Let’s all win with AI: IBM ranked #1 for AI lifecycle software market share in IDC report

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Today, industry leaders remain laser-focused on expanding their digital advantage to increase agility, innovation and resiliency, all while setting their sights on developing future revenue streams. Artificial intelligence (AI) is an essential instrument for reshaping businesses both now and in the future, with three in four organizations deploying or ramping up their AI efforts, according to Morning Consult’s April 2021 research.

Amidst this era of digital reinvention, IBM lays claim to an impressive streak of AI market leadership. In the latest IDC market share report, IBM was ranked #1 in AI Life-Cycle Software, with the largest 2020 market share at 13.7% and +46.6% y/y based on the most recent data available. [1] IBM had already ranked #1 in market share in Worldwide AI Software Platforms for five years in a row, (which included IBM Watson® Studio), according to the IDC Worldwide Semiannual Software Tracker (2019H2).

AI-enabled digital transformation is driving growth

IDC points out in its 2020 report: “Enterprises across industries and geographies are increasingly adopting AI/ML technologies to enable innovative use cases, improve customer experience, enhance employee experience, and accelerate innovation as part of their digital transformational journeys. AI/ML technologies are also enabling organizations to innovate faster to bring products/applications to the market sooner.” [4]

According to research from the IBM Institute for Business Value, an “all-in” commitment to AI is paying off, with advanced AI adopters attributing 10-12% points of revenue to AI. Other benefits mention cost reductions, operational efficiencies and a 6.3% average increase in business-unit revenue directly attributable to AI initiatives.

In both 2020 and 2021, IBM Watson products earned numerous awards for their outstanding product design, including two Red Dot Design Awards, one of the most sought-after international seals of quality in the design industry.

This consistent validation underscores the value of IBM’s work with organizations like Kyocera, Autostrade per l’Italia and Electrolux to transform everyday products, services and infrastructure, such as electronic components, household appliances and roadways. Consider also the benefits to those whom AI impacts at every stage of life:

AI’s value as a prime lever of transformation is only likely to increase as business leaders expect half of their companies’ revenues five years from now to come mostly from sustainable and inclusive products, services or businesses that do not yet exist, according to new research from McKinsey and Company. That’s about twice as much investment in “new business building” as in recent years. [5] 

The increasing need for trustworthy AI

Even as organizations benefit from AI, IBM is well-aware of the tide of concerns over data privacy and responsible use of technology and remains committed to trust as one of its defining characteristics of AI for business. This is the idea that people are entitled to understand how AI arrived at a decision, and trust is particularly important to companies currently deploying AI. IBM’s efforts to lead the industry by embracing AI ethics as a core business tenet was detailed by the World Economic Forum in a 2021 case study.

IBM continues to advance its mission to develop and advance ethical AI technology guided by a trustworthy AI framework comprised of three tenets: AI ethics at the core, governed data and AI technology and an open and diverse ecosystem.

An AI Ethics Board reviews all AI efforts across the company, ensuring its own technology adheres to five pillars of governed data and AI technology:

  1. Transparency
  2. Explainability
  3. Fairness
  4. Robustness
  5. Privacy

To help clients put trustworthy AI into practice, it formed a team that uses human-centered design to build AI strategies that treat trust as a first-class citizen.

Governing the end-to-end data and AI lifecycle is essential for successful digital transformation. Designed with the needs of users in mind, products like IBM Cloud Pak® for Data, IBM Cloud Pak for Business Automation and IBM Cloud Pak for Watson AIOps help IBM maintain its standing among vendors offering similar AI lifecycle software.

Businesses everywhere have entered a new era of digital reinvention, fueled by innovations in hybrid cloud and AI. IBM is uniquely positioned to help our clients succeed in this radically changed business landscape by partnering with them to deliver on the five levers of digital advantage: predict and shape data-driven outcomes, automate at scale for productivity and efficiency, secure all touchpoints all the time, modernize infrastructures and transform with new technology-driven digital business models.

Sources

[1] International Data Corporation (IDC), Worldwide AI Life-Cycle Software Market Shares, 2020: Focus Moves Up the ML Development Stack, Away from the Infrastructure. Doc # US47391721, July 2021.

[2] International Data Corporation (IDC), Worldwide Artificial Intelligence Software Platforms Market Shares, 2019: The Battle Has Begun. Doc #US46652020, July 2020.

[3] International Data Corporation (IDC), Worldwide AI Life-Cycle Software Market Shares, 2020: Focus Moves Up the ML Development Stack, Away from the Infrastructure. Doc # US47391721, July 2021.

[4] International Data Corporation (IDC), Worldwide AI Life-Cycle Software Market Shares, 2020: Focus Moves Up the ML Development Stack, Away from the Infrastructure. Doc # US47391721, July 2021.

[5] Leap by McKinsey, 2021 global report: The state of new-business building. December 2021

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