According to IDC beancounters, the European AI market is set to carry on an upward trajectory by 2026.
The IDC Worldwide Semi-annual Artificial Intelligence Tracker reports that market areas, such as AI services, non-AI-centric software and AI hardware, will see moderate growth.
IDC expects AI’s total addressable market to reach $191 billion by 2026.
Senior research manager at IDC, Martin Nuska, commented on the results saying: “The next five years will represent a crucial period in the commercial adoption of AI software, as many companies and governments are now investing more to make their processes more agile, efficient, and resilient.”
He spotlighted that innovative AI models will have the potential to drive business value, which include deep learning-based language models, generative adversarial networks, and various models for digital twins.
This is because AI infrastructure usually comes at a price premium. However, IDC claims that the market for AI servers/storage in Europe will show a slow but steady growth pattern during the recast period.
The IDC report shows demand for AI solution from professional services providers to continue growing despite the economic challenges which IDC claims will be due to the market’s resilience shown during the pandemic. Areas such as AI-enabled analytics computer vision, natural language processing, and AI-driven process automation can help businesses to deal with price inflation, labour shortages, and the need to stay competitive.
“Europe faces a potential recession, while the labour market is marked by contradictory forces – a shortage of skilled workers in certain tech areas on one hand, while on the other even the biggest tech companies like Amazon, Google, and Microsoft are laying off tens of thousands of workers,” continued Nuska.
“We expect the AI market to continue performing strongly nevertheless, because of the technology’s potential for long-term cost optimisation and as a possible solution to the skills gap.”
