Global spending on artificial intelligence, including software, hardware and services for AI-focused systems, will reach $154 billion by 2023, an increase of 26.9% over the amount spent in 2022, according to a forecast by International Data. Corporation (IDC) published on March 7.
The consultancy expects a compound annual growth rate (CAGR) of 27% during the period 2022-2026. AI spending is expected to exceed $300 billion by 2026, according to IDC.
A sign that the industry will do well in the “next five years” according to IDC, of the 36 AI use cases identified by IDC, only one will have a CAGR of less than 24%.
Three of the top use cases for AI are augmented customer service agents, augmented sales and referral process, and finally program advisors and recommender systems.
The United States will represent 50% of world spending
Of all industries, the two industries that will make the biggest investments in AI in 2023 are banking and retail, according to IDC. Over five years, the fastest growth in AI spending will come from the media industry with a CAGR of 30.2% over this period.
“Businesses that are slow to adopt AI will be left behind, large and small. AI is best used in these businesses to augment human capabilities, automate repetitive tasks, provide personalized recommendations, and make informed decisions with speed and precision.” said Mike Glennon, a senior market research analyst with IDC’s customer insights and analytics team.
Geographically, with more than 50% of global spending on AI, the United States will be the largest market for AI-centric systems throughout the forecast according to IDC.
Next comes Europe, which will account for more than 20% of global IT spending, with one of the fastest growth rates (30% CAGR). China will be the third largest market with the slowest growth rate (CAGR of 20.6%).
Source: BFM TV
