Worldwide spending on artificial intelligence (AI), including AI-enabled applications*, infrastructure, and related IT and business services, will more than double by 2028 when it is expected to reach $632 billion, according to a new forecast from the International Data Corporation (IDC) Worldwide AI and Generative AI Spending Guide. The rapid incorporation of AI, and generative AI (GenAI) in particular, into a wide range of products will result in a compound annual growth rate (CAGR) of 29.0% over the 2024-2028 forecast period.
"AI-powered transformations have delivered tangible business outcomes and value for organizations worldwide and they are building their AI strategies around employee experience, customer engagement, business process, and industry innovations," said Ritu Jyoti, group vice president and general manager, AI and Data Research at IDC. "With rampant innovations in trusted AI tools and technologies and improved harmonization of human and machines interplay, barriers to AI adoption at scale will continue to diminish."
While GenAI has captured the world's attention over the past 18 months, spending on GenAI solutions will be less than the combined total of all other AI applications, such as machine learning, deep learning, and automatic speech recognition & natural language processing. However, the rapid growth in GenAI investments will enable the category to outpace the overall AI market with a five-year CAGR of 59.2%. By the end of the forecast, IDC expects GenAI spending to reach $202 billion, representing 32% of overall AI spending.
