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RESEARCH, ANALYSIS & TRENDS

Top Use Case based on 2020 Market Share (Value (Constant)

Process Manufacturing, and Healthcare will round out
the top 5 industries for AI spending in 2020. The
industries that will see the fastest growth in AI spending Source: IDC Worildwide Artificial Intelligence Spending Guide—
over the 2020-2024 forecast are Media, Federal/ Forecast 2020 | Aug (V2 2020)
Central Government, and Professional Services.
Software and services will each account for a little more
"COVID-19 caused a slowdown in AI investments than one third of all AI spending this year with hardware
across the Transportation industry as well as the delivering the remainder. The largest share of software
Personal and Consumer Services industry, which spending will go to AI applications ($14.1 billion) while
includes leisure and hospitality businesses. These the largest category of services spending will be IT
industries will be cautious with their AI investments in services ($14.5 billion). Servers ($11.2 billion) will
2020 as their focus will be on cost containment and dominate hardware spending. Software will see the
revenue generation rather than innovation or digital fastest growth in spending over the forecast period with
experiences," said Andrea Minonne, senior research a five-year CAGR of 22.5%.
analyst, Customer Insights & Analysis. "On the other
hand, AI has played a role in helping societies deal with On a geographic basis, the United States will deliver
large-scale disruptions caused by quarantines and more than half of all AI spending throughout the
lockdowns. Some European governments have forecast, led by the Retail and Banking industries.
partnered with AI start-ups to deploy AI solutions to Western Europe will be the second largest geographic
monitor the outcomes of their social distancing rules region, led by Banking, Retail, and Discrete
and assess if the public was complying with rules. Also, Manufacturing. China will be the third largest region for
hospitals across Europe are using AI to speed up AI spending with State/Local Government, Banking,
COVID-19 diagnosis and testing, to provide automated and Professional Services as the leading industries.
remote consultations, and to optimize capacity at The strongest spending growth over the five-year
hospitals." forecast will be in Japan (32.1% CAGR) and Latin
America (25.1% CAGR).
"This release of the Artificial Intelligence Spending
Guide was adjusted for the impact of COVID-19," said The Worldwide Artificial Intelligence Spending Guide
Stacey Soohoo, research manager, Customer Insights sizes spending for technologies that analyze, organize,
& Analysis. "In the short term, the pandemic caused access, and provide advisory services based on a
supply chain disruptions and store closures with range of unstructured information. The Spending Guide
continued impact expected to linger into 2021 and the quantifies the AI opportunity by providing data for 27
outyears. For the most impacted industries, this has use cases across 19 industries in nine regions and 32
caused some delays in AI deployments. Elsewhere, countries. Data is also available for the related
enterprises have seen a silver lining in the current hardware, software, and services categories. This
situation: an opportunity to become more resilient and version (V2 2020) of the Spending Guide incorporates
agile in the long run. Artificial intelligence continues to updated estimates for the impact of COVID-19 across
be a key technology in the road to recovery for many all technology and industry markets as of the end of
enterprises and adopting artificial intelligence will help May 2020. (Source: IDC) ◊
many to rebuild or enhance future revenue streams and
operations." By MediaBUZZ

January 2021: AI & Automation in Marketing 13