IDC: Companies to increase spend on AI solutions by 19.6 per cent in 2022

IDC: Companies to increase spend on AI solutions by 19.6 per cent in 2022

20 Feb 2022

Worldwide revenues for the artificial intelligence (AI) market, including software, hardware, and services, is forecast to grow 19.6 per cent year over year in 2022 to US$432.8 billion, according to the latest release of the International Data Corporation (IDC) Worldwide Semiannual Artificial Intelligence Tracker.

The market is expected to break the US$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,” IDC Worldwide Artificial Intelligence (AI) and Automation Research group vice president said Ritu Jyoti.

“Overall, AI plus human ingenuity is the differentiator for enterprises to scale and thrive in the era of compressed digital transformation.”

Among the three technology categories, AI Software will see its share of spending decline slightly in 2022 as spending for AI Hardware and Services grows more quickly. This trend will continue into 2023.

Overall, AI Services is forecast to deliver the fastest spending growth over the next five years with a compound annual growth rate (CAGR) of 22 per cent while the CAGR for AI Hardware will be 20.5 per cent.

In the AI Software category, AI Applications accounted for 47 per cent of spending in the first half of 2021, followed by AI System Infrastructure Software with around 35 per cent share.

In terms of growth, AI Platforms are expected to perform the best with a five-year CAGR of 34.6 per cent.

The slowest growing segment will be AI System Infrastructure Software with a five-year CAGR of 14.1 per cent.

Within the AI Applications segment AI ERM is forecast to grow the fastest over the next several years relative to AI CRM and the rest of AI Applications.

Among all the named software markets published in the Tracker, AI Lifecycle Software is forecast to see the fastest growth with a five-year CAGR of 38.9 per cent.

Source: The Borneo Post