, T. (2019). Building the AI-powered organization. Harvard Business Review, 97(4), 62-73.
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Salah, K., Rehman, M. H. U., Nizamuddin, N., & Al-Fuqaha, A. (2019). Blockchain for AI: Review and open research challenges. IEEE Access, 7, 10127-10149.
Sumalee, A., & Ho, H. W. (2018). Smarter and more connected: Future intelligent transportation system. IATSS Research, 42(2), 67-71.
