The worldwide artificial intelligence (AI) software market will grow from USD64 billion in 2022 to nearly USD251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4% according to a recent forecast from International Data Corporation (IDC).
Indicating a growing demand for AI solutions and highlighting the need for customised business-based requirements, a third of respondents believe that organisations will prefer to buy AI software or use in-house support together with vendor-supplied AI software.
"The momentum behind investments in AI and automation technologies remains unwavering 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. Despite potential challenges and risks, organizations are confident that adopting AI will continue to be crucial for future-proofing their business operations and remaining ahead of the competition," said Raghunandhan Kuppuswamy, research manager, of Artificial Intelligence and Automation Research at IDC.
AI Applications is currently the largest category of AI software, with a five-year CAGR of 21.1% revenue growth. Artificial Intelligence Platforms comes next with a 35.8% CAGR for the 2023-2027 forecast period.
"The AI landscape is changing rapidly. Convergence of traditional AI with Generative AI will lead to cutting-edge solutions that combine decision efficacy with creative ingenuity," said Ritu Jyoti, group vice president, of Worldwide Artificial Intelligence and Automation market research and advisory services at IDC. "As businesses continue to invest in AI, they should be prepared to address challenges and prioritize ethical considerations to maximize the long-term ROI."