Global Artificial Intelligence Spending to Surge by 120% and Hit $110 Billion by 2024
Recent years have witnessed a swell in the adoption of artificial intelligence solutions, revolutionizing industries, and helping businesses boost growth. The rising volume and complexity of business data are set to continue driving AI adoption in the following years, causing a surge in global AI spending.
According to data presented by Buy Shares, global artificial intelligence spending is expected to surge by 120% and hit $110bn by 2024.
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Global AI Spending Jumped 33% YoY, Despite COVID-19 Crisis
Businesses across the world use AI technology to be innovative and scalable. Using automation, deep learning, and natural language processing can improve their decision-making, efficiency, speed, and help predict trends.
In 2015, companies and organizations worldwide spent $5bn on implementing AI systems in their business, revealed the IDC 2020 Worldwide Artificial Intelligence Systems Spending Guide. In the next three years, this figure jumped five times to $25bn. Statistics show that 2019 witnessed a $37.5bn worth of investments into AI business solutions, a 650% jump in four years.
Increased investments in AI technology continued in 2020, with organizations expected to invest $50.1bn in AI systems, despite the COVID-19 crisis. The following years are set to witness remarkable growth in global AI spending, with the figure surging by almost 120% to $110bn by 2023.
Automated customer service, sales process automation, automated threat intelligence and prevention, and IT automation were the leading use cases for AI in 2020, accounting for nearly a third of total AI spending this year. However, the IDC data show that automated human resources, IT automation and pharmaceutical research and discovery are the fastest-growing use cases.
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Life Sciences and Retail Lead in Adoption of AI
The IDC data indicate the retail industry and the banking sector are expected to spend the most on AI solutions in 2020. The retail companies primarily focused their AI investments on improving customer experience via chatbots and recommendation engines. Banks are expected to keep investing in AI-driven fraud prevention and program advisors. Discrete manufacturing, process manufacturing, and healthcare round out the top five industries for AI spending this year.
The life sciences sector, including biotech, pharma and biomedical companies, has the most significant share of organizations that have adopted AI, revealed the Capgemini`s AI-Powered Enterprise survey.
Statistics show that 67% of organizations operating in this market adopted AI at scale, while another 33% launched AI pilots that are still undeployed in production. The retail industry ranked second, with 51% of companies utilizing artificial intelligence technology. The consumer products sector follows with a 44% share.
The Capgemini data show the automotive industry represents the fourth-leading sector, with 17% of companies successfully using AI in production. Another 49% of automotive companies have deployed a few use cases in production on a limited scale. The telecom industry follows, with a 14% and 57% share, respectively.