Artificial Intelligence Applications & Their Predicted Growth Over The Next Decade
Artificial Intelligence Poised To See Strong Growth In Enterprise Spending And Usage
The 2020s are predicted to be a breakout decade for the investment in, and use of Artificial Intelligence (AI) in the business world. Over the next several years, worldwide business investment in Artificial Intelligence is expected to see Compound Annual Growth Rates (CAGR) of 37.5%. As a result, countries are expected to enjoy a 10-15% increase in Gross Domestic Product (GDP) due to the implementation of AI-based business tools.
Investment In AI At An All Time High
In the ultra-competitive business world, the company that is able to make better use of their data in the decision making process has an advantage against companies that make less informed decisions. By utilizing artificial intelligence in the gathering and analysis of business data, companies are able to quickly and efficiently uncover opportunities to differentiate themselves from competitors and improve customer satisfaction.
The automated tagging of data by artificial intelligence has enabled businesses to quickly and inexpensively annotate data with attribute tags and labels. The use of AI and machine learning to label and tag this data allows businesses to improve services offered and improve customer satisfaction and/or retention. To this point, as more and more companies utilize data annotation tools, the market size for AI-driven labeling tools is projected to reach $390 million by the year 2027, with a CAGR of 26.9% from 2020 to 2027, according to Grand View Research.
A Global AI Spending Phenomenon
Due to the positive results of AI-supported business tools, business AI use is forecasted to steadily increase over the next several years, clocking in a CAGR of 37.5%. In 2020, the global market size for AI was measured at $53.2 billion, and this number is expected to increase to $152.8 billion over the next three years. Clearly, businesses see great value in the use of AI in their operations, as evidenced by these strong growth numbers.
The majority of AI spending is made in North America, with $25 billion spent in 2020 and a projected $72 billion in 2023. The Asia Pacific region spends slightly less on AI, with $16 billion in 2020 and an estimated $49 billion in 2023, according to Drakestar. Europe and the Rest of World spent $9 billion and $3 billion, respectively, in 2020 and are projected to spend $24 billion and $8 billion, respectively, in 2023.