COVID-19 is speeding up the “Homebody Economy” with AI innovation

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Posted on: May 6, 2020 7:30 pm EDT

A new global economy is emerging, driven by the proliferation of artificial intelligence

The COVID-19 pandemic has changed irreversibly the way in which people run their businesses and take care of tasks. With millions of people across the globe following stay-at-home orders, new technologies are becoming a trend and possibly a new normal. That’s how the ‘Homebody Economy’ activities are increasing exponentially due to people opting for online resources to take care of things instead of leaving home. This means that users around the world are looking into cheaper, faster and more user-friendly tools; therefore, artificial intelligence (AI) companies have been developing new solutions that are speeding up the expansion of the digital era.

One of the main sources of Homebody Economy is online gaming, which has been getting a massive boost since the pandemic started. As the testing ground of emerging AI technologies, gaming is bound to grow even more in the next couple of years, according to an Artificial Intelligence Journalism for Research and Forecasting’s forecasting study. By 2025, AI-enhanced technologies like virtual reality are expected to be at the center of gamers’ interest. It was estimated that this year players will be spending close to $4.5 billion on immersive gaming.

According to a Nielsen Holdings study, consumers are seeking more telemedicine solutions and are more willing to embrace technological products since the COVID-19 pandemic started. For instance, consumer behavior changes as AI is integrated with more platforms, such as Fintech apps, to provide payment solutions, which are already gaining significant territory. “It is both a challenge and an opportunity for brands and retailers. With the advent of 5G, AR and artificial intelligence, and a shifting market environment, brand owners should be continually embracing change while exploring new business strategies,” indicates the study.