The analyst company IDC has predicted that spending on artificial intelligence, including software, hardware, and services for AI-centric systems, will increase by 26.9% in 2023 compared to 2022, hitting $154 billion. The compound annual growth rate (CAGR) over 2022-2026 will be 27% thanks to the inclusion of AI services in a wide range of products. By 2026, spending should exceed $300 billion.
The company said it has highlighted 36 AI use cases and all of them, save one, will see CAGRs of more than 24% in the forecast period. The three cases that will lead the pack when it comes to spending will be Augmented Customer Service Agents, Sales Process Recommendation and Augmentation, and Program Advisors and Recommendation Systems. Combined, these cases will make up for more than a quarter of AI spending this year, IDC says.
Commenting on the data, Mike Glennon, senior market research analyst with IDC’s Customer Insights & Analysis team, said:
“Companies that are slow to adopt AI will be left behind – large and small. AI is best used in these companies to augment human abilities, automate repetitive tasks, provide personalized recommendations, and make data-driven decisions with speed and accuracy. Suppliers of AI technologies need to know which are the largest and fastest growing opportunities, but without data they become just another opinion. IDC's AI Spending Guide provides the foundation for marketing strategy through its comprehensive coverage of AI opportunities and gives a robust basis for a market focus that ties with companies' capabilities.”
Geographically, IDC believes the United States will account for more than half of all AI spending throughout the forecast. Western Europe is expected to make up over 20% and China is expected in third, though, no percentage was given about how much of the worldwide spending it will make up.