Beancounters at IDC have added up some numbers and divided them by their shoe size and reached the conclusion that the AI market – which includes AI software, services and hardware will break the $500 billion mark by 2023.
For partners investing in artificial intelligence, it’s services that IDC are forecasting to deliver the fastest spending growth over the next five years with a compound annual growth rate (CAGR) of 22 percent.
Meanwhile, the CAGR for AI hardware will be 20.5 percent, while AI software will see its share of spending decline slightly in 2022 as spending for hardware and services grows more quickly: a trend that IDC says will continue into 2023.
IDC group vice president, worldwide AI and automation research Ritu Jyoti said that AI 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 decisions and outcomes. Advancements in language, voice and vision technologies, and multi-modal AI solutions are revolutionising human efficiencies. Overall, AI plus human ingenuity is the differentiator for enterprises to scale and thrive in the era of compressed digital transformation.”
AI IT services enjoyed 20.4 percent year-over-year growth in the first half of 2021 with worldwide spending reaching $18.4 billion, and the researcher expects overall AI services spending to reach $52.6 billion by 2025.
