FRAMINGHAM, Mass.--(BUSINESS WIRE)--Global spending on artificial intelligence (AI) is forecast to double over the next four years, growing from $50.1 billion in 2020 to more than $110 billion in 2024. According to the International Data Corporation (IDC) Worldwide Artificial Intelligence Spending Guide, spending on AI systems will accelerate over the next several years as organizations deploy artificial intelligence as part of their digital transformation efforts and to remain competitive in the digital economy. The compound annual growth rate (CAGR) for the 2019-2024 period will be 20.1%.
"Companies will adopt AI not just because they can, but because they must," said Ritu Jyoti, program vice president, Artificial Intelligence at IDC. "AI is the technology that will help businesses to be agile, innovate, and scale. The companies that become 'AI powered' will have the ability to synthesize information (using AI to convert data into information and then into knowledge), the capacity to learn (using AI to understand relationships between knowledge and apply the learning to business problems), and the capability to deliver insights at scale (using AI to support decisions and automation)."
Two of the leading drivers for AI adoption are delivering a better customer experience and helping employees to get better at their jobs. This is reflected in the leading use cases for AI, which include automated customer service agents, sales process recommendation and automation, automated threat intelligence and prevention, and IT automation. Combined, these four use cases will represent nearly a third of all AI spending this year. Some of the fastest growing use cases are automated human resources, IT automation, and pharmaceutical research and discovery.
The two industries that will spend the most on AI solutions throughout the forecast are Retail and Banking. The Retail industry will largely focus its AI investments on improving the customer experience via chatbots and recommendation engines while Banking will include spending on fraud analysis and investigation and program advisors and recommendation systems. Discrete Manufacturing, Process Manufacturing, and Healthcare will round out the top 5 industries for AI spending in 2020. The industries that will see the fastest growth in AI spending over the 2020-2024 forecast are Media, Federal/Central Government, and Professional Services.
"COVID-19 caused a slowdown in AI investments across the Transportation industry as well as the Personal and Consumer Services industry, which includes leisure and hospitality businesses. These industries will be cautious with their AI investments in 2020 as their focus will be on cost containment and revenue generation rather than innovation or digital experiences," said Andrea Minonne, senior research analyst, Customer Insights & Analysis. "On the other hand, AI has played a role in helping societies deal with large-scale disruptions caused by quarantines and lockdowns. Some European governments have partnered with AI start-ups to deploy AI solutions to monitor the outcomes of their social distancing rules and assess if the public was complying with rules. Also, hospitals across Europe are using AI to speed up COVID-19 diagnosis and testing, to provide automated remote consultations, and to optimize capacity at hospitals."
"This release of the Artificial Intelligence Spending Guide was adjusted for the impact of COVID-19," said Stacey Soohoo, research manager, Customer Insights & Analysis. "In the short term, the pandemic caused supply chain disruptions and store closures with continued impact expected to linger into 2021 and the outyears. For the most impacted industries, this has caused some delays in AI deployments. Elsewhere, enterprises have seen a silver lining in the current situation: an opportunity to become more resilient and agile in the long run. Artificial intelligence continues to be a key technology in the road to recovery for many enterprises and adopting artificial intelligence will help many to rebuild or enhance future revenue streams and operations."
Software and services will each account for a little more than one third of all AI spending this year with hardware delivering the remainder. The largest share of software spending will go to AI applications ($14.1 billion) while the largest category of services spending will be IT services ($14.5 billion). Servers ($11.2 billion) will dominate hardware spending. Software will see the fastest growth in spending over the forecast period with a five-year CAGR of 22.5%.
On a geographic basis, the United States will deliver more than half of all AI spending throughout the forecast, led by the Retail and Banking industries. Western Europe will be the second largest geographic region, led by Banking, Retail, and Discrete Manufacturing. China will be the third largest region for AI spending with State/Local Government, Banking, and Professional Services as the leading industries. The strongest spending growth over the five-year forecast will be in Japan (32.1% CAGR) and Latin America (25.1% CAGR).
The Worldwide Artificial Intelligence Spending Guide sizes spending for technologies that analyze, organize, access, and provide advisory services based on a range of unstructured information. The Spending Guide quantifies the AI opportunity by providing data for 27 use cases across 19 industries in nine regions and 32 countries. Data is also available for the related hardware, software, and services categories. This version (V2 2020) of the Spending Guide incorporates updated estimates for the impact of COVID-19 across all technology and industry markets as of the end of May 2020.
About IDC Spending Guides
IDC's Spending Guides provide a granular view of key technology markets from a regional, vertical industry, use case, buyer, and technology perspective. The spending guides are delivered via pivot table format or custom query tool, allowing the user to easily extract meaningful information about each market by viewing data trends and relationships.
Click here to learn about IDC's full suite of data products and how you can leverage them to grow your business.
About IDC
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly-owned subsidiary of International Data Group (IDG), the world's leading tech media, data and marketing services company. To learn more about IDC, please visit http://www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights: http://bit.ly/IDCBlog_Subscribe.
View original post here:
Worldwide Spending on Artificial Intelligence Is Expected to Double in Four Years, Reaching $110 Billion in 2024, According to New IDC Spending Guide...
- Sleepwalkers Podcast: What Happens When Machines Find Their Creative Muse - WIRED [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Artificial Intelligence Will Facilitate Growth of Innovative Kinds of VR and AR Platforms - AiThority [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Manufacturing Leaders' Summit: Realising the promise of Artificial Intelligence - Manufacturer.com [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- How Augmented Reality and Artificial Intelligence Are Helping Entrepreneurs Create a Better Customer Experience - Entrepreneur [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Global Director of Tech Exploration Discusses Artificial Intelligence and Machine Learning at Anheuser-Busch InBev - Seton Hall University News &... [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- 2019 Artificial Intelligence in Precision Health - Dedication to Discuss & Analyze AI Products Related to Precision Healthcare Already Available -... [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- SC Proposes Introduction Of Artificial Intelligence In Justice Delivery System - Inc42 Media [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Artificial intelligence will affect Salt Lake, Ogden more than most areas in the nation, study shows - KSL.com [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- The Best Artificial Intelligence Stocks of 2019 -- and The Top AI Stock for 2020 - The Motley Fool [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- It Pays To Break Artificial Intelligence Out Of The Lab, Study Confirms - Forbes [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Artificial intelligence in FX 'may be hype' - FX Week [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- The Surprising Way Artificial Intelligence Is Transforming Transportation - Forbes [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Need a New Topic for Thanksgiving Dinner? How to Explain Artificial Intelligence (AI) to Anyone...and Make it Fun! - Forbes [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- The Artificial Intelligence Industry and Global Challenges - Forbes [Last Updated On: November 30th, 2019] [Originally Added On: November 30th, 2019]
- Artificial Intelligence in 2020: The Architecture and the Infrastructure - Gigaom [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- AI IN BANKING: Artificial intelligence could be a near $450 billion opportunity for banks - here are the strat - Business Insider India [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- Seattle Seahawks Select Amazon In Utilizing Artificial Intelligence To Help Make Smarter Decisions On The Field - Forbes [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- Fujifilm Showcases Artificial Intelligence Initiative And Advances at RSNA 2019 - Imaging Technology News [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- The impact of artificial intelligence on humans - Bangkok Post [Last Updated On: December 1st, 2019] [Originally Added On: December 1st, 2019]
- Artificial intelligence gets to work in the automotive industry - Automotive World [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- BioSig Technologies Announces New Collaboration on Development of Artificial Intelligence Solutions in Healthcare - GlobeNewswire [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Emotion Artificial Intelligence Market Business Opportunities and Forecast from 2019-2025 | Eyesight Technologies, Affectiva - The Connect Report [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial intelligence-based fitness is promising but may not be for everyone - Livemint [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Opinion | The artificial intelligence frontier of economic theory - Livemint [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Pondering the Ethics of Artificial Intelligence in Health Care Kansas City Experts Team Up on Emerging - Flatland [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Baidu Leads the Way in Innovation with 5712 Artificial Intelligence Patent Applications - GlobeNewswire [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial Intelligence and National Security, and More from CRS - Secrecy News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial intelligence: How to measure the I in AI - TechTalks [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- 52 ideas that changed the world: 26. Artificial intelligence - The Week UK [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Longer Looks: The Psychology Of Voting; Overexcited Neurons And Artificial Intelligence; And More - Kaiser Health News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Maximize The Promise And Minimize The Perils Of Artificial Intelligence (AI) - Forbes [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Will the next Mozart or Picasso come from artificial intelligence? No, but here's what might happen instead - Ladders [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- China Will Outpace US Artificial Intelligence Capabilities, But Will It Win The Race? Not If We Care About Freedom - Forbes [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial intelligence apps, Parkinsons and me - BBC News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Artificial intelligence will affect Utah more than other states, new study says - Deseret News [Last Updated On: December 8th, 2019] [Originally Added On: December 8th, 2019]
- Aural Analytics Joins Consumer Technology Association Initiative to Set New Standards for Artificial Intelligence in Healthcare - Business Wire [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- TECH 2019: stalls related to technology, artificial intelligence a big draw - The Hindu [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- The Artificially Intelligent Investor: AI And The Future Of Stock Picking - Forbes [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Defining the Scope of an Artificial Intelligence Project - Toolbox [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Facebooks Jerome Pesenti Explains the Limitations of Artificial Intelligence Research - NullTX [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- How AI Is Transforming The Art of Stock Picking - Analytics India Magazine [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Whistle Adds Artificial Intelligence and Workflow Automation to Guest Messaging Platform for Improved Hotel and Lodging Customer Service and Increased... [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Singapore BIGO Technology Integrates Artificial Intelligence Into Communication Apps for a Holistic and Immersive Experience for Users - Business Wire [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Commuter Benefits Company, Clarity Benefit Solutions, Gives Insight into Embracing Artificial Intelligence in Human Resources - PRNewswire [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- THE AI IN TRANSPORTATION REPORT: How automakers can use artificial intelligence to cut costs, open new revenue - Business Insider India [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Chinese Association of Artificial Intelligence is hosting the 6th IEEE International Conference on the AI Pharos Pte Ltd co-organised Cloud Computing... [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- VA launches National Artificial Intelligence Institute to drive research and development - FierceHealthcare [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- SkyWatch Selected to Build Advanced Autonomous Space Systems Using Artificial Intelligence and Big Data Analytics for the Canadian Space Agency -... [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Microsoft tech expert warns of bias and sexism in artificial intelligence - The Age [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Artificial Intelligence as Security Solution and Weaponization by Hackers - CISO MAG [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Baidu Leads the Way in Innovation with 5,712 Artificial Intelligence Patent Applications - MarTech Series [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Finland seeks to teach 1% of Europeans basics on artificial intelligence - Reuters UK [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Artificial Intelligence (AI) in Supply Chain Market Worth $21.8 billion by 2027- Exclusive Report by Meticulous Research - GlobeNewswire [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- What Veterans Affairs Aims to Accomplish Through Its Artificial Intelligence Institute - Nextgov [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- The Bot Decade: How AI Took Over Our Lives in the 2010s - Popular Mechanics [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Benefits & Risks of Artificial Intelligence - Future of ... [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- What is Artificial Intelligence? How Does AI Work? | Built In [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- artificial intelligence | Definition, Examples, and ... [Last Updated On: December 10th, 2019] [Originally Added On: December 10th, 2019]
- Iktos and Almirall Announce Research Collaboration in Artificial Intelligence for New Drug Design - Business Wire [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Artificial Intelligence Job Demand Could Live Up to Hype - Dice Insights [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Artificial intelligence is writing the end of Beethoven's unfinished symphony - Euronews [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- LTTE: It's important to know of weaponized artificial intelligence - Rocky Mountain Collegian [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- 8 Artificial Intelligence, Machine Learning and Cloud Predictions To Watch in 2020 - Irish Tech News [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- It's artificial intelligence to the rescue (and response and recovery) - GreenBiz [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Joint Artificial Intelligence Center Director tells Naval War College audience to 'Dive In' on AI - What'sUpNewp [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Tip: Seven recommendations for introducing artificial intelligence to your newsroom - Journalism.co.uk [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Boschs A.I.-powered tech could prevent accidents by staring at you - Digital Trends [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Schlumberger inks deal to expand artificial intelligence in the oil field - Chron [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Artificial Intelligence Isn't an Arms Race With China, and the United States Shouldn't Treat It Like One - Foreign Policy [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Beethovens unfinished tenth symphony to be completed by artificial intelligence - Classic FM [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Accountability is the key to ethical artificial intelligence, experts say - ComputerWeekly.com [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Artificial intelligence must be used with care - The Australian Financial Review [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Squirrel AI Learning Attends the Web Summit to Talk About the Application and Breakthrough of Artificial Intelligence in the Field of Education -... [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Top Artificial Intelligence Books Released In 2019 That You Must Read - Analytics India Magazine [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- 12 Everyday Applications Of Artificial Intelligence Many People Aren't Aware Of - Forbes [Last Updated On: December 17th, 2019] [Originally Added On: December 17th, 2019]
- Artificial Intelligence might be a factor behind the Climate Change - Digital Information World [Last Updated On: December 21st, 2019] [Originally Added On: December 21st, 2019]
- Innovations in Artificial Intelligence-, Cloud-, and IoT-based Security, 2019 Research Report - ResearchAndMarkets.com - Business Wire [Last Updated On: December 21st, 2019] [Originally Added On: December 21st, 2019]
- Artificial intelligence predictions for 2020: 16 experts have their say - Verdict [Last Updated On: December 21st, 2019] [Originally Added On: December 21st, 2019]
- Tommie Experts: Ethically Educating on Artificial Intelligence at St. Thomas - University of St. Thomas Newsroom [Last Updated On: December 21st, 2019] [Originally Added On: December 21st, 2019]
- How Internet of Things and Artificial Intelligence pave the way to climate neutrality - EURACTIV [Last Updated On: December 21st, 2019] [Originally Added On: December 21st, 2019]