The financial sector was chosen because the industry that may lead artificial intelligence (AI) spending over the subsequent five years. Based on this, it was predicted that global AI spending will double from the present level.
On the nineteenth (local time), global research specialist IDC analyzed the AI-related market through 2028 in a report titled ‘Worldwide AI and Generative AI Spending Guide.’
In line with this, AI spending is predicted to grow at a mean annual rate of 29% over the subsequent five years, reaching $632 billion (roughly KRW 844 trillion) in 2028, greater than double the present amount.
Specifically, generative AI is predicted to be rapidly integrated right into a wide selection of products, recording a CAGR of a whopping 59.2%.
Generative AI has been gaining global attention over the past 18 months, nevertheless it still accounts for a small share of spending in comparison with other AI applications. Nonetheless, its rapid growth is predicted to account for 32% of all AI spending by 2028.
By industry, financial services including banking are expected to account for greater than 20% of all AI spending. The evaluation is that AI is being actively adopted in customer support, IT operations, and sales.
The industries with the fastest-growing AI spending are Business and Personal Services (CAGR 32.8%) and Transportation and Leisure (CAGR 31.7%). Moreover, 17 of the 27 industries included within the report are expected to have CAGRs exceeding 30%.
By technology, software is predicted to outpace hardware. Two-thirds of that investment is predicted to go to AI-supported applications and AI platforms, while the rest is predicted to go to AI application development and deployment and AI system infrastructure software.
By country, the US will account for the biggest share, with AI spending set to succeed in $336 billion in 2028. Western Europe will are available in second, with China and the Asia-Pacific region in third place.
“AI-driven innovations have delivered tangible business outcomes and value to organizations worldwide, they usually are constructing their AI strategies around worker experience, customer engagement, business process, and industry transformation,” said Ritu Jyoti, group vp, AI and Data Research at IDC. “As innovation in trusted AI tools and technologies grows, and human-machine interactions change into more harmonious, the barriers to large-scale AI adoption will proceed to fall.”
Reporter Im Dae-jun ydj@aitimes.com
