Spending on cognitive and artificial intelligence to reach $12.5B

Adding further evidence that this is the year of artificial intelligence, International Data Corp has projected that worldwide revenues for cognitive and artificial intelligence systems will reach $12.5 billion in 2017, an increase of 59.3 percent over 2016. According to the new study by IDC, "Worldwide Semiannual Cognitive Artificial Intelligence Systems Spending Guide," global spending on cognitive and AI solutions will continue to see significant investment over the next several years, achieving a compound annual growth rate (CAGR) of 54.4 percent through 2020 when revenues will be more than $46 billion. "Intelligent applications based on cognitive computing, artificial intelligence, and deep learning are the next wave of technology transforming how consumers and enterprises work, learn, and play," says David Schubmehl, research director, Cognitive Systems and Content Analytics, at IDC. "These applications are being developed and implemented on cognitive/AI software platforms that offer the tools and capabilities to provide predictions, recommendations, and intelligent assistance through the use of cognitive systems, machine learning, and artificial intelligence," Schubmehl says. "Cognitive/AI systems are quickly becoming a key part of IT infrastructure and all enterprises need to understand and plan for the adoption and use of these technologies in their organizations." From a technology perspective, IDC says the largest area of spending in 2017 (approximately $4.5 billion) will be on cognitive applications, which includes "cognitively-enabled process and industry applications that automatically learn, discover, and make recommendations or predictions," Schubmehl says.