Global AI market should reach $500 billion by 2023

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According to a new analysis, global AI industry revenue is predicted to expand 19.6% YoY to $432.8 billion in 2022. Thus, as noted by International Data Corporation, the market should reach $500 billion in 2023. (IDC).

AI solutions are currently focusing on business process problems and vary from human augmentation to process improvement to planning and forecasting. Which, therefore, provides for better decision making and outcomes.

“Multimodal AI solutions, as well as advances in language, voice, and vision technologies, are changing human productivity,” said Ritu Jyoti. He is the group vice president, Worldwide Artificial Intelligence (AI) and Automation Research at IDC.

As spending on AI hardware and services grows faster, AI software’s percentage of investment will fall marginally in 2022. Furthermore, in 2023, the trend will continue.

Over the next five years, AI services should enjoy the largest growth in spending. With a compound annual growth rate (CAGR) of 22 percent, while AI hardware will see a CAGR of 20.5 percent.

“In the era of compressed digital transformation, AI plus human inventiveness is the differentiator for firms to grow and prosper,” Jyoti remarked.

In the first half of 2021, AI apps accounted for 47 percent of investment in the AI software category. With AI system infrastructure software accounting for around 35 percent.

“AI continues to be a critical driver of IT investment, which drives spending on related services to enable scaled adoption,” Jennifer Hamel, research director, Intelligent Analytics and Automation Services, stated. “With a 0.5% increase in market share in first half of 2021, the AI hardware category witnessed the most growth. Moreover, with a 24.9 percent year-over-year growth rate, it is predicted to reach a market share of 5% in 2022.”

“Of all the investment in the various global AI market sectors, AI hardware is by far the smallest,” according to Peter Rutten, IDC research vice president, Performance Intensive Computing.

Source: https://metanews.com/global-ai-market-should-reach-500-billion-by-2023/

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