AI Spending to Cross Beyond $110 Billion by 2024

AI Spending to Cross Beyond _110 Billion by 2024

The global spending on Artificial Intelligence (AI) is projected to double in the next four years, rising to more than $110 billion in 2024 – claims a recent IDC study.

The use of advanced technology is booming across industries – primarily due to the need of the hour. The worldwide AI spending is rapidly growing and expected to increase from $50.1 billion in 2020 to over $110 billion in 2024. This spending on AI solutions will accelerate in the coming years, as per the International Data Corporation.

Lately, more businesses are deploying artificial intelligence and innovative technologies as a part of their digital transformation plans. This is undoubtedly helping many organizations to stay competitive in the digital economy. In this essence, more companies will adopt AI. The study indicated that the compound annual growth rate for the 2019-2024 period would be about 20.1%.

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As mentioned by Ritu Jyoti, Program Vice President, Artificial Intelligence at IDC in the company blog post – “The companies that become ‘AI powered’ will have the ability to synthesize information (using AI to convert data into information and then into knowledge), the capacity to learn (using AI to understand relationships between knowledge and apply the learning to business problems), and the capability to deliver insights at scale (using AI to support decisions and automation).”

AI is supporting businesses to be more agile, scale, and innovate amid this unprecedented time. The leading drivers for prompt AI adoption are delivering enhanced customer experience and assisting users/employees to function better at their roles. This is even revealed in the many AI use cases, including sales process recommendation, IT automation, automated customer service agents, and threat intelligence.

As per the study, two sectors that are most likely to spend the most on AI for the forecasted period are retail and banking. Mostly, the retail organizations will emphasize AI investments to improve customer experience operations via recommendation engines and chatbots. The banking sector will be focussing on fraud analysis, investigation, and recommendation systems.

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Over the 2020-2024 periods, the industries that are forecasted to see the fastest growth over AI spending are – media, central/ federal government, and professional service organizations. Investments across the transportation and consumer services sectors are most likely to see a slowdown because of COVID-19.

Furthermore, AI has played a significant role in facilitating different agencies dealing with large-scale disruptions induced by lockdowns and quarantines. For instance, some European governments have united with AI start-ups to set up advanced tech solutions. This helped them in monitoring the outcomes of social distancing norms if people were complying with regulations. Even hospitals are now using AI to boost diagnosis and provide automated consultations remotely.

Clearly, many enterprises see a silver lining in this situation – the opportunity to be more agile and resilient in the long run. Thus, adopting AI will certainly help businesses to rebuild and enhance their future revenue operations.