The Future of AI Engineering: Trends and Innovations Shaping

artificial intelligence engineering market

Artificial Intelligence or AI engineering is one of the newest and fastest-growing disciplines, which focuses on developing various types of AI-based tools, platforms, processors, and systems. Artificial intelligence engineering offers applications across a wide range of industries, majorly for the development of tools which includes autonomous systems, for manufacturing, automotive, energy, and retail among others.

The AI-based tools and platforms help in the elimination of various types of human errors, across multiple injuries, reducing the risk of accidents. It also helps organizations to understand, utilize, and analyze a wide quantity of data, which can be impossible for humans to perform, and it can also understand changes in trends. Artificial intelligence-based tools also help in improving the customer experience and can offer efficient customer support.

Use Case:

  • Automotive– In the automotive industry, the artificial intelligence engineering solution can help in developing multiple key services, like driver assistance solutions, automation in manufacturing, and vehicle autonomy. The driver assistance system is an artificial intelligence-based tool that helps the driver by offering mild control of the vehicle, like object detection, lane assist, and multiple safety features.
  • Healthcare- In the healthcare sector, artificial intelligence engineering services can help in developing new and more advanced tools and platforms for drug research, drug delivery, and patient care. With advanced tools for patient care, the disease diagnostic capability of the industry will increase significantly, creating a quicker and more accurate platform to detect several diseases.
  • Manufacturing- In the global manufacturing sector, artificial intelligence services can offer the capability to integrate AI-based technologies and tools into manufacturing, ensuring an efficient and optimum manufacturing process.

1. Increasing adoption of AI in the automotive industry

With the growing demand for AI and automation in the automotive in the global market, the utilization of AI engineering in the industry is expected to witness a significant surge. In the automotive market, artificial intelligence offers a wide range of applications. In the industry, artificial intelligence, helps the car manufacturer optimize the manufacturing process. Artificial intelligence is also been integrated into the vehicles, which helps to offer autonomous driving. In electric vehicles, artificial intelligence also helps the vehicle to establish connections between multiple cars, and it also provides a wide range of information, like vehicle conditions, passenger safety, and driving conditions.

International Organization of Motor Vehicle Manufacturers (OICA) in its sales report stated that the production of global automotives increased significantly over the past few years. The agency stated that in 2021, a total of 80.004 million units of automobiles were produced in the global market, in which the Asia-Oceania region accounted for a greater share, producing about 46.768 million automobiles, followed by 16.190 million produced in the American region, and 16.137 million produced in the European region. In 2022, the global production increased to 84.830 million units, with about 50.021 million vehicles produced in the Asia-Oceania region. In 2022, about 17.753 million units were produced in the American region, and about 16.032 million units were produced in the European region. In 2023, the global production witnessed an increase of about 17%, reaching 93.546 million units. In 2023, the total production of automobiles in the Asia-Oceania region was recorded at 55.115 million units, followed by 18.122 million and 17.753 million produced in Europe and the American region respectively.

Figure 1:  Automotive Production Across the Globe, Million, 2021 to 2023

automotive production across the globe

Source: International Organization of Motor Vehicle Manufacturers

2. Increasing investments in the AI sector.

The increasing global investments in AI technology are among the key factors propelling the growth of AI engineering in the global market. With increasing public or private investments in the AI technology sector, the global AI-based technology landscape is estimated to witness significant growth. Various countries across the globe introduced key policies and investment strategies to boost the AI landscape in their nation. Countries like India, China, Japan, the USA, and France are among the fastest developing nations in the technological sector, which aims to further boost the technological industries by developing the AI sector.

For instance, in July 2024, the Union Government of India, allocated over INR 551.75 crore from the union budget of the nation, for the IndiaAI mission of the nation. Through this investment, the government aims to enhance research and application of AI in the nation and seeks to strengthen the position of the nation as a leader in the AI sector. Similarly, SAP India, in its report, stated that about 77% of the start-ups in the nation invest in newer technologies like artificial intelligence, machine learning, and blockchain.

In November 2024, NHK (Japan Broadcasting Corporation) in its news stated that the Government of Japan plans to fund a sum of US$ 65 billion, for the development of AI and chipmaking in the nation. Furthermore, the Microsoft Corporation, in April 2024, announced the company’s investment of about US$2.9 billion in the AI and cloud infrastructure landscape in the nation. Through this investment, the company also aims to boost the research and cybersecurity landscape of Japan. The company also announced its aim to offer training in advanced technologies like AI to about 3 million individuals in the nation. The company plans to offer training through programs focused on society and organizations’ assistance. Similarly, in April 2024, Oracle, a global leader in the technological sector, also announced an investment of about US$8 billion for the development of AI and cloud computing landscape in Japan. The company aims to develop its footprint across the nation through Japan.

Key Developments

  • In November 2024, L&T Technology Services Limited, a global technological leader based in India, announced the acquisition of Intelliswift, a Silicon Valley-based technological provider. Through this acquisition, L&T aims to boost product development, platform engineering, and data & AI capabilities.

In the global AI-based technology market, AI engineering plays a critical role in enhancing the capability of AI technology across multiple industries. With the increasing global demand for AI technology across multiple industries and the introduction of key investment strategies and policies by the governments of various governments, the demand for AI engineering is set to achieve greater growth.

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