AI faces 6 trillion test to justify data centers, Bain says

Annual spending on artificial intelligence infrastructure may reach as much as $1.5 trillion by 2031, consulting firm Bain & Co. said in its annual global technology report. The global artificial intelligence industry needs to earn $6 trillion in annual revenue by 2031 to justify the capital being deployed to build data centers around the world, Bain & Co. said. Existing consumer and enterprise AI services may generate as much as $1.8 trillion of that sum, leaving $4.2 trillion in new revenue that needs to be created, the consulting firm said Tuesday in its annual global technology report. The shortfall likely will come from nascent segments ranging from autonomous machines to robotics, as well as emerging fields such as drug discovery, mental health and energy generation, it said. "What the industry needs is a wave of innovation that will dwarf what mobile and cloud unlocked," said David Crawford, the report's lead author and chair of Bain's Global Technology, Media, and Telecommunications practice.