Global artificial intelligence spending to touch $434 bn

Artificial intelligence can transform the productivity and GDP potential of the global economy and the global revenues for the artificial intelligence market, including software, hardware, and services, is forecast to grow 19.6 per cent (on-year) in 2022 to $432.8 billion as per IDC and the market is expected to break the $500 billion mark in 2023. AI has emerged as the next major wave of innovation. AI solutions are currently focused on business process problems and range from human augmentation to process improvement to planning and forecasting, empowering superior decisioning and outcomes. Advancements in language, voice and vision technologies, and multi-modal AI solutions are revolutionizing human efficiencies.

AI solutions are currently focused on business process problems and range from human augmentation to process improvement to planning and forecasting, empowering superior decisioning and outcomes. Advancements in language, voice and vision technologies, and multi-modal AI solutions are revolutionizing human efficiencies. The overall AI market includes a wide array of applications such as natural language processing, robotic process automation, and machine learning. Secondly, AI services is forecast to deliver the fastest spending growth over the next five years with a CAGR of 22 per cent while the CAGR for AI Hardware will be 20.5 per cent.

A survey reveals, AI could contribute up to $15.7 trillion1 to the global economy in 2030, more than the current output of China and India combined. Of this, $6.6 trillion is likely to come from increased productivity and $9.1 trillion is likely to come from consumption-side effects. Whereas, AI remains a key driver of IT investment, which in turn boosts spending on related services to ensure sustainable adoption at scale.

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Overall, AI plus human ingenuity is the differentiator for enterprises to scale and thrive in the era of compressed digital transformation. The AI hardware category grew the most in terms of market share in the first half of 2021 with a jump of 0.5 per cent share. As per the forecast of IDC, it will reach 5 per cent market share in 2022 with year-over-year growth of 24.9 per cent. Of all the spending in various AI market segments, AI Hardware is by far the smallest. AI is set to be the key source of transformation, disruption and competitive advantage in today’s fast changing economy.