Spending on artificial intelligence (AI) systems will reach $97.9 billion in 2023 against $37.5 billion that will be spent in 2019. The compound annual growth rate (CAGR) for the 2018-2023 forecast period will be 28.4 percent.
Investment in artificial intelligence and machine learning (ML) is happening in a range of solutions and applications from ERP and manufacturing software to content management, collaboration, and user productivity, David Schubmehl, research director, Cognitive/Artificial Intelligence Systems at IDC.
Retail will invest more than $5 billion in AI systems in 2019. The retail industry will keep nearly half of their AI spending toward automated customer service agents and expert shopping advisors & product recommendation systems.
Banking will invest more than $5 billion in AI systems in 2019. The banking industry will focus its investments on automated threat intelligence and prevention systems and fraud analysis and investigation.
Siscrete manufacturing, process manufacturing, healthcare, and professional services are the other industries that will make significant investments in AI systems. The fastest spending growth will come from the media industry and federal/central governments with five-year CAGRs of 33.7 percent and 33.6 percent respectively.
Strategic decision makers across all industries are now grappling with the question of how to effectively proceed with their AI journey. Banking, retail, manufacturing, healthcare, and professional services firms are more successful in AI investment, Marianne D’Aquila, research manager, IDC Customer Insights & Analysis, said.
Three AI use cases – automated customer service agents, automated threat intelligence and prevention systems, and sales process recommendation and automation – will deliver 25 percent of all spending in 2019.
United States will deliver more than 50 percent of all AI spending throughout the forecast, led by the retail and banking industries.
Western Europe will be the second largest geographic region, led by banking and discrete manufacturing.
China will be the third largest region for AI spending with retail, state/local government, and professional services vying for the top position.