Recently, International Data Corporation (IDC) released the latest "Global Artificial Intelligence and Generative AI Spending Guide." According to the report, it is anticipated that by 2028, global spending on artificial intelligence (AI) will exceed $632 billion, showing a very rapid growth rate. Specifically, the compound annual growth rate during this period will reach 29.0%. Ritu Jyoti, Vice President of Research at IDC, stated that the widespread application of AI is driving enterprises to transform in various aspects such as employee experience, customer interaction, and business processes.
Although generative AI (GenAI) has attracted widespread attention over the past year and a half, its spending remains lower than other AI applications such as machine learning, deep learning, and natural language processing. However, the investment growth rate of GenAI is impressive, with an expected annual growth rate of 59.2% over the next five years. IDC predicts that by 2028, GenAI spending will reach $202 billion, accounting for 32% of total AI spending.
In different technology categories, software spending will dominate, expected to account for more than half of the overall AI market for most of the time. Among these, AI applications and AI platforms will make up two-thirds of software spending, with the remaining portion going towards AI application development, deployment, and AI system infrastructure software. In terms of hardware, spending on servers, storage, and Infrastructure as a Service (IaaS) will also be substantial.
In terms of industries, the financial services sector will be the biggest beneficiary of AI solution spending, expected to account for over 20% of the total. The main spending industries following this will include software and services as well as retail. IDC also noted that the AI spending growth rate in industries such as business and personal services, as well as transportation and leisure, will be relatively fast.
In terms of usage scenarios, AI infrastructure provision will be the primary investment area for most businesses, although it is expected to grow at a slower pace, with an annual growth rate of 14.7%. However, other examples such as enhanced fraud analysis, customer service, and assistant services will show more significant growth momentum.
Karen Massey, Research Manager at IDC, stated that by 2028, the United States is expected to spend $336 billion, becoming the largest market for global AI investment. Western Europe, China, and the Asia-Pacific region (excluding Japan and China) will follow closely. It is evident that the investment potential in the AI field is enormous, and the future development prospects are promising.
Key Points:
🌍 Global AI spending is expected to reach $632 billion by 2028, with an annual growth rate of 29.0%.
💰 The financial services industry will account for over 20% of total AI spending, becoming the largest spending industry.
🚀 Generative AI spending is growing the fastest, with an expected annual growth rate of 59.2% in the future.