Artificial intelligence spending globally to reach $434 billion in 2022

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Artificial intelligence spending globally to reach $434 billion in 2022
Artificial intelligence spending globally to reach $434 billion in 2022

Artificial intelligence 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

Including software, hardware, and services, the global revenues for the artificial intelligence (AI) market is forecast to grow 19.6 per cent (on-year) in 2022 to $432.8 billion, according to a new report.

International Data Corporation (IDC) reports the market is expected to break the $500 billion mark in 2023.

Artificial intelligence 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 revolutionizing human efficiencies”, said Ritu Jyoti, group VP, Worldwide Artificial Intelligence (AI) and Automation Research at IDC.

As spending for AI hardware and services grows more quickly, artificial intelligence software will see its share of spending decline slightly in 2022. This trend will continue into 2023.

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

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

AI applications, in the artificial intelligence software category, 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.

“AI remains a key driver of IT investment, which in turn boosts spending on related services to ensure sustainable adoption at scale”, said Jennifer Hamel, research manager, Analytics and Intelligent Automation Services.

With a jump of 0.5 per cent share, the artificial intelligence hardware category grew the most in terms of market share in the first half of 2021.

With year-over-year growth of 24.9 per cent, it is forecast to reach 5 per cent market share in 2022.

“Of all the spending in the various AI market segments, AI Hardware is by far the smallest”, said Peter Rutten, research vice president, Performance Intensive Computing at IDC.

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