Spending on AI will grow 27% to $154 bn in 2023: IDC

Global spending on artificial intelligence (AI) will increase 26.9 percent to $154 billion in 2023, according to the latest IDC report.
Clearview AI businessSpending on AI-centric systems is expected to surpass $300 billion in 2026.

“AI will augment human abilities, automate repetitive tasks, provide personalized recommendations, and make data-driven decisions with speed and accuracy,” said Mike Glennon, senior market research analyst with IDC’s Customer Insights & Analysis team.

One indicator of how broad spending on AI-centric systems will be over the next five years is that only one of the 36 AI use cases identified by IDC will have a CAGR of less than 24 percent over the forecast period.

Augmented Customer Service Agents, Sales Process Recommendation and Augmentation, and Program Advisors and Recommendation Systems are top three of the leading AI use cases in terms of spending focus on sales and customer service functions.

These three use cases will see investment from nearly every industry and combined will account for more than a quarter of all AI spending in 2023.

IT Optimization, Augmented Threat Intelligence and Prevention Systems, and Fraud Analysis and Investigation are the other use cases that will see the largest spending this year support a more diverse set of tasks.

Banking and Retail are the two industries that will deliver the largest AI investments in 2023 and throughout the forecast.

Professional Services, Discrete and Process Manufacturing are the next largest industry for AI spending.

Banking, Retail, Professional Services, Discrete and Process Manufacturing industries will account for more than half of all spending on AI-centric systems this year.

The fastest growth in AI spending will come from the Media industry with a five-year CAGR of 30.2 percent. However, much like use case spending, only two of the industries in the Spending Guide will have CAGRs of less than 25 percent.

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