Dive Brief:
- Worldwide revenue from artificial intelligence-based systems is expected to grow from $8 billion this year to more than $47 billion in 2020, according to IDC.
- The banking and retail industries are predicted to invest the most in AI systems in 2016, followed by healthcare and discrete manufacturing. Those four industries combined will generate more than half of all worldwide cognitive/AI revenues in 2016, IDC said.
- Overall, healthcare and discrete manufacturing will deliver the greatest revenue growth over the entire period leading up to 2020, with CAGRs of more than 69% and 61%, respectively.
Dive Insight:
AI market revenues are expected to grow 487% in less than five years, as nearly every industry looks for ways to embed AI technology into all types of enterprise applications and processes. IDC is also forecasting the education and process manufacturing sectors will see huge growth in AI spending over the next four years.
Nearly half of all that money will go to software, followed by AI-related services and hardware revenues. Each of those three categories will see five-year CAGRs of more than 60%, IDC predicts.
North America will be the biggest investor in AI over the next several years, with 2016 revenues alone nearing $6.2 billion.
Gartner recently predicted AI and machine learning will be one of the top technology trends for 2017. The research firm expects the tech will be used in everything from devices to apps and services, employed by both consumers and businesses alike.
