Embedded AI could increase global SME value by £500bn
According to the Bessemer Cloud Index, a benchmark that tracks the performance of emerging public companies, the current market cap is around $1.5 trillion. With this figure in mind, a mere 10% value addition from AI could inject $150 billion into SMEs across the globe. However, Lee Chin Jian, Vice President at DAI Magister believes the potential value-add of the business applications of embedded AI could be up to two to three times that amount, equating to around $500bn (£392bn).
Jian said: “Adapting generative AI for business use is a complex task that often requires the expertise of enterprise-grade tech companies. These companies possess the skills to integrate AI with existing systems, handle specialised data, and provide essential information and analysis.
“Virtually no major enterprise-grade software company has the necessary AI expertise to reconfigure its product suite. Instead, they resort to acquiring AI start-ups to bolster their capabilities and ensure a smooth integration of AI into their workflows and operations. This trend creates a compelling market opportunity for specialised enterprise AI businesses that offer solutions designed for seamless embedding within existing enterprise systems and across different business functions.
“The impact of AI goes beyond providing specialised solutions to established industries. It also leads to the emergence of “Embedded AI”, which refers to the seamless integration of AI-augmented services into end-customers’ everyday operations. This integration of AI into various aspects of daily business operations opens up significant possibilities for further growth. Based on the current value of the SME market, this growth figure could be $500bn, possibly even more.
“Embedding AI in legal and compliance operations will be particularly transformative for enterprises. As AI adoption grows, ensuring its reliable operation becomes critical, especially in sectors like financial services where accuracy is paramount. Discussions around monitoring AI will intensify, leading to increased investment and job creation for overseeing and regulating its use.
“In terms of regulatory compliance, AI keeps businesses up-to-date with changing laws, reducing legal risks, and protecting their reputation. Furthermore, AI’s predictive capabilities assess historical data, identify potential risks, and develop proactive risk mitigation strategies, helping businesses stay ahead in safeguarding against liabilities.
“AI co-pilots will also become an integral part of enterprises across diverse business functions, transforming how businesses operate and make decisions. For skilled workers, AI will be an invaluable assistant in navigating complex decision-making processes, providing valuable insights to tackle intricate and challenging tasks more effectively. Less-skilled workers will witness the automation of repetitive and mundane tasks, liberating their time and energy to focus on activities that bring greater value.”
Jian concluded: “Akin to the advent of outsourcing, the Internet, and the adoption of computers in the workplace, the transformational potential of AI represents a vast and growing opportunity and a ground-breaking leap into a future brimming with unprecedented possibilities for enterprises.”