According to International Data Corporation (IDC), global spending on artificial intelligence (AI), including software, hardware, and AI-centric systems and services, will reach $154 billion in 2023, an expected growth of 26.9% compared to 2022.
IDC also predicts that the compound annual growth rate (CAGR) from 2022-2026 will reach 27% due to the widespread inclusion of AI services in various products. By 2026, spending should exceed $300 billion.
Regionally, IDC predicts that the United States will account for more than half of all AI spending during the entire forecast period. Western Europe is expected to account for over 20%, and China is expected to rank third, but no specific percentage was given.
IDC also highlighted 36 AI use cases, and all but one of these use cases are expected to have a CAGR of more than 24% during the forecast period. The top three use cases in terms of spending are enhanced customer service agents, sales process recommendation and automation, and expert shopping advisors and product recommendations, which together will account for over a quarter of AI spending this year, according to IDC.
IDC recommends that AI technology vendors need to know what the biggest and fastest-growing opportunities are, but they are just another point of view if they don’t have the data.