This spending, which includes GenAI software and related infrastructure hardware and IT/business services, is expected to reach $143 billion in 2027 with a compound annual growth rate (CAGR) of 73.3% over the 2023-2027 forecast period.
This is more than twice the growth rate in overall AI spending and almost 13 times greater than the CAGR for worldwide IT spending over the same period.
“Generative AI is more than a fleeting trend or mere hype. It is a transformative technology with far-reaching implications and business impact,” says Ritu Jyoti, group VP, Worldwide Artificial Intelligence and Automation market research and advisory services at IDC. “With ethical and responsible implementation, GenAI is poised to reshape industries, changing the way we work, play, and interact with the world.”
GenAI becomes crucial in enterprise digital strategies
IDC expects GenAI investments to follow a natural progression over the next several years as organizations transition from early experimentation to aggressive build out with targeted use cases to widespread adoption across business activities with an extension of GenAI use to the edge.