Enterprises spent about $19.4 billion worldwide on generative artificial intelligence (genAI) technologies in 2023 — and that amount is expected to double this year, according to research by IDC.
Organizations are spending on genAI software as well as related infrastructure hardware and IT/business services. By 2027, spending is expected to reach $151.1 billion, representing a compound annual growth rate of 85.9% over the 2023-27 period.
“Despite IT headwinds in 2023, businesses accelerated their exploration of genAI to boost business transformation,” Rick Villars, IDC group vice president, said in a statement. “In 2024, the shift to AI everywhere will enter a critical buildout phase as enterprises make major new investments with the goal of drastically reducing the time and costs associated with customer and employee productivity use cases. From there, the focus will shift to investments that boost revenue and business outcomes.”
