Report: AI and Cognitive Systems Spending to Hit $12.5 Billion Worldwide This Year
There has been a lot of buzz lately around artificial intelligence and cognitive computing, with spending for both on pace to hit $12.5 billion in 2017, according to International Data Corp. (IDC).
IDC forecasts double-digit growth over last year in its latest analysis, “Worldwide Semiannual Cognitive/Artificial Intelligence Systems Spending Guide,” released Monday. Worldwide, these segments will increase 59.3 percent and achieve a compound annual growth rate (CAGR) of 54.4 percent through 2020, when global revenues are expected to reach $46 billion.
“Intelligent applications,” including cognitively-enabled process and industry applications that use machine learning techniques, are forecast to make up the largest area of spending in 2017 at $4.5 billion. Cognitive-related IT and business services come in second place at $2.5 billion, followed by cognitive/AI software platforms at $3.5 billion. According to a news release, these “provide the tools and technologies to analyze, organize, access and provide advisory services based on a range of structured and unstructured information.”
"Intelligent applications based on cognitive computing, artificial intelligence and deep learning are the next wave of technology transforming how consumers and enterprises work, learn and play," said David Schubmehl, research director at IDC’s Cognitive Systems and Content Analytics, in the release. "Cognitive/AI systems are quickly becoming a key part of IT infrastructure and all enterprises need to understand and plan for the adoption and use of these technologies in their organizations."
To learn more, view the report on the IDC site.
Sri Ravipati is Web producer for THE Journal and Campus Technology. She can be reached at [email protected].