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RESEARCH, ANALYSIS & TRENDS

“Many of the changes caused by the pandemic will stay
and we expect the adoption momentum of practical AI
use cases such as remote or contactless engagement
to continue. In the long term, a clear guidance on the
management of the associated risk factors of AI solu-
tions will further boost the confidence level of buying
organizations,” says Jessie Danqing Cai, Associate
Research Director, Cognitive Computing / Artificial In-
telligence for IDC Asia/Pacific.

Over the next five years, the banking industry will con-
tinue to invest the most in AI solutions. Risk mitigation
would be vital for the banking industry's AI investment
through augmented threat intelligence and fraud analy-
sis applications.

State/Local government is the second-highest spender
on AI solutions, focusing on public safety and emergen- total AI spending on fraud analysis and investigation AI
cy response, augmented threat intelligence, and pre- solutions to detect fraudulent transactions and anoma-
vention systems. lies.
Hardware will be the leading technology, accounting for
The next top spending industry is professional services,
growing fast with 26.6% (CAGR) and the key focus ar- more than 49.8% of AI spending; the largest areas of
ea is augmented customer service agents which help investment will be in servers, accounting for more than
resolve customer issues. Smart business innovation 84% of total spending, while the rest will go toward
and automation will optimize and streamline complex storage. Software is the second leading technology
and repetitive business tasks to support organizational with 31% of AI spending. While 71% of total AI spend-
decision-making. ing in software goes towards AI applications and plat-
forms. Services has the fastest spending growth, with a
"Increasing government regulations and mandates of five-year CAGR of 34.3% in technology.
AI's trust, robustness, and its ethical use will need to be
addressed by organizations," says Vinayaka Ven- The Worldwide Artificial Intelligence Spending Guide
katesh, Senior Market Analyst at IDC IT Spending sizes spending for technologies that analyze, organize,
Guides, Customer Insights & Analysis." Customer- access, and provide advisory services based on a
facing industries such as financial services, hospitality range of unstructured information. The “Spending
and tourism will take the lead in addressing these gov- Guide” quantifies the AI opportunity by providing data
ernment mandates," Venkatesh adds. for 29 use cases across 19 industries in nine regions
and 32 countries. Data is also available for the related
The top five use cases account for $6.1 billion, or hardware, software, and services categories. ◊
34.5% of total AI spending, and are forecasted to grow
to 10.8 billion by 2025. Investments in use cases such By MediaBUZZ
as augmented customer service agents, sales process
recommendation and augmentation, and smart busi-
ness innovation and automation solutions are pervasive
across all industries. These solutions enable organiza-
tions to provide a better customer experience while al-
so saving time in the decision-making process. State
and local governments are spending more than 64.3%
of total AI spending on public safety and emergency
response solutions that address new and emerging
threats and improve emergency/disaster planning and
response. Similarly, the Banking Securities Finance
and Insurance (BSFI) sector invests around 25% of

16 April 2022: Marketing Automation: AI, Big Data & Deep Learning