The European artificial intelligence (AI) market, including software, hardware, and services, will post a compound annual growth rate (CAGR) of 25.5% in the 2022-2026 period to reach $191 billion in 2026, according to the latest data from IDC.
► Prospects for AI growth look strong and sustained
► AI can help businesses address inflation and skills shortages
IDC expects growth in AI-centric software will be at 32.4% CAGR, with AI services rising 27.2% over the forecast period, non-AI-centric software growing 16.7%, and AI hardware 15.2%. Investment in hardware will be held back a little due to the higher price of servers needed to drive AI solutions.
The firm noted that AI services held up well during the pandemic, and IDC expects demand for AI solutions from professional services providers to continue growing. Areas like AI-enabled analytics computer vision, natural language processing, and AI-driven process automation can help businesses to deal with inflation, labour shortages, and the need to stay competitive.
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