The US already accounts for over half of global AI spending.

International Data Corporation (IDC), a global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets, released their new Worldwide IDC Spending Guide for Artificial Intelligence. The Guide estimates that US spending on AI could double to $120 billion by 2025. (IDC)

Worldwide IDC Spending Guide on AI

Key takeaways:

• US AI spend is likely to grow at a compound annual growth rate (CAGR) of 26.0% over the 2021-2025 forecast period.
• All 19 U.S. industries profiled in the IDC Guide are forecast to deliver AI spending growth of 20% or more.
• However, retail will remain the largest U.S. industry for AI spending throughout the forecast while Banking will be the second largest industry.
• These two industries will represent nearly 28% 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.
• Professional Services, Media, and Securities and Investment Services are industries that will have CAGRs greater than 30%.
• Two AI use cases, namely Augmented Customer Service Agents and Sales Process Recommendation and Augmentation will remain the largest in terms of total spending throughout the forecast.
• Two AI use cases, namely Public Safety and Emergency Response and Augmented Claims Processing will have five-year CAGRs greater than 30%.
• A third use case (IT Optimization) will enjoy a CAGR of 29.7% to become the third largest AI use case in 2025.

The new giants?

“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 with IDC’s Customer Insights & Analysis team.

“However, 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.”

“The future for business is AI and those companies that can seize this opportunity could easily become the new giants.”

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