JP Morgan Chase Identified 11 AI Industry Verticals
Investment Possibilities with Artificial Intelligence
AI adoption at an inflection point
In practice, Artificial Intelligence is a group of technologies that help facilitate the discovery and analysis of information for the purpose of making predictions and recommendations, support decision making, facilitate interactions, and automate certain responses. Since AI applications are continually transforming business models, the scope of traditional technology applications will scale up towards a multi-channel world with recommendation systems, virtual assistants, chatbots, and AI-managed marketing platforms.
Essentially a model that helps identify patterns and associations from large amounts of data, Artificial Intelligence enhances quality control and improves operational effectiveness through digitized information assets. This allows businesses to focus time and resources on identifying new opportunities and customers, as well as different channels to market.
Apart from large technology firms, the Banking and Securities sector is one of the leading industry verticals in Artificial Intelligence adoption. The business has relatively high digital maturity, access to troves of data, a desire to glean patterns from historical events as a guide for future decisions, and certainly has tasks that are amenable to automation.
Thus far, AI has made its way into Financial Services with automated trading and investment discovery, trading strategies, robo-advisors, voice-based commerce, customer behavior analysis, and chatbots for customer services, identity verification and fraud detection.
| Industry Vertical | INDUSTRY AS A % OF TOTAL GLOBAL IT SPEND | Sample AI Use Cases |
| Banking & Securities | 19% | Automated trading and investment discovery, trading strategies, robo-advisors, voice-based commerce, customer behavior analysis, chatbots for customer services, identity verification and fraud detection. |
| Government | 17% | Smart surveillance, threat detection, Smart Cities and Utilities, AI-enhanced and personalized education and training, chatbots for info distribution and citizen engagement. |
| Manufacturing & Natural Resources | 17% | Predictive maintenance, machine learning-driven insights for yield improvement and optimization. |
| Communications & Media Services | 16% | Customer analytics, forecasting, customer demand trends, video analytics and computer vision interactivity (e.g. in video games and other immersive media). |
| Retail | 7% | Customer analytics, forecasting, anticipating demand trends, reducing revenue churn, supply chain management, warehouse automation, chatbots for customer services and conversational commerce. |
| Insurance | 7% | Claims management and fraud detection, analyzing customer behavior and reducing revenue churn, automated underwriting, pricing, conversational platforms for customer services, complying with regulations and trading strategies. |
| Utilities | 5% | Enhanced supply-demand management based on AI-driven analytics, predictive maintenance, dynamic pricing based on consumption analytics provided by smart meters, for example, chatbots for customer service. |
| Healthcare Providers | 4% | Diagnostics, image analytics for early disease detection, drug discovery, patient monitoring (pre-emptive warning systems) and personalized medicine and treatment. |
| Transporation | 4% | Self-driving vehicles, advanced driver assistance systems and personalized content delivery/productivity enhancement tools used by providers of transportation services. |
| Education | 2% | Customized/adaptive learning programs and skill upgrade programs based on real-time insights gleaned from job market trends. |
| Wholsale Trade | 2% | Warehouse automation and inventory management based on insights gleaned from demand analytics and autonomous delivery. |
Source: J.P. Morgan, Gartner, Capgemini
Report from November 27, 2017
