Deloitte recently published the "AI Trend Report," offering insights into emerging technologies like artificial intelligence and augmented reality (AR). The report highlights how these innovations are shaping the future of digital interaction and business strategies.
According to Deloitte, by 2018, over 1 billion smartphone users are expected to have at least one AR content creation experience. By 2020, direct revenues from AR are projected to reach $1 billion—ten times higher than in 2018. While AR was initially used for simple features like face filters, it is now evolving into more immersive experiences, such as interacting with virtual stars or animals, enhancing user engagement through realistic simulations.
Smartphone penetration is also on the rise. Deloitte predicts that by the end of 2023, 90% of adults in developed countries will own a smartphone, up from 85% in 2018. Global smartphone sales are expected to hit 1.85 billion units by 2023, reflecting a 19% increase from 2018. The average selling price is expected to climb to $350, a significant jump from 2017, while the number of high-end smartphones priced above $1,000 is expected to reach 180 million.
The evolution of smartphones will be driven by improvements in connectivity, processors, cameras, software, AI capabilities, memory, and sensors. These advancements will enhance user experiences and enable more sophisticated applications.
In 2018, 45% of global adult smartphone users expressed concerns about excessive phone use, with two-thirds of those aged 18–24 believing they spend too much time on their devices. However, despite this, only 3% of people are considered truly addicted, according to data from 2017, when individuals checked their phones about 50 times a day.
Machine learning is also gaining traction. Deloitte forecasts that annual sales of machine learning chips for data centers will grow from 100,000 in 2016 to 800,000 in 2018. These chips will increasingly rely on AI-driven technologies. Meanwhile, more companies are adopting machine learning, with its usage expected to double in 2018 and quadruple by 2020. Despite this growth, challenges such as talent shortages, lack of mature tools, and data accessibility remain barriers to widespread adoption.
In the entertainment sector, Deloitte estimates that live events and broadcasts will generate over $545 billion in direct revenue in 2018, with the majority coming from traditional industries, while a smaller portion comes from live streaming and e-sports.
Digital subscriptions are also on the rise. By 2020, Deloitte expects 680 million global subscribers to access digital content, with an average monthly fee under $10. This includes 375 million video-on-demand subscriptions, 150 million music subscriptions, 35 million game subscriptions, and 20 million news subscriptions.
Ad-blocking is becoming a major issue for online advertisers. In North America, 80% of adults use at least one ad blocker, with 50% using two or more. This trend poses a growing challenge for the digital advertising industry.
Traditional TV viewership is declining, with a 5% to 15% drop expected in 2018 and 2019 in the U.S., Canada, and the UK. However, this decline is not yet a tipping point but rather part of a long-term trend observed over the past seven years.
Mobile internet is set to become more dominant, especially with the rollout of 5G technology. Deloitte predicts that 20% of North American households will access all internet data via mobile networks in 2018, signaling a shift in consumer behavior.
Finally, in-flight connectivity (IFC) is also expanding. By 2018, 1 billion passengers are expected to fly on Internet-connected aircraft, a 20% increase from 2017. With 10% of passengers willing to pay for IFC, airlines could generate around $1 billion in additional revenue.
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