In 2019, software will be the biggest field of AI systems spending with almost US$ 13.5 billion going toward AI software platforms and AI applications
Global spending on artificial intelligence (AI) systems is estimated to reach US$ 35.8 billion in 2019, a growth of 44 per cent as compared to the amount spent in 2018, according to a latest report by International Data Corporation (IDC).
Due to heavy investments by industries in projects that utilise AI software capabilities, the spending on AI systems will increased two-fold to US$ 79.2 billion in 2022, recording a compound annual growth rate (CAGR) of 38 per cent over the 2018-2022 forecast period, the report predicts.
Maximum spending in retail
The major spending on AI systems globally will be led by retail sector, where firms will invest US$ 5.9 billion in 2019 on solutions like automated customer service agents, product recommendations and expert shopping advisors.
The second largest industry will be banking with US$ 5.6 billion spending on AI-enabled solutions such as fraud analysis & investigation systems and automated threat intelligence and prevention systems.
The industries that will witness the fastest growth are federal/central government with estimated CAGR of 44.3 per cent, personal and consumer services with 43.3 per cent CAGR, and education 42.9 per cent CAGR.
Commenting on the findings, Marianne Daquila, Research Manager, Customer Insights & Analysis at IDC, said, “Significant worldwide AI systems spend can now be seen within every industry as AI initiatives continue to optimise operations, transform the customer experience, and create new products and services.”
Advancement of AI-related technologies
Daquila further said, “This is evidenced by use cases, such as intelligent process automation, expert shopping advisors & product recommendations, and pharmaceutical research and discovery exceeding the average five-year compound annual growth of 38 per cent. The continued advancement of AI-related technologies will drive double-digit year-over-year spend into the next decade.”
In 2019, software will be the biggest field of AI systems spending with almost US$ 13.5 billion going toward AI software platforms and AI applications. Dominated by servers, hardware spending will be US$ 12.7 billion this year as organisations continue to develop the infrastructure necessary to support AI systems, the report says.