Oct 16, 2023: The International Data Corporation (IDC) forecasts a robust expansion in generative AI (GenAI) investments, with enterprise spending set to reach $16 billion globally in 2023. This burgeoning sector encompasses costs for GenAI software, infrastructure, and associated services. By 2027, the IDC anticipates this figure will skyrocket to $143 billion, boasting a compound annual growth rate (CAGR) of overall AI investments and significantly outpacing general IT spending.
As businesses increasingly look to GenAI to automate routine tasks and produce context-sensitive content, IDC and Gartner report a shift from experimental to targeted use cases, signaling a transition to mainstream adoption. Companies like SAP and Oracle are embedding GenAI capabilities to enhance customer experiences and operational efficiencies. By 2026, Gartner predicts that up to 80% of enterprises will utilize GenAI APIs or models.
These insights align with Ritu Jyoti, group vice president at IDC, who asserts that “Generative AI is more than a fleeting trend or mere hype.” This sentiment is echoed by Frances Karamouzis of Gartner, who notes the rapid growth of enterprises piloting GenAI, underscoring an industry-wide commitment to advancing AI for tangible business outcomes. Gartner further anticipates the integration of GenAI into applications, paving the way for intelligent apps capable of autonomously responding to human queries.