Global AI spending to increase by $50b by 2024, new research says

Global AI spending to increase by $50b by 2024, new research says

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The Artificial Intelligence sector is growing at an alarming rate and will keep growing in the same way for the next few years, according to research firm IDC. The all-encompassing nature of AI will prove to be beneficial to all industries and sectors globally.

The current global spending on AI is approximately $50b, and this number is all set to rise by roughly $50b in the next four years. The global AI spending in 2024 is expected to be more than $110b. This sharp rise would be attribute to two things – rise in global tech developments and digital competition. 

IDC Research: Enterprises will have to adopt AI

IDC executive Ritu Jyoti affirmed that to stay in business, enterprises would have to adopt AI. She stressed on ‘competition in the free market’ being a stepping stone for the increase in AI spending. 

“In 2019, IDC saw that organizations’ AI adoption is on the rise, and there is steady expansion in the use of AI applications within the spectrum of business processes across the enterprises. Advancements in machine learning, conversational AI, and computer vision AI are empowering AI-centric and AI non centric applications that are architecting business transformation”, she said in her published findings

IDC’s market research about Global spending on AI covers a broad spectrum of 32 countries and 19 industries. The company asserted that development in AI takes place to provide better customer experience and help employees do their jobs better.

Expected to spend significantly in these four years (2020-2024) are retail and banking industries. The banking industry could use AI for fraud analysis and investigation, project advisory and recommendation system. Whereas, the retail industry could use it for improving customer experience through chatbots and recommendation engines, and other personal services.

Another prediction by IDC in December 2019 stated that By 2024, AI would be a core component of enterprise workloads. Approximately, for 75% of all enterprises, 20% of their workloads will be AI-based or AI-enabled.

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