The explosive adoption of generative artificial intelligence means that enterprises will invest nearly $16 billion worldwide on GenAI solutions in 2023. This spending is expected to reach $143 billion in 2027 with a compound annual growth rate (CAGR) of 73.3% over the 2023-2027. This is more than twice the rate of growth in overall AI spending and almost 13 times greater than the CAGR for worldwide IT spending over the same period, International Data Corporation (IDC) says in a forecast.
More than 100 million people in the US will use generative AI in 2024, according to a forecast by market research firm Insider Intelligence.
Improving the product or service quality and cost savings in IT and operations are the most common reasons to develop AI and ML applications, according to S&P Global Market Intelligence.
The generative AI industry will grow around 36% every year until 2030, according to a Forrester forecast reported by Forbes.
“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, vice president at IDC.
“With ethical and responsible implementation, GenAI is poised to reshape industries, changing the way we work, play, and interact with the world.”
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.
By the end of the forecast 2027, GenAI spending will account for 28.1% of overall AI spending, up significantly from 9.0% in 2023. GenAI spending will remain strong well beyond the build out phase as these solutions become a foundational element in enterprises’ digital business control platforms. IDC says.