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Why is AI booming now?

Why is AI so trendy all of a sudden? What brought this unprecedented surge in popularity about? Was it just ChatGPT's shenanigans? And is it indeed so sudden?

28 July, 2023
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Why is AI so trendy all of a sudden? What brought this unprecedented surge in popularity about? Was it just ChatGPT's shenanigans? And is it indeed so sudden? We're pretty sure all these questions have been occupying the thoughts of most of you.

After our useful piece on deep learning vs. machine learning, explaining the differences and intricacies of these two fundamental concepts of Artificial Intelligence, we couldn’t help but wonder what factors lie behind this remarkable boom in AI adoption in the first place.

Join your AI integration partner on this journey as we delve into the driving forces propelling AI's rise, businesses that have already embraced this cutting-edge technology, and how industries are set to be reshaped by AI. Next stop: how to integrate AI with existing systems.

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What's behind AI's sudden rise in popularity

Picture a world where machines think, learn, and adapt. Oh, wait, it's already here. What sets the stage for this captivating phenomenon?

Automation everywhere

Industries across the globe are witnessing a profound transformation through the power of AI-driven automation. This revolutionary approach involves harnessing intelligent algorithms and cutting-edge technologies to mechanize repetitive and manual tasks that were once solely human domain.

With AI's natural language processing, machine learning, and computer vision, businesses now have the means to optimize their operations, boost productivity, and minimize expenses. From manufacturing and customer service to data analysis and logistics, the integration of AI-driven automation has yielded unprecedented gains in efficiency, precision, and scalability.

Smart devices

The development of smart devices has also contributed to the AI boom since AI-powered smart homes provide unparalleled convenience, enhancing the overall quality of life with just a simple click. These smart home products, whether in the living room, dining room, kitchen or at the front door, can be effortlessly controlled through a single device or app, making them user-friendly for everyone.

The true value of AI lies in its ability to emulate human-like data analysis and processing, executing tasks as programmed, and learning user patterns in the process. This allows AI to predict future decisions and preferences, making it even more valuable in smart home applications.


Generative AI

One of the biggest culprits of AI's remarkable surge in recent months is generative AI, which uses algorithms to generate data, particularly images or text. OpenAI's ChatGPT, in particular, has catalyzed the rapid growth of this evolving technology, leading to a flourishing subcategory.

So much so that major companies like Microsoft, Google, Salesforce, and Adobe have enthusiastically embraced this trend, actively engaging in the development and implementation of generative AI solutions.

For several years now, Microsoft has been making significant investments in OpenAI, so it comes as no surprise that this tech giant has harnessed the potential of generative AI to revolutionize not only consumer products like Bing but also employee-oriented products like Dynamics 365.

Technological development

Recent technological developments have significantly contributed to the AI boom by enabling more sophisticated AI models and applications. Let's look at factors like computing power and data across the World Wide Web.

Increased computing power

Increased computing power has been a crucial catalyst for the AI boom. More powerful and efficient processors, along with advances in parallel computing, have enabled the training of complex neural networks at a much faster pace.

This accelerated training process allows AI models to process vast amounts of data and perform sophisticated tasks, leading to breakthroughs in various AI applications. Improved computing capabilities have also facilitated the deployment of AI systems, driving the integration of AI into various essential industries like healthcare or finance.

The Internet

The AI boom is built on data, and the data comes from the Internet. Chatbots lack human-like thinking capabilities since they do not truly understand the content they process. Their ability to mimic human speech results from consuming vast amounts of text data from the Internet, which serves as their primary source of information and significantly impacts their responses to users.

For example, The Washington Post conducted an analysis of a publicly available data set commonly used to train AI models, which reveals the extensive use of a 30-year treasury of web content as a primary source to educate neural networks in the present AI industry, leading the Internet to be one of the main contributors to AI boom.

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Business adoption

The business adoption of AI is rapidly increasing as companies embrace this transformative technology to improve efficiency, decision-making, and customer experiences.

Increased efficiency

Companies embrace AI to streamline operations, automate repetitive tasks, and optimize processes. AI-powered tools can handle complex data analysis and perform tasks faster and more accurately than humans. This efficiency leads to reduced operational costs, faster project completion, and overall improved productivity, allowing businesses to stay competitive in their respective markets.

Improved decision making

AI enables data-driven decision-making by analyzing vast amounts of information quickly. Advanced algorithms can identify patterns, trends, and insights humans might overlook. With AI-driven insights, companies can make informed, strategic decisions, minimizing risks and maximizing opportunities, ultimately leading to better business outcomes.

Increased personalization

AI also empowers companies to deliver personalized experiences to their customers. By analyzing customer data, preferences, and behavior, AI can tailor products, services, and marketing messages to meet individual needs. Personalization fosters stronger customer engagement, loyalty, and satisfaction, enhancing the overall customer experience.

Customer service

AI-driven chatbots and virtual assistants provide 24/7 customer support, addressing queries and issues promptly. These AI-powered systems can handle a wide range of customer interactions, reducing the burden on human agents and ensuring consistent, efficient support. Improved customer service leads to increased customer satisfaction and loyalty, driving business growth.


AI facilitates advanced data analytics, enabling companies to derive meaningful insights from large and complex datasets. AI algorithms can identify patterns, correlations, and outliers, helping businesses understand market trends, customer behavior, and performance metrics better. This data-driven approach empowers companies to make data-backed decisions and adapt their strategies for optimal outcomes.


What industries will AI change?

Several industries have already started reaping the benefits of AI, and their potential for substantial growth in the future is evident.

What industries will AI change?
What industries will AI change?

Impact of AI in transportation and logistics

AI is set to significantly transform the transportation industry. Self-driving cars and AI travel planners will reshape how we move from one place to another. Although self-driving technology is not perfect yet, it promises to provide efficient transportation in the future.

AI's predictive analysis will play a vital role in logistics by helping anticipate inventory needs and optimizing routes to reduce costs. Shipping companies will also benefit from AI, which can automate document checks, saving time and money and reducing delays.

Impact of AI in manufacturing

AI has been a boon to the manufacturing sector for decades. Since the 1960s and 1970s, the industry has embraced AI-driven robotic arms and other manufacturing bots. These industrial robots often collaborate with humans to handle specific tasks such as assembly and stacking.

In predictive maintenance, AI gathers production data to enhance failure prediction and planning, ultimately leading to cost-effective maintenance solutions for production lines. AI's potential in manufacturing also enables more precise demand forecasting and reduces material waste, contributing to overall operational efficiency.

Impact of AI in healthcare

The healthcare industry is quite an ideal environment for AI development since medical providers require vast volumes of accurate and relevant data, a need that AI can adeptly fulfill, streamlining the data collection process.

The potential of AI also shows promise in predictive healthcare. It can help with highly accurate predictive analyses, empowering doctors to better manage their patients' requirements.

Impact of AI in finance

The financial sector and AI are inherently intertwined, much like healthcare, as both involve handling vast amounts of data that require collation and organization. The banking industry has already begun harnessing AI's potential, particularly in detecting potential fraudulent transactions.

AI's applicability extends to the lending process as well. Through thorough analysis of the person's credit history, AI can provide detailed reports to banks, predicting the likelihood of timely repayments. This streamlined approach benefits customers while simultaneously reducing the risk of debt, which greatly benefits the banks.

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Impact of AI in education

AI in education will transform the learning experience for individuals of all ages. Through machine learning, natural language processing, and facial recognition, AI plays a pivotal role in digitizing textbooks, identifying instances of plagiarism, and even gauging students' emotions to assess their engagement and potential struggles.

Overall, AI will customize the learning journey to cater to each student's unique needs, offering personalized and targeted educational support. Integrating AI in education is believed to pave the way for a more adaptive and effective learning environment.

Impact of AI in media

AI's influence on media and communication is also far-reaching. One notable impact is personalized news delivery, where AI algorithms tailor content to individual preferences, ensuring a more engaging and relevant experience for users.

In journalism, for example, The Associated Press has already embraced AI through tools like Automated Insights, enabling the generation of thousands of earning reports stories annually. With the emergence of generative AI writing tools like ChatGPT in the market, new questions and discussions arise about their role and impact in journalism.

While AI offers numerous benefits in terms of efficiency and scalability, concerns about accuracy, bias, and maintaining journalistic standards also come to the forefront.

Impact of AI in retail and customer service

AI has been widely used in retail to optimize supply chains and manage stock levels efficiently. It also helps understand customer shopping behavior to improve store layouts and encourage more spending. Online retail also benefits from AI, which suggests relevant products to customers, maximizing sales and improving the shopping experience.

Speaking of customer service, chatbots and virtual assistants are among the AI-powered tools that enhance the customer service industry the most by providing meaningful insights and streamlining interactions between customers and providers.


The journey continues

In conclusion, the AI odyssey is now a revolution with no turning back. This unstoppable force is shaping tomorrow’s world, and in a few years’ time, it’s going to be really good. Like, really, really good.

We’ve learned that the ongoing AI boom is fueled by its prowess in handling large datasets, empowering decision-making, and automating tasks across various sectors like healthcare, finance, and transportation, leading to transformative outcomes.

While ethical considerations and job displacement are important, the future of AI is still rather promising. What can you and/or your company do? Responsible adoption and utilization of this technology are key for remarkable advancements and a more optimistic future.

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CEO and Founder of Merge

My mission is to help startups build software, experiment with new features, and bring their product vision to life.

My mission is to help startups build software, experiment with new features, and bring their product vision to life.

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