Global expenditure on Artificial Intelligence-based solutions and services is set to see an uptick, with revenues expected to grow 19.6% in 2022, according to a report by market research firm International Data Corporation.
For 2022, the global revenues for software, hardware and services based on AI, is expected to touch $432.8 billion, while the market will hit the $500 billion mark by 2023.
“Advancements in language, voice and vision technologies, and multi-modal AI solutions are revolutionising human efficiencies,” pointed out Ritu Jyoti, group VP, Worldwide Artificial Intelligence (AI) and Automation Research at IDC.
However, AI software is expected to see a slight fall in spending as enterprises prioritise investing in services and hardware, a trend that IDC expects to continue well into 2023.
AI services will see the highest uptick, with about 22% growth, while the compound annual growth rate for Hardware is expected to be 20.5%.
Within the AI software spectrum, AI-based applications accounted for 47% of expenditure, while companies spent 35% on AI system infrastructures.
“Of all the spending in the various AI market segments, AI Hardware is by far the smallest,” said Peter Rutten, research vice president, Performance Intensive Computing at IDC.
However, AI hardware is forecast to reach 5% market share in 2022, with an estimated CAGR of 24.9%.
In a January study by the Brookings institution, India is among the top 10 nations in the world in terms of funding and advancements in AI. However, India is outside of the top 10 in terms of research initiatives, but ranked sixth in terms of investments in AI made by the public, government and private entities.
The nations leading in AI achievements ahead of India are USA, China, United Kingdom, France, Japan and Germany.