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.

About the Author

Sri Ravipati is Web producer for THE Journal and Campus Technology. She can be reached at [email protected].

Featured

  • teacher and children working with a LEGO Education Science kit

    LEGO Education Debuts Science Kits for Hands-on Learning

    LEGO Education has announced a new learning solution to engage students in hands-on science learning. Available in three kits by grade band, LEGO Education Science provides 120-plus standards-aligned science lessons, teacher materials, and select LEGO bricks and hardware.

  • Geometric illustration of colorful robotic toys with distinct features like heads, arms, wheels, and antennas on a light gradient background

    KinderLab Robotics Expands Curriculum to Serve Upper Elementary Students

    KinderLab Robotics has expanded its STEAM robotics offerings with a new curriculum to develop computational thinking and computer science skills for students in grades 3-5.

  • Two figures, one male and one female, stand beside a transparent digital interface displaying AI symbols like neural networks, code, and a shield, against a clean blue gradient background.

    Microsoft-IDC Report Makes Business Case for Responsible AI

    A report commissioned by Microsoft and published last month by research firm IDC notes that 91% of organizations use AI tech and expect more than a 24% improvement in customer experience, business resilience, sustainability, and operational efficiency due to AI in 2024.

  • hand touching glowing connected dots

    Registration Now Open for Tech Tactics in Education: Thriving in the Age of AI

    Tech Tactics in Education has officially opened registration for its May 7 virtual conference on "Thriving in the Age of AI." The annual event, brought to you by the producers of Campus Technology and THE Journal, offers hands-on learning and interactive discussions on the most critical technology issues and practices across K–12 and higher education.