Global Spending On AI To Reach $98bn By 2023

Firms are continually trying to incorporate AI into their business models and therefore investment into Artificial Intelligence Systems is expected o be quite substantial in the coming years, reaching USD 97.9 billion in 2023, almost two and a half times the amount spent in 2019. The use of artificial intelligence and machine learning is occurring in a wide range of sectors from ERP to management to content creation and productivity.

Majority of the investment into AI will be led by the retail and banking sectors, expected to reach approximately $5 bn in 2019 alone. The retail sector mainly benefits from artificial intelligence through the introduction of automated customer service agents and advances shopping assistants and product management systems. The banking sector implements AI into automated threat detection and prevention systems and fraud analysis. However, according to the forecast from the International Data Corporation (IDC), the highest levels of spending on AI will be from the media and the central government, each contributing about a third each to the aggregate investment.

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Geographically speaking, the United States will contribute over half of all the investment into artificial intelligence systems, led primarily by the retail and banking sectors, followed by Western Europe, where AI systems are more heavily concentrated in the retail and discrete manufacturing industries. In third place is China, integrating AI into retail, professional services and public services.

Artificial Intelligence (AI) has moved well beyond prototyping and into the phase of execution and implementation. Strategic decision makers across all industries are now grappling with the question of how to effectively proceed with their AI journey. Some have been more successful than others, as evidenced by banking, retail, manufacturing, healthcare, and professional services firms making up more than half of the AI spend. Despite the learning curve, IDC sees higher than average five-year annual compounded growth in government, media, telecommunications, and personal and consumer services
— Marianne D’Aquila, research manager, IDC Customer Insights & Analysis
Vinay Gadagoju