Global sales of artificial intelligence (AI) solutions are forecast to grow 19.6% year-over-year in 2022 to $432.8 billion, according to IDC. The market is expected to break the $500 billion mark in 2023.
►Hardware and services to see fastest growth
►‘AI plus human ingenuity’ can be differentiator for enterprises
Ritu Jyoti, group vice president, Worldwide Artificial Intelligence (AI) and Automation Research at IDC, said: ‘AI has emerged as the next major wave of innovation. Advancements in language, voice and vision technologies, and multi-modal AI solutions are revolutionising human efficiencies. Overall, AI plus human ingenuity is the differentiator for enterprises to scale and thrive in the era of compressed digital transformation.’
Among the three technology categories that IDC uses, AI software will see its share of spending decline slightly in 2022, while spending on hardware and services will grow faster. Overall, AI services are forecast to deliver the fastest growth over the next five years with a CAGR of 22% while hardware will grow at a rate of 20.5%.
In the AI software category, AI applications accounted for 47% of spending in the first half of 2021, followed by AI system infrastructure software with 35%. In growth terms, AI platforms are expected to perform the best with a five-year CAGR of 34.6%. Within the AI applications segment, AI ERM is forecast to grow the fastest
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