- Global AI investment is projected to grow 29% annually, reaching $632 billion by 2028
- Financial services, particularly banking, will lead to AI spending, contributing over 20%.
- Software, information services, and retail sectors will also drive significant AI investments, collectively accounting for around 45% of global spending.
- Business and personal services, transportation, and leisure are expected to grow fastest in AI spending, with CAGRs of 32.8% and 31.7%, respectively.
- 17 out of 27 industries analyzed are projected to achieve five-year CAGRs exceeding 30%
- Rapid AI adoption, particularly generative AI, is the key driver behind this spending surge.
- Barriers to large-scale AI adoption are expected to decrease, leading to broader implementation.
Main AI News:
According to the IDC Worldwide AI and Generative AI Spending Guide, global investment in artificial intelligence (AI), including AI-driven applications, infrastructure, and related IT and business services, is forecasted to grow at an annual rate of 29%, reaching an impressive $632 billion by 2028.
The financial services sector is expected to be the primary driver of this growth, with banking taking the lead. This industry alone will account for over 20% of all AI-related expenditures, with significant contributions from the software, information services, and retail sectors. These industries are projected to represent about 45% of global AI spending throughout the forecast period.
The fastest growth in AI investment is anticipated in the business and personal services sectors, which are expected to see a combined annual growth rate (CAGR) of 32.8%. The transportation and leisure sectors are also projected to experience significant growth, with a CAGR of 31.7%. Moreover, 17 of the 27 industries analyzed in the spending guide are expected to achieve five-year CAGRs exceeding 30%.
This rapid increase in spending is largely attributed to the swift integration of AI, particularly generative AI, into a wide range of products. The ongoing advancements in AI technology drive organizations to embed AI into their strategies, focusing on improving employee experience, enhancing customer engagement, streamlining business processes, and fostering industry-specific innovations.
As AI continues to evolve, the barriers to its large-scale adoption are expected to diminish, paving the way for more widespread implementation across various industries.
Conclusion:
The projected surge in AI spending underscores a pivotal shift across multiple industries as AI becomes integral to business strategy. Financial services, particularly banking, will be crucial in driving this investment, reflecting the sector’s reliance on AI to enhance operational efficiency, customer engagement, and innovation. The rapid growth in AI adoption across industries like business services, transportation, and leisure indicates that AI is not just a technological trend but a fundamental component of future business models. As barriers to AI adoption diminish, companies that invest early in AI capabilities will likely gain a competitive edge, positioning themselves as leaders in an increasingly AI-driven market landscape.
