Global GenAI investments are set to surge, according to a recent IDC report.
By 2023, enterprises will pour $16bn into GenAI solutions, anticipated to soar to $143bn by 2027, marking a CAGR of 73.3% over four years.
This growth outpaces overall AI investments by twice and eclipses global IT spending's CAGR by 13 times.
Ritu Jyoti, group VP of Worldwide AI and automation market research and advisory services at IDC said: "Generative AI is more than a fleeting trend or mere hype. It is a transformative technology with far-reaching implications and business impact.
"With ethical and responsible implementation, GenAI is poised to reshape industries, changing the way we work, play, and interact with the world.”
However, Rick Villars of IDC noted that until 2025, GenAI spending could be limited due to challenges in workload shifts, resource allocation, and AI skills.
"Other factors that might constrain the expected rate of investment include pricing, concerns about privacy and security, and the possibility of an existential crisis that triggers major consumer antipathy or government interventions," he added.
As businesses evolve from initial trials to full-scale integrations, GenAI's share in the AI market is predicted to climb from 9% in 2023 to 28.1% by the end of the forecasted period.
IDC asserts that GenAI will soon become an integral part of enterprise digital platforms.
