AI spending to surge 32% to $95 billion by 2024

Global spending on artificial intelligence (AI) technology is expected to grow 32 percent to $95 billion by 2024 from $25 billion in 2019.
Energy to invest in AIMore than 72 percent of global enterprises will be making investment in AI technology, a research report on AI from Everest Group indicated.

Challenges include skills gap, the lack of proven return on investment, concerns around privacy and regulations, and the black-box nature of the technology act as journey impediments. Among all, talent continues to remain the key challenge for firms.

Everest Group recommends that enterprises invest in democratizing AI, ensuring that the technology is accessible to all within the organization to overcome the expanding talent gap.

Investments in data and AI literacy, self-service no-code and low-code tools, and automation-enabled machine learning will be key to success. This democratization effort also will require contextualization, change management and governance to ensure responsible and successful use of AI as access expands within the enterprise.

Banking, Financial Services and Insurance (BFSI); retail and consumer packaged goods (CPG); and healthcare and life sciences lead AI adoption, followed by manufacturing.

North American enterprises contribute nearly 51 percent of the revenue for AI services, followed by European firms. Asia Pacific (APAC) enterprise spend on AI has been increasing in recent years, led largely by Chinese and Japanese firms, owing to significant government push for adoption.

Enterprise AI spend is highest amongst customer service as well as sales and marketing front-office functions, followed by human resources and finance and accounting in the back office.