Skip to main content

Artificial Intelligence Growth Potential in America

Enterprise demand for data analytics insight and IT optimization continue to drive applications for business intelligence solutions. Meanwhile, CIOs consider new use cases for neural networks, machine learning, and natural language processing.

Overall spending on Artificial Intelligence (AI) in the United States will grow to $120 billion by 2025, representing a compound annual growth rate (CAGR) of 26 percent over the 2021-2025 forecast period.

Moreover, all 19 U.S. industries in the latest worldwide market study by International Data Corporation (IDC) are forecast to deliver AI spending growth of 20 percent or more. The U.S. also accounts for more than half of all AI spending worldwide.

Artificial Intelligence Market Development

Retail will remain the largest U.S. industry for AI spending throughout the forecast, while Banking will be the second-largest industry.

Together, these two industries will represent nearly 28 percent of all AI spending in the United States in 2025 and will account for nearly $20 billion of the amount added to the U.S. total over the forecast.

The U.S. industries that will see the fastest growth in AI spending will be Professional Services, Media, and Securities and Investment Services, all of which will have CAGRs greater than 30 percent.

Within Retail, the AI use cases that will receive the most investment will be Augmented Customer Service Agents, and Expert Shopping Advisors or Product Recommendations.

These two use cases encourage and assist increased spending by retail customers and account for nearly 40 percent of AI spending in the industry. The shift to online shopping contributes considerably to the adoption of AI within retail.

AI spending in the Banking industry will be spread across several different functional areas, including customer service (Program Advisors and Recommendation Systems), operations (Fraud Analysis and Investigation), and security (Augmented Threat Intelligence and Prevention Systems).

Among the 30 AI use cases IDC reviewed, two will remain the largest in terms of total spending throughout the forecast period – Augmented Customer Service Agents and Sales Process Recommendation and Augmentation. Together, these two use cases will account for more than 20 percent of all AI spending in the U.S. in 2025.

In terms of growth, two AI use cases (Public Safety and Emergency Response and Augmented Claims Processing) will have five-year CAGRs greater than 30 percent while a third use case (IT Optimization) will ride a CAGR of 29.7 percent to become the third-largest AI use case in 2025.

"The greatest potential benefit for the use of AI remains its use in developing new business, and building new business models," said Mike Glennon, senior research manager at IDC.

Outlook for Artificial Intelligence Applications Growth

However, according to the IDC assessment, existing businesses are hesitant to embrace this potential, leaving the greatest opportunities to new market entrants that have no fear of change and can adapt easily to new ways of conducting business.

IDC analysts believe that the future for business is AI and those companies that can seize this opportunity could easily become the new U.S. industry giants.

That said, I anticipate some legacy IT vendors will develop the skills and experience to apply AI technologies in their digital business transformation solutions, and then the role of these capabilities will mainstream over time. Eventually, AI becomes a foundational component of most enterprise digital services.

Popular posts from this blog

How Savvy Leaders Re-Imagine Work in 2023

As we look to the year ahead, there will be significant challenges and opportunities facing the Chief Human Resource Officer (CHRO) role. In order to be successful, savvy HR leaders must be prepared to take proactive steps that adapt and evolve. "HR leaders have faced an increasingly unpredictable environment amid many organizations mandating a return to office, permanently higher turnover and burnt out employees," said Emily Rose McRae, senior director at Gartner . HR Innovation Market Development One of Gartner's key predictions for 2023 is that the use of artificial intelligence (AI) and automation will continue to increase within the enlightened digital workplace. This transition will require HR leaders to develop new skills and competencies in order to effectively manage and lead teams that are increasingly relying on these enabling technologies. Additionally, HR leaders will need to ensure that their organizations are investing in the necessary infrastructure and re

Why Healthcare and Smart City Apps Drive 5G IoT

Fifth-generation (5G) wireless technology for cellular networks is a successor to fourth-generation (4G) wireless technology. By 2023, Juniper Research anticipates that there will be over 1 billion 5G connections globally. The technology will provide the data infrastructure for the advancement of wireless communications and for new developments in the Internet of Things (IoT) -- including smart cities and healthcare. 5G IoT Market Development According to the latest worldwide market study by Juniper Research, 5G IoT connections will reach 116 million globally by 2026 -- that's increasing from just 17 million connections in 2023. Juniper analysts predict that the healthcare sector applications and government or other smart city services will drive this outstanding 1,100 percent growth over the next three years. Juniper examined 5G adoption across key industry sectors -- such as the automotive, mobile broadband, and smart homes -- and forecasts healthcare and smart cities will accoun

Low-Code Software Tools Fuel Transformation

Many CEOs have shared their concern that the digital transformation apps backlog within their organization is causing delays in planned growth initiatives. Therefore, they're investing in new approaches to the challenge. The worldwide market for low-code software development technologies is forecast to total $26.9 billion in 2023 -- that's an increase of 19.6 percent from 2022, according to the latest worldwide market study by Gartner. "Business Technologist" roles and a growing number of hyper-automation initiatives will be the key drivers accelerating the adoption of low-code software technologies through 2026. Low-Code Software Market Development "Organizations are increasingly turning to low-code development technologies to fulfill growing demands for speed application delivery and highly customized automation workflows," said Varsha Mehta, senior research specialist at Gartner . Equipping both professional IT developers and non-IT practitioners -- e.g.