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“The world has already poured so much money into artificial intelligence that it is now eager to see some return on its investment. To achieve this, artificial intelligence (AI), which currently exists mainly in the form of software, would have to take on a physical form on an industrial scale, for example in the form of humanoid robots,” said László Palkovics, Government Commissioner and head of the brand-new Automotive Industry and Artificial Intelligence Coordination Institute at the University of Debrecen.
The institute was established founded on BMW’s automotive background, and one of the focuses of its research is how to create a humanoid robot industry in Hungary based on the know-how and technology available in automotive platforms.
According to László Palkovics, this could be one of the most sensible answers to the question of how to prevent the artificial intelligence (AI) market bubble, which is rapidly inflating, from bursting.
The idea seems bold, but according to László Palkovics, it is not at all, as AI is deeply integrated in the automotive industry. For example, a self-driving – or, in other words, fully autonomous – electric car has more than fifty AI-controlled systems, but even the latest versions of “ordinary” combustion engine cars have dozens of AI controls. In other words, we can say that an autonomous car is itself a robot, even if it is not humanoid. The manufacture of humanoid robots in the automotive industry could also be a way of utilizing the sector’s potential excess capacity by applying the knowledge and technology available. And there are signs that this could happen soon.
Another argument in favor of humanoid robots is that there is plenty of work that is currently not being done by either humans or machines, even though it is needed.
Perhaps the greatest need for them is in the field of healthcare, where they could, for example, replace the nursing assistance required to move patients with limited mobility, but they could also be useful in dangerous mines or even in fruit picking.
Humanoid robot development is, of course, taking place in many parts of the world, but no country has yet taken a leading role in this field. In any case, market analyses suggesting that humanoid robots are already marketable and will become even more so in the future seem to be increasingly accurate.
Photo: Pixabay
According to Goldman Sachs, the market will be worth $38 billion by 2035, and with the number of robots in use in the US expected to reach nearly 80 million by 2050.
The AI boom is eerily reminiscent of the dot-com bubble, which then burst. In the current situation, there are a number of technology companies that have not yet generated a single cent in revenue, but even in the case of Microsoft, we see that only 5 percent of the money invested has been returned in the form of revenue.
- Only 3% of adult users in the US are willing to pay for AI assistants and chatbots, for example, which represents a market of $12 billion,
- while global sales are estimated at around $49.5 billion. These amounts are nowhere near the investments made.
All this indicates that consumers and business users have not yet taken to these software programs, therefore expectations that the sector would generate $600 billion in revenue last year have fallen far short. At the same time, investment demand continues to grow. According to Bank of America’s calculations, for example, 83 percent of the $1 trillion to be invested in data center development by 2030 will be consumed by capacity-expanding developments designed to satisfy AI.
László Palkovics considered it important to note that market bubbles are completely natural for very new technologies, and regardless of how and when the current phenomena will smooth out, the key to the future is artificial intelligence, and Hungary cannot afford to miss out on the opportunities it offers.
This is what motivates the examination of the feasibility of humanoid robot manufacturing, which is why more than HUF 70 billion (EUR 178.5 million) from Ginop funds is being provided for developments by companies for this purpose. He hopes that support agreements with smaller companies can be concluded this year, while those with larger companies may be concluded next spring.
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p style=”text-align: justify”>Via Világgazdaság; Featured photo: Pexels
The post Hungary Eyes Humanoid Robot Industry to Harness AI Investments appeared first on Hungary Today.
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