Skip links
A forecast on media and AI spend

Media forecasted to be biggest investor in artificial intelligence

The focus on artificial intelligence in the tech business will lead to an 26.9% increase in AI spending this year. Global spending on AI, including software, hardware, and services for AI-centric systems, will reach $154 billion in 2023, up 26.9% from last year, according to a forecast from market research firm International Data Corporation (IDC). “The fastest growth in AI spending will come from the Media industry with a five-year CAGR (compound annual growth rate) of 30.2%.”

“The ongoing incorporation of AI into a wide range of products will result in a compound annual growth rate (CAGR) of 27.0% over the 2022-2026 forecast with spending on AI-centric systems expected to surpass $300 billion in 2026. 

Read Also:  Majority of experts worry about human control of artificial intelligence

From a geographic perspective, the US will be the largest market for AI-centric systems, accounting for more than 50% of all AI spending worldwide throughout the forecast. 

Western Europe will account for more than 20% of worldwide IT spending accompanied by a five-year CAGR of 30.0%, one of the fastest growth rates over the forecast period. 

The People’s Republic of China will be the third largest AI market with the slowest growth rate (20.6% CAGR).

“Companies that are slow to adopt AI will be left behind – large and small. AI is best used in these companies to augment human abilities, automate repetitive tasks, provide personalized recommendations, and make data-driven decisions with speed and accuracy,” says Mike Glennon, senior market research analyst at IDC. 

Read Also:  A long way to go for artificial intelligence acceptance

IDC says that one indicator of how broad spending on AI-centric systems will be over the next five years is that only one of 36 AI use cases identified by IDC will have a CAGR of less than 24% over the forecast period.

“Three of the leading AI use cases in terms of spending focus on sales and customer service functions: Augmented Customer Service Agents, Sales Process Recommendation and Augmentation, and Program Advisors and Recommendation Systems.” 

“These three use cases will see investment from nearly every industry and combined will account for more than a quarter of all AI spending in 2023”, the forecast says. 

Read Also:  Generative AI chatbots and the focus on fact checking

“The other use cases that will see the largest spending this year support a more diverse set of tasks: IT Optimization, Augmented Threat Intelligence and Prevention Systems, and Fraud Analysis and Investigation.”

The two industries that will deliver the largest AI investments in 2023 and throughout the forecast are Banking and Retail, the forecast says. “The next largest industry for AI spending will be Professional Services followed by Discrete and Process Manufacturing.” 

“Together, these five industries will account for more than half of all spending on AI-centric systems this year.” 

Read Also:  Digital transformation crucial for the news industry

 

Moonshot News is an independent European news website for all IT, Media and Advertising professionals, powered by women and with a focus on driving the narrative for diversity, inclusion and gender equality in the industry.

Our mission is to provide top and unbiased information for all professionals and to make sure that women get their fair share of voice in the news and in the spotlight!

We produce original content, news articles, a curated calendar of industry events and a database of women IT, Media and Advertising associations.

    Do you want an experienced opinion on a job issue?
    Moonshot Manager is here to answer!

      Moonshot community sharing thoughts and ideas, in a anonymous, safe environment.