Some enterprises plan AI budget of $5 mn or more: Omdia

The majority of enterprises are heavily investing in artificial intelligence (AI), according to a recent report by Omdia.
artificial-intelligenceThe report reveals that a significant amount of funds are being allocated to AI in 2023, with a projected increase in budgets for 2024.

The survey conducted by Omdia found that 42 percent of the 369 surveyed companies have budgets of $1 million or more for AI in 2023, while 23 percent have budgets of $2 million or more, and 9 percent have budgets of $5 million or more.

Mark Beccue, Principal Analyst at Omdia, said: “The spending trend is consistent regardless of company revenue, region, or vertical. There are logical differences—enterprises with smaller revenue spend less than those with larger revenue, and verticals with more mature AI use cases spend more than others.”

The report suggests that the trend of increasing AI budgets is consistent across companies of varying revenue, regions, and industries, with mature AI use cases in some verticals leading to higher spending. It’s worth noting that the survey was conducted in February 2023, prior to the rise of interest in Generative AI, and budgets for 2023 were likely set before this movement gained momentum.

A recent IDC report said that global spending on artificial intelligence (AI), including software, hardware, and services for AI-centric systems, will reach $154 billion in 2023, an increase of 26.9 percent over the amount spent in 2022.

A recent Reuters report said the rapid advances in artificial intelligence (AI) such as Microsoft-backed OpenAI’s ChatGPT are complicating governments’ efforts to agree on laws governing the use of the technology.

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