AI Software Transforms Industries: Unleashing Global Opportunities

by | Nov 2, 2023

Artificial intelligence (AI) is quickly reshaping industries and transforming business operations. According to a recent report by IDC, the global revenue for AI software is expected to reach $279 billion by 2027. This forecast includes different categories of AI software, such as AI Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software.

The IDC report highlights the great potential of AI applications in various sectors, including collaborative workflows, enterprise resource management, supply chain management, production, operations, engineering, and customer relationship management. AI is revolutionizing how businesses operate, and the integration of traditional AI with Generative AI is expected to drive the development of advanced solutions, fostering innovation and opening up new possibilities for businesses seeking a competitive edge.

Currently, AI Applications are the largest category of AI software, followed closely by AI Platforms. These platforms play a crucial role in facilitating the development of AI models and applications. The growth of AI-centric software, where AI is fundamental to an application’s functionality, is surpassing AI non-centric software, where AI is not essential.

To successfully navigate the evolving AI landscape, organizations must prioritize ethical considerations and address challenges associated with AI implementation. Despite economic uncertainty, investments in AI and automation technologies continue to rise due to the strategic necessity of future-proofing operations and staying ahead of the competition. AI Platforms are projected to have the second-fastest growth rate over the forecast period, with a Compound Annual Growth Rate (CAGR) of 35.8%.

AI SIS and AI AD&D software are expected to outpace the overall market growth with CAGRs of 32.6% and 38.7%, respectively. AI SIS benefits from its integration with existing software systems, enabling organizations to gain valuable insights from their data.

The comprehensive forecast provided by the IDC report includes various technology categories, sub-categories of AI Applications, revenue for three geographic regions, and two deployment types. This analysis offers valuable insights for businesses seeking to successfully navigate the evolving AI landscape.

Surprisingly, about one-third of respondents believe that organizations will prefer to purchase AI software from vendors or use in-house support alongside vendor-supplied AI software. This finding emphasizes the importance of establishing strong partnerships and collaborations to capitalize on the full potential of AI technologies.

With a projected five-year CAGR of 21.1%, revenue growth in the AI Applications category demonstrates the great potential for businesses to leverage AI across multiple areas. IDC’s forecast highlights the immense growth opportunities and the need for businesses to embrace cutting-edge technology.

In conclusion, the projected growth of AI software presents a transformative opportunity for businesses in various industries. By embracing AI Platforms, AI Applications, AI SIS, and AI AD&D software, organizations can unlock innovative solutions, streamline operations, and gain a competitive advantage in an increasingly dynamic marketplace. With careful consideration of ethical implications and tailored approaches to meet individual business needs, AI has the potential to revolutionize the way we work and thrive in the digital age. As the AI revolution gains momentum, businesses that embrace these technologies will be best positioned to lead the way into a future powered by intelligent machines.