Global AI spend is going to double in less than five years

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Over the next four years, businesses worldwide will spend double the current budgets on AI. The new report from IDC claims that global spending will surpass $110 billion by 2024, from the current $50.1 billion.

According to the stats for the 2019-2024 period, the compound annual growth rate will hit 20.1%.

Spending will increase because the businesses want to undergo a necessary digital transformation to ensure that they remain competitive. For that to happen, they have to involve the power of AI.

Customer service and security to lead innovation

Businesses are looking to deploy AI in the customer service departments and employee performance as well. Customer service agents, the sales process, automated threat intelligence, and prevention, IT automation, and other tasks will be targeted for AI integrations.

Tip: The future of customer service and experience

Retail and banking will spend the most amount of money on AI, according to the report. In retail, the focus will be on recommendation engines for improved customer experience and chatbots, to deal with customers.

Banking organizations will use AI to detect and prevent fraud.

Adapt or die

Companies are going to adopt AI, not because they can, but because they have to. Businesses that want to innovate, scale-up, and be agile at the same time, will need to get with the program.

This is according to Ritu Jyoti, the program Veep of Artificial Intelligence at IDC.

The companies that adopt AI to power processes will be able to use the AI to convert data into information and knowledge. AI’s capacity to learn the relationships between knowledge and apply it to solve business problems will be a godsend to businesses that can do it.

The capability to deliver the information that allows for scaling will forever change the industries that support it.