Recently, International Data Corporation (IDC) released the latest Global Artificial Intelligence and Generative AI Spending Guide, predicting that global spending on Artificial Intelligence (AI) will double by 2028, reaching $632 billion. The main driving force behind this growth is the increasing integration of Generative AI technology (Gen AI) into more products, offering both anticipation and new investment opportunities for enterprises.
According to IDC's forecast, from 2024 to 2028, the compound annual growth rate (CAGR) of the global AI market will reach 29%. This indicates a significant increase in enterprise investment in AI technologies, applications, and related services. Particularly notable is the investment in Generative AI, with a five-year CAGR of 59.2%.
Although current spending on Generative AI is still lower than other types of AI applications, such as machine learning and natural language processing, investment in this field will grow rapidly over time. By 2028, it is expected to reach $20 billion, accounting for 32% of total spending.
In terms of spending categories, AI software will be the largest area of expenditure, expected to account for more than half of the entire market. Two-thirds of all software spending will go towards AI-supporting applications and platforms, with the remainder dedicated to the development and deployment of AI applications. In hardware, including servers and storage, spending will be the second-largest category, with IT and business services also showing significant growth, with a forecast CAGR of 24.3%.
There are also significant differences in AI application spending across various industries. IDC predicts that the financial services industry will lead in the next five years, contributing more than 20% of AI spending, followed by software and information services, and retail. Notably, the growth in AI spending in the business and personal services sector is the fastest, with an average annual growth rate of 32.8%.
AI infrastructure deployment will be the main application scenario, but with relatively low growth, expected to have a CAGR of 14.7%. The fastest-growing application scenarios include enhanced claim processing and digital commerce, with average annual growth rates of 35.8% and 33.2%, respectively. Among the 42 AI application scenarios covered by IDC, 30 will have an average annual growth rate of over 30%.
Key Points:
- 🚀 By 2028, global AI spending is expected to double, reaching $632 billion.
- 💻 The five-year CAGR of Generative AI is a remarkable 59.2%, making it a highlight for investment.
- 🏦 The financial services industry will contribute more than 20% of AI spending over the next five years.