NEEDHAM, Mass.—A new report from IDC is predicting massive growth in spending on artificial intelligence in the U.S., with outlays for AI tech spending doubling to $120 billion by 2025, representing a compound annual growth rate (CAGR) of 26.0% over the 2021-2025 forecast period.
The researchers also believe that all 19 U.S. industries profiled in the latest Worldwide Artificial Intelligence Spending Guide from International Data Corporation (IDC) will deliver AI spending growth of 20% or more.
The U.S. accounts for more than half of all AI spending worldwide.
The media sector was one of the industries forecasted to have the fastest growth, with professional services, media, and securities and investment services, all forecast to have CAGRs greater than 30%.
"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."
Retail will remain the largest U.S. industry for AI spending throughout the forecast while Banking will be the second largest industry, the IDC said. Together, 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.
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George Winslow is the senior content producer for TV Tech. He has written about the television, media and technology industries for nearly 30 years for such publications as Broadcasting & Cable, Multichannel News and TV Tech. Over the years, he has edited a number of magazines, including Multichannel News International and World Screen, and moderated panels at such major industry events as NAB and MIP TV. He has published two books and dozens of encyclopedia articles on such subjects as the media, New York City history and economics.