Moving alongside other parts of the world, the APAC region has been a juggernaut in adopting latest technologies. Now a latest report states that Asia-Pacific region will shell out more pennies on artificial intelligence(AI) systems this year.
Compared to last year, the expected spending in AI is reckoned to reach $5.5 billion this year – almost 80 percent increase over 2018.
This increase comes amidst China’s growing retail industry, noted IDC.
In a new report, the research firm IDC also said it expects AI spending to climb at a compound annual growth rate of 50 percent from 2018 to 2022, reaching a total of $15.06 billion in 2022.
This means AI spending growth in the Asia-Pacific region is expected to outpace the rest of the world over the next three years.
Most of the growth will happen in China, which IDC says will account for nearly two-thirds of AI spending in the region, excluding Japan, in all forecast years.
Spending on AI systems will be driven by retail, professional services and government industries.
Retail demand for AI-based tools will also lead growth in the rest of the region, as companies begin to rely on it more for merchandising, product recommendations, automated customer service and supply and logistics. While the banking industry’s AI spending trails behind retail, it will also begin adopting the tech for fraud analysis, program advisors, recommendations and customer service. IDC forecasts that this year, companies will invest almost $700 million in automated service agents. The next largest area for investment is sales process recommendations and automation, with $450 million expected, and intelligent process automation at more than $350 million.
Industries Spending on AI Systems
The fastest-growing industries for AI spending are expected to be healthcare (growing at 60.2 percent CAGR) and process manufacturing (60.1 percent CAGR). In terms of infrastructure, IDC says spending on hardware, including servers and storage, will reach almost $7 billion in 2019, while spending on software is expected to grow at a five-year CAGR of 80 percent.