According to IDC’s Global Artificial Intelligence Spending Guide, global artificial intelligence (AI)-related spending will double in the next four years, from 50.1 billion U.S. dollars in 2020 to more than 110 billion U.S. dollars in 2024. As organizations use artificial intelligence as their digitalization An integral part of the transformation effort, and the hope to remain competitive in the digital economy, will promote the accelerated growth of artificial intelligence systems in the next few years, with a compound annual growth rate (CAGR) of 20.1% from 2019 to 2024.
Ritu Jyoti, IDC’s vice president of artificial intelligence projects, said: “Enterprises adopt AI not only because they can do it, but also because they have to do it. Artificial intelligence technology can help companies become agile, innovative, and grow at scale. Those’ AI-driven companies will have comprehensive information (using AI to convert data into information and then into knowledge), learning (using AI to understand the relationship between knowledge and applying it to solve business problems), and provide large-scale insights (using AI to support decision-making and automation).”
The two driving forces that promote the popularization of artificial intelligence are to provide a better customer experience and help employees do their jobs better. This is reflected in the main use cases of AI, including customer service agent automation, sales process recommendation and automation, and threat intelligence Together with prevention automation and IT automation, these four application scenarios will account for nearly one-third of all AI spending this year. In addition, the fastest-growing use cases are HR automation, IT automation, drug research and discovery.
During the entire forecast period, the retail and banking industries will spend the most on AI solutions. The retail industry will mainly use AI for improving customer experience through chatbots and recommendation engines, while the banking industry will mainly use it for fraud analysis and investigation, project consultants, and recommendation systems. In addition, the discrete manufacturing, process manufacturing, and medical industries will no longer be the top 5 industries in AI spending this year. During the 2020-2024 forecast period, the industries with the fastest growth in AI spending are media, federal/central government, and professional services.
IDC Customer Insights and Analysis Senior Research Analyst Andrea Minonne said: “The COVID-19 has caused a slowdown in AI investment in individual consumer service industries such as transportation, leisure, and hospitality. These industries will be cautious about investing in AI this year because This year their focus will be on cost control and revenue generation, rather than innovation or digital experience. On the other hand, AI has played a role in helping society cope with the widespread stagnation caused by the epidemic isolation and lockdown. The governments of some European countries have already begun. Cooperate with AI startups to deploy AI solutions to monitor social isolation and assess whether the public is abiding by the rule. In addition, hospitals across Europe are also using AI to speed up COVID-19 diagnosis and testing, and provide automated remote Consulting and optimizing the hospital’s operational capabilities.”
IDC Customer Insights and Analysis Research Manager Stacey Soohoo said: “The artificial intelligence spending guidelines announced this time have been adjusted according to the impact of COVID-19. In the short term, the epidemic has caused supply chain disruptions and store closures. The continued impact is expected to be Continue until 2021 and beyond. For the most affected industries, they will postpone the deployment of AI. Companies in other industries see a glimmer of hope in the current situation: this is a way to make companies more resilient in the long run , A good opportunity for more agility. For many companies, AI is still a key technology on the road to recovery. The use of AI will help many companies rebuild, or increase future revenue sources and enhance operational capabilities.”
This year, software and services will each account for more than one-third of total AI spending, with the rest being hardware. In terms of software spending, AI applications (US$14.1 billion) accounted for the largest proportion, and IT services (US$14.5 billion) accounted for the largest portion of service spending. In terms of hardware, servers ($11.2 billion) will dominate. During the forecast period, software spending will grow the fastest, with a five-year compound growth rate of 22.5%.
From a regional perspective, the United States will account for more than half of AI spending during the entire forecast period, led by retail and banking. Followed by Western Europe, dominated by banking, retail and discrete manufacturing. China ranked third, mainly dominated by national/local governments, banking, and professional services. During the five-year forecast period, the regions with the strongest spending growth are Japan (compound annual growth rate of 32.1%) and Latin America (compound annual growth rate of 25.1%).
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