GNAI Visual Synopsis: A diverse group of professionals collaborates around a futuristic digital interface that displays various AI models and data analytics graphs, highlighting the innovative and integrated approach that businesses are taking towards artificial intelligence.
One-Sentence Summary
According to International Data Corporation (IDC), global revenue from artificial intelligence (AI) software is projected to surge to $307 billion by 2027. Read The Full Article
Key Points
- 1. The AI software market is expected to grow significantly from $64 billion in 2022 to around $251 billion in 2027, with a compound annual growth rate of 31.4%.
- 2. The IDC forecasts a separate revenue of $55.7 billion for Generative AI platforms and applications in 2027, which shows the increasing specialization in AI technologies.
- 3. AI Applications make up the largest revenue share within the AI software market, while AI System Infrastructure Software (SIS) and AI Application Development and Deployment (AD&D) are anticipated to grow faster than the overall market.
- 4. There is an emerging trend of organizations preferring to buy AI software from vendors or to use it alongside in-house support for specific business needs, signaling a preference for tailor-made AI solutions.
- 5. Ethical considerations and addressing challenges are advised to be a part of corporate strategies to maximize long-term ROI from investments in AI technologies.
Key Insight
The robust growth in the AI software market underscores the widespread recognition of AI as a transformative force across industries, with businesses increasingly seeking customized AI solutions to maintain competitiveness and ensure future resilience.
Why This Matters
The rising revenue trajectory of AI software reflects a deeper integration of AI in business operations, with an emphasis on industries that see AI as a quintessential element for innovation and strategic advantage. Understanding this growth and its implications can help inform decision-makers, investors, and professionals on where the market is heading and the types of AI technologies that will dominate business investments.
Notable Quote
“Despite economic uncertainty and shifting market dynamics, businesses are realizing that utilizing cutting-edge technology is not only a strategic necessity but also a crucial factor in achieving long-term success,” said Raghunandhan Kuppuswamy, research manager at IDC.
