Thursday, June 20, 2024

AI spending to rise over $46 billion by 2026 in Asia-Pacific: IDC

Asia-Pacific spending on AI systems (including hardware, software, and services) will rise from $20.6 billion in 2022 to around $46.6 billion in 2026, according to analyst firm IDC.

Artificial intelligence (AI) solutions have become an essential part of process improvement and business decision-making, assisting organizations in keeping up with market viability. IDC forecasts a compound annual growth rate (CAGR) of 23.7 percent for 2021-2026.

“Pre-trained natural language and computer vision models have contributed largely to the 1st wave of adoptions. It’s time for more organizations to tap into their own data asset and start managing the “data to intelligence” lifecycle. This will become one of the differentiating capabilities for companies to compete in the digital-first era,” said Jessie Danqing Cai, associate research director for artificial intelligence at IDC Asia-Pacific.

“Companies that have already invested in and plan to increase investment in AI solutions will make the best use of them to outperform the market,” said Vinayaka Venkatesh, senior market analyst for IT Spending Guides, at IDC Asia-Pacific.

“Resolving skill gaps will be one of the important steps toward leveraging the power of AI solutions,” he added.

By 2026, spending on the top 5 use cases will have doubled, rising from $8.3 billion to $18.5 billion. With the present industrial digitalization, AI adoption across industries has become necessary for a competitive advantage.

China is the leading country in AI spending in Asia-Pacific, expected to reach nearly $26.6 billion by 2026. It is followed by Australia, India, and South Korea.

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