TL;DR:
- Omdia report shows a majority of enterprises allocating significant funds for AI in 2023 with projections for further budget increases in 2024
- 42% of surveyed companies have AI budgets of $1 million or more, 23% have budgets of $2 million or more, and 9% have budgets of $5 million or more
- Spending trend is consistent across companies regardless of revenue, region, or industry, with mature AI use cases leading to higher spending in certain verticals
- IDC report predicts global spending on AI, including hardware, software, and services, to reach $154 billion in 2023, a 26.9% increase from the previous year
- Rapid advances in AI, such as OpenAI’s ChatGPT, are complicating government efforts to regulate the technology.
Main AI News:
According to the recent report by Omdia, the majority of enterprises are allocating significant funds towards artificial intelligence (AI) in 2023, with a projection of further budget increases in 2024. Omdia conducted a survey among 369 companies, finding that 42% of them have AI budgets of $1 million or more, 23% have budgets of $2 million or more, and 9% have budgets of $5 million or more. The spending trend is consistent across companies regardless of revenue, region, or industry, with mature AI use cases leading to higher spending in certain verticals.
Mark Beccue, Principal Analyst at Omdia, stated, “The spending trend is consistent regardless of company revenue, region, or vertical. There are logical differences—enterprises with smaller revenue spend less than those with larger revenue, and verticals with more mature AI use cases spend more than others.”
According to a recent IDC report, global spending on AI, including software, hardware, and services for AI-centric systems, will reach $154 billion in 2023, reflecting a 26.9% increase from the previous year. The rapid advances in AI, such as OpenAI’s ChatGPT, are reportedly complicating governments’ efforts to regulate the technology, as stated by a recent Reuters report.
Conlcusion:
The report by Omdia highlights the growing trend of enterprises investing heavily in artificial intelligence (AI) in 2023, with a projection of further budget increases in 2024. The survey conducted by Omdia found that a significant number of companies have budgets of $1 million or more for AI, with the spending trend consistent across companies regardless of revenue, region, or industry.
The report also highlights the mature AI use cases in some verticals leading to higher spending. The IDC report predicts that global spending on AI, including hardware, software, and services, will reach $154 billion in 2023, a 26.9% increase from the previous year. The rapid advances in AI are also reportedly causing challenges for governments in regulating technology.
