Global spending on artificial intelligence (AI), including infrastructure, AI-enabled applications, and other business and IT services, is projected to reach $632 billion by 2028, with a compound annual growth rate (CAGR) of 29% from 2024-2028, according to an IDC forecast.
Generative AI (GenAI) is expected to surpass the entire AI market, reaching $202 billion by the end of the forecast period, with a five-year CAGR of 59.2%.
The United States will lead AI investment with $336 billion in 2028, followed by Western Europe, China, and Asia/Pacific regions.
AI software will dominate the AI market, accounting for over half of total spending, while AI hardware, including servers, storage, and Infrastructure as a Service (IaaS), will be the next significant area of spending.
IT and business services will grow at a rate of 24.3% CAGR, faster than hardware, while AI software is projected to grow at a 33.9% CAGR over five years.
The financial sector is expected to be the largest spender on AI solutions, with business and personal services experiencing significant growth in AI investment. Financial services will be the leading industry for AI spending, followed by software and information services and retail.
AI strategies focus on employee experience, customer engagement, business process, and industry innovations. AI Infrastructure Provisioning is the leading use case for AI solutions, with other use cases expected to catch up.
AI adoption barriers will reduce due to innovations in tools, technology, and human-machine interaction.
Sources: EPT, Indica News, Jagran English, Eagle Tribune, Lokmat Times
This article was written in collaboration with Generative AI news company Alchemiq.
