Over the next four years, businesses worldwide will spend double the amount of money on artificial intelligence (AI).
This is according to a new report from analyst house IDC, which claims global spending will exceed $110 billion in 2024, up from $50.1bn today.
The compound annual growth rate (CAGR) for the 2019-2024 period will be 20.1 percent, the report states.
Spending will accelerate primarily because businesses will look to digitally transform in a bid to remain competitive. In order to do that, they will seek to deploy AI solutions.
Businesses will look to deploy AI mostly to improve customer experience and help employees perform more effectively. Customer service agents, sales process recommendation and automation, as well as automated threat intelligence, prevention and IT automation are currently considered the “leading use cases for AI”.
Businesses in retail and banking will spend the most on AI products, according to the IDC report. Retail will focus on chatbots and recommendation engines to improve the customer experience, while banking organizations will look to use AI in defense against fraud.
"Companies will adopt AI — not just because they can, but because they must. AI is the technology that will help businesses to be agile, innovate, and scale," said Ritu Jyoti, Program Vice President, Artificial Intelligence at IDC.
"The companies that become 'AI powered' will have the ability to synthesize information (using AI to convert data into information and then into knowledge), the capacity to learn (using AI to understand relationships between knowledge and apply the learning to business problems), and the capability to deliver insights at scale (using AI to support decisions and automation)."