The new Worldwide Artificial Intelligence Spending Guide from International Data Corporation (IDC) forecasts that European spending on AI systems will jump from $17.3 billion in 2021 to more than $50 billion in 2025. The compound annual growth rate (CAGR) for 2021–2025 will be 26.7%.
Banking and manufacturing will spend the most on AI solutions over the five-year forecast period, with healthcare spending growing the fastest in the long term. Retail AI spending will largely focus on automating customer service and implementing sales process recommendations and automation engines. Manufacturing will allocate much of its AI investment to quality management and investigation solutions and systems that help manufacturers carry out predictive maintenance.
“European spending on AI will reach $22 billion in 2022, and the market will grow significantly, meaning that European companies will consider AI as a priority tech that will bring significant impacts across different industries,” said Andrea Minonne, senior research analyst at IDC UK. “European companies are increasing investments in intelligent solutions as they recognized the value of implementing intelligent and automated approaches during last year’s COVID-19 pandemic in terms of business efficiency and digital resilience.”
The Worldwide Artificial Intelligence Spending Guide sizes spending for technologies that analyze, organize, access, and provide advisory services based on a range of unstructured information. The Spending Guide quantifies the AI opportunity by providing data for 27 use cases across 19 industries in nine regions and 32 countries. Data is also available for the related hardware, software, and services categories.