We know, as you do, that artificial intelligence is driving a lot of spending at IT organizations and is probably the fundamental driver of spending by the hyperscalers and cloud builders that have, thus far, benefitted most from the machine learning revolution. But just how much money are companies sinking into AI, and how will that grow over time? We have not seen a lot of good data on this, and the market researchers at IDC, as usual, have been the most vocal about how they dice and slice the AI market in their public statements, which dribble out some insight here and there to keep their name out there and to drive deeper engagements with AI startups, their investors, IT suppliers who are chasing this market, and large enterprises that are on the forefront of commercializing AI in their application stacks. What sent us down this AI spending rathole was some numbers that IDC released on March 7, which talks about worldwide spending on AI-Centric systems, including hardware, software, and services. AI-centric means that without the AI component, an application will not function.

Preparing for the adoption of new technologies is challenging for many large enterprise organisations. That's why savvy CIOs and CTOs seek information and guidance from vendors that can assist them on the journey to achieve digital business transformation. Meanwhile, investment in artificial intelligence (AI) systems and services will continue on a high-growth trajectory. According to the latest worldwide market study by International Data Corporation (IDC), spending on AI systems will reach $97.9 billion in 2023 - that's more than two and a half times the $37.5 billion that will be spent in 2019. The compound annual growth rate (CAGR) for AI in the 2018-2023 forecast period will be 28.4 percent.

The next four years could see companies double their spend on artificial intelligence (AI) as real-world applications of the technology gather pace. Automated customer service agents, threat intelligence and prevention systems, and sales process recommendation and automation will dominate spend. That's based on a report by the International Data Corporation (IDC) that states that spend on AI solutions will reach US$97.7 billion in 2023, more than double that of the US$37.5 billion estimated in 2019. The figure would represent a compound annual growth rate of 28.4 percent over the period. David Schubmehl, the research director at IDC in charge of Cognitive/Artificial Intelligence systems said; "The use of artificial intelligence and machine learning (ML) is occurring in a wide range of solutions and applications from ERP and manufacturing software to content management, collaboration, and user productivity. "Artificial intelligence and machine learning are top of mind for most organizations today, and IDC expects that AI will be the disrupting influence changing entire industries over the next decade." Banking and retail sectors will lead the shift to AI. According to the report, each of these industries will invest more than US$5 billion in 2019. In the retail sector, nearly half of the spending on technology will go towards automated customer service agents, expert shopping advisors, and product recommendation systems. On the other hand, the banking industry is set to ramp up spend on automated threat intelligence and prevention system, as well as fraud analysis and investigation system. Significant investments would also be made in discrete manufacturing, process manufacturing, healthcare, and professional services. The fastest industries to grow in terms of spending would be the media industry and governments with a five-year CAGR of 33.7 percent and 33.6 percent respectively. According to Marianne D'Aquila, Research Manager at IDC Customer Insight & Analysis, said: "Strategic decision-makers across all industries are now grappling with the question of how to effectively proceed with their AI journey.

Spending on artificial intelligence (AI) hardware and software is predicted to expand two-and-a-half times from current expenditure of $37.5 billion to $97.9 billion, according to a new report by International Data Corporation (IDC). That is a compound annual growth rate (CAGR) of 28.4 percent during the five-year 2018-2023 period of the report's forecast. Developers will see increased spending for AI software as it is predicted to overtake hardware purchases by 2023, according to the IDC Worldwide Artificial Intelligence Systems Spending Guide. In 2019 hardware spending for AI infrastructure is outpacing software purchases, IDC reports. But by 2023, it predicts that spending for AI software and AI software platforms will see 36.7 percent CAGR.

Worldwide spending on cognitive and artificial intelligence systems is expected to triple over the next three years, as organizations invest in projects that use cognitive/AI software capabilities, according to a recent report from International Data Corporation. Spending on cognitive and AI systems will reach $77.6 billion in 2022. That's up more than three times compared with the $24.0 billion spending forecast for 2018. The compound annual growth rate (CAGR) for the 2017 to 2022 period will be 37 percent, the firm said. Organizations using these technologies to drive innovation are seeing benefits in terms of revenue, profit and overall leadership in their respective industries and segments, said David Schubmehl, research director, cognitive/artificial intelligence systems at IDC. Software will be both the largest and fastest growing technology category throughout the forecast period, accounting for about 40 percent of all cognitive/AI spending and with a five-year CAGR of 43 percent.

However, the field is often among the first to adapt new technology, as small increases in efficiency can be the difference between a profitable venture and one that's economically unsustainable. Technology is having a major impact on manufacturing, and Deloitte, in conjunction with the Council on Competitiveness and Singularity University, recently released their Exponential Technologies in Manufacturing study to outline just how quickly change is expected. The report outlines four industrial revolutions, the most recent of which started in 2010. While electronic automation has transformed manufacturing since the 1970s, smart automation is playing a pivotal role in technologies coming online today. By tying automation equipment more closely to artificial intelligence, Internet of Things sensors, and other contemporary technology, smart automation has the potential to lead to exponential change in the coming years.

The Blockchain market is forecast to grow in a 61.5% Compound Annual Growth Rate (CAGR) between 2016 and 2021, developing from $.2B to $2.3B in 2021. The largest segments are in the company and financial services and technologies, telecom and media. The biggest protocols comprise Bitcoin, Ethereum, and Ripple. Deloitte discovered that banks have allegedly stored between $8B to12B annually with blockchain technology to enhance operational efficiencies. The Artificial Intelligence (AI) market is predicted to rise from $8B in 2016 to $72B from 2021, reaching a 55.1 percent CAGR.

There's been a significant increase in enterprise investment on technologies that analyse, organise, access, and provide advisory services that are based on use cases for unstructured data. In fact, worldwide spending on cognitive and artificial intelligence (AI) systems will reach $19.1 billion in 2018 - that's an increase of 54.2 percent over the amount spent in 2017. With industries investing aggressively in projects that utilise cognitive and AI software capabilities, International Data Corporation (IDC) now forecasts cognitive and AI spending will grow to $52.2 billion in 2021 and achieve a compound annual growth rate (CAGR) of 46.2 percent over the 2016-2021 forecast period. "Interest and awareness of AI is at a fever pitch. Every industry and every organisation should be evaluating AI to see how it will affect their business processes and go-to-market efficiencies," said David Schubmehl, research director at IDC. IDC has estimated that by 2019, 40 percent of digital transformation initiatives will use AI services and by 2021, 75 percent of enterprise applications will use AI.

ReportsnReports.com has added Artificial Intelligence in Marketing Market is forecast to reach $40.09 billion by 2025 from $6.46 billion in 2018 at a CAGR of 29.79 percent during (2018-2025). It will be driven by the growing adoption of customer-centric marketing strategies, increased use of social media for advertising and increase in demand for virtual assistants; while North America is expected to be a major contributor to the growth of the market in 2018. The APAC AI in marketing market to grow at highest CAGR between 2018 and 2025. China, Japan, South Korea, and India are among the major countries driving the AI in marketing market in APAC. The increasing adoption of deep learning and NLP technologies in finance, agriculture, marketing, and law applications is also driving the market in this region.

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.